Loyalty, Green Grass and the Insurance Producer

“The grass is not, in fact, always greener on the other side of the fence. No, not at all. Fences have nothing to do with it. The grass is greenest where it is watered. When crossing over fences, carry water with you and tend the grass wherever you may be.”   Robert Fulghum

 

The advice above is especially applicable to insurance producers. In my 15 years as an agency owner, I've seen many examples of what happens when producers decide to jump ship.

Here are three case studies. You can decide where the grass was greener.

Case Study No. 1: Dave

Around 1998, we were looking to build our employee benefits division and though a conversation I heard that a local agent was having some issues at his current agency. I did not know the agent, but had heard good things about “Dave.” I called Dave and asked him to lunch. We met and I told him our vision of a successful company. We had a good conversation and a few days later, Dave decided to join our team. Dave was a great sales person, but didn't seem able to manage his money. After 3 years and a great run, Dave left and purchased his book of business. 

He started his own agency and for 10 years had a nice existence. Dave became a friendly competitor, and ran a good business. Recently Dave sold his agency to a local bank and is now forced to attend meeting after meeting, no longer in charge of his destiny. As good as Dave was at sales, he struggled to manage a company. If Dave had stayed on board with us, by now he would have had a large book of business and be in a position of self-management and substantial income. 

Case Study No. 2: Joe

In 2002, another young man joined our firm. “Joe” joined us from a bank, had a history with me and my personal lines manager, and seemed like a great fit. For 5 years, Joe worked hard, built a solid book of business and became a key member of our perpetration team. After 5 years, Joe was given a sweetheart deal from another local agency (sound familiar?) and decided to join their company. 

At the time I was frustrated, angry and confused. Why did Joe leave us? We were obviously the best agency in the area (in my mind). I spent the next 5 years angry with Joe, watching as he worked hard for the other company, doing quite well and becoming our fiercest competitor. Joe became a great agent–working for the competition. 

One day I decided that I was no longer angry with Joe and we met for coffee. Joe and I quickly became confidants once again and soon I learned  that he was getting ready to leave his current employer and start his own agency. 

Joe now owns The Joe Group and is going to be very successful. He is working hard to build his book, just hired his first producer, and at age 43, will have a very successful company in the coming years. I'm proud of Joe, but often wonder what would have happened if he had stayed with us. More than likely, he would have a very successful book of business and be in a self-management role. But now, Joe is working very hard at a time in his life when the rest of us are starting to enjoy the fruits of our labor.

I don't blame Dave or Joe for their decisions. As an agency owner  myself, I applaud anyone's entrepreneurial spirit. But my point to both of my friends is that at their age, they're having to work very hard to build their agencies as  start-ups while our company is very profitable right now. This might sound like sour grapes, but in fact it's the opposite. I learned many great lessons from my former producers, and our agency couldn't be what it is today without their contributions.  

Case Study No. 3: Bob 

Finally, there was “Bob.” Bob joined me in 1996, shortly after I began purchasing my father's insurance agency, for a salary of $19,000 a year, focusing on personal lines and small commercial. He was on a draw because I didn't have any money. As Bob sold business, we gave him credit and I was able to recoup my $19K. 

Today, Bob makes a nice six-figure income. He's become a pillar in our community, has two great kids, and recently spent the summer traveling with his family in his new RV. Bob has an amazing retirement program and will retire from our company in the coming years.

The point of all of this is to the young insurance producer: the grass is not always greener. If you stay put, water your grass and look long term, you just might find out the path you are on is not that bad. There are always other seemingly better deals out there, but Bob will tell you, his loyalty paid off and his grass has never been greener.