Getting started in the insurance business isn't easy, to say the least. Estimates are that two-thirds of all new producers don't survive through the second year, and those who do typically write a pitifully small amount of new business. Here's what I've learned about being successful from the more than 800 new producers I've coached during the past 18 years.
1. Forget About Work/Life Balance during the Early Years
Work-life balance is dead. — Ron Friedman
You are essentially starting your own business. It's not possible to successfully build any new business working only 40 hours a week, so expect to put in long hours. Keep in mind that most people who start their own business not only work long hours, but they often have to make a significant financial investment as well: borrowing money, taking out a second mortgage on their homes, and the like. You, on the other hand, have only to invest your time and energy. You have the flexibility to avoid missing important family commitments, but don't shortchange yourself by being concerned with the hours you are investing in your business during the early years. The payoff will be well worth the sacrifice.
2. Learn the Business — Fast
The more that you read, the more things you will know. The more that you learn, the more places you'll go. — Dr. Seuss
Become a student of the insurance business. Use those hours before and after work to learn your craft. Learn as much as you can through self-study and online courses so you don't have to take time away from sales activities. Sign up for the Certified Insurance Counselor (CIC) program as soon as you can. The odds of making a sale are stacked against you. More than 90% of commercial accounts, for example, will stay right where they are this year. The incumbent agent has been in the business longer (maybe a lot longer than you) and has a relationship with the client. You've got to improve the odds as quickly as you can. One way is to know your stuff. Knowledge is power.
3. Prospecting Is the Engine That Drives Sales
Eighty percent of new sales people who terminate in year one do so due to lack of prospecting activity. — Monte Rose
An abundance of prospects can overcome almost every sales deficiency while a new producer is learning the business. If you were to say to every person you meet, "You don't want to buy any insurance, do you?" eventually one of them will say, "Yes, I do. Where do I sign?" This is obviously not the optimal approach to building a book of business, and you certainly wouldn't want to rely on it long term, but for most new producers, getting sales traction is very much a numbers game.
One new successful personal lines producer I coached had a goal of handing out 5,000 business cards each year. He approached every person he came into contact with about their insurance. The dry cleaner, the gas station attendant, his daughter's dance teacher, the waitress at Cracker Barrel — everyone was given an opportunity to buy from him. He led his class in sales that year.
I once heard sales great Joe Gandolfo introduce himself by saying, "I'm Joe Gandolfo, and I sell more life insurance than any other human being on the face of the earth" (and he did at that time). Joe began his career by meeting the weekly prospecting goals he had been given by his company every single day! That's right; he did a week's worth of prospecting every day. Joe knew if he had enough prospects he could not fail.
Be sure to do your homework before setting out to prospect. Analyze the market to determine whether there is a good fit between the products you have to sell and the prospects you have available. Do those products have the coverages and pricing that will give you the opportunities you need to close sales? This can help you target accounts that are most likely to buy.
4. Time Can Be Your Worst Enemy or Your Best Friend
The bad news is time flies. The good news is you're the pilot. — Michael Altshuler
Focus on activities that lead you to making sales. Start your day early, 6:00 to 6:30 a.m. Contractors are already on the job by 7:00 a.m. Not working with contractors? Then use that time to study. Stay out of the office during business hours. A routine of starting each day with a couple of cups of coffee in the office can be a sales killer. Instead, meet a prospect for breakfast or sign up for a networking group that meets at 7:00 a.m. Go to lunch with prospects or centers of influence, not other agents (unless, of course, they can teach you something).
One of the most effective timesavers is to learn when to walk away from prospects that are unlikely to buy. Becoming a quoting machine eats up huge chunks of time and will destroy your closing ratio, which in turn will erode your confidence. No one can strike out again and again without it affecting their mental attitude, so learn how to identify those accounts that you have a high probability of closing. The most successful salespeople are those who can generate the most sales in the shortest period of time.
5. Take Responsibility for Your Own Success or Failure
Peak performance begins with your taking complete responsibility for your life and everything that happens to you. — Brian Tracy
I have coached successful producers in many different circumstances. Some suffered through divorces, serious illnesses, or the deaths of family members. When faced with these obstacles they worked even harder rather than accept failure. They refused to place blame on their situations or other people.
The rewards of a successful insurance career can be huge. In a relatively short period of time you can be earning an income comparable with corporate executives. This can give you the opportunity to provide a fine home for your family in a good neighborhood where your children can go to quality schools, all the while making a positive contribution to your community — doing well, while doing good.
Ken is an assistant vice president of sales development with The State Auto Insurance Cos. He also serves on the national faculty for the National Alliance for Insurance Education & Research. For information on the Dynamics of Selling program or the National Alliance Producer School, go to: www.TheNationalAlliance.com.
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