reasons insurance agent recruiters brokerage sales fail

Part 5 of 5
 health, annuity, and life insurance brokerage sales series

BONUS FACT  Insurance Brokerage Recruiters Fail to Think Like Business Owners. Many set on their can for months, waiting for their carrier or carriers to introduce a new product. Then they rush to have their marketing firm to be the first to offer the product like none ever seen before.

1. THE PANIC BUTTON Suddenly an insurance list compiler receives a frantic call from an internet searcher. The internet caller usually has minimal experience under his belt. His mind is in a trance of “I’ve got the best product imaginable, and I want to get agents selling it right away”. In the chaotic frame of  thinking, the recruiter has spent zero time making up a marketing plan.  What geographic area?, what style of product (not “life and health”), how are you going to contact the brokers?. How many brokers do you plan to mail? “How many agents are you looking to recruit? Will the brokers be fully independent or work at your location?

Out these six questions, the caller may be set on only 2. This is the recruiter career opportunity,, not like going shopping for some snack food..70% of agent recruiters are in a panic state between company product announcement and recruiting starting.

2. RECRUITERS JUDGE QUANTITY OVER QUALITY  The majority of marketing agents feel that the quantity of agent leads received back is more important than quality, .they must of never gone fishing in a small lake overpopulated with small pan fish. Inexperienced agents will bite at your offer 3 times as often as independent brokers. .Having 100 chances to catch small fish is in total weight less than getting 50 chances to go after high producing independent brokers.

3. NOT UNDERSTANDING THE SALES RECRUITING FORMULA  To understand the formula you must believe  leads are less important than contracts, and contracts are less important that brokers writing business. If a contracted broker never submits cases to you, what good is that producer. Okay the easy formula  is quality leads divided by agents contacted divided by brokers that submit business. If your formula answer was 20-8-4, it would mean that receiving 20 high quality leads would ultimately end with 4 good brokers. 

4. THE EXTREME IMPORTANCE OF ROI  If you are recruiting agents to become financially secure then ROI, Return on Investment maps your rate of success. Money put in versus money received back. For  marketers recruiting insurance brokers the number can range from 1 to 1 to an amazing 10 to 1/ The concept is to look at your agents that actually sell, and how much will this agent average in overrides profits during a 3 year term.

An example.  (a) Assume your average writing agent brings in $3,000 in overrides in 3 years. (b)your last recruiting campaign brought in 4 writers, so you now show a net profit of $12,000. (c) the expenses for the mailing campaign were $2,000, (d) subtracting $2,000 of expenses from profits of$12,000 means $10,000 in net profits. Your ROI would be 5 to 1. For every $1 spent your realized $5 back.

A terrific return on investment would be 10 to 1. Here’s where it goes back to spending money to make money. If your personal ROI averaged 5 to 1, and you wanted to boost your income by $80,000 through agent recruiting, over recruiting campaign would require $20,000. 5 times 20= $100,00 minus 20,000 in expenses = an $80.000 gain.