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Producer Recruiting: FIVE steps to success

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  • 1. Producer Recruiting: 5 Steps to Success Presented by: Josh Morgan Jared Roy Consultant Consultant Josh.Morgan@MarshBerry.com Jared.Roy@MarshBerry.com 440.392.6579 440.392.65602012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 0
  • 2. Agenda  MarshBerry Overview  Recruiting Background/Statistics  5 Ways To IMPROVE Your Strategy  Review  Q&A / Discussion2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 1 1
  • 3. Marsh, Berry & Company  Founded in 1981  Managing Peer-to-Peer  4 Offices: OH, CA, TX, MI Network Groups for 15  Privately-held Information Services years  Perpetuated Ownership  6 Networks with over 186  19 Shareholders partners across the US, Canada and Puerto Rico  Clientele Includes: Management  Insurance Agencies Consulting  Network Clients represent  Brokers over $2.3 billion in  Wholesalers collective broker revenue,  Credit Unions and $24.5 billion in total  Banks insurance premiums  Insurance Companies Exchange Networks MarshBerry is dedicated to enabling insurance distributers to LEARN, IMPROVE and REALIZE M & A Advisory their fullest business potential.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 2 2
  • 4. Recruiting Background/ Statistics2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 3 3
  • 5. Beating The Odds Do you have the courage? Hiring Demographics Average Producer Age 33 Average Starting Salary 55,604 Average Years of Sales Experience 8 Average Number of Jobs Held (post college) 3 Producer Retention Rate 70% Production Results Average 1st Year Revenue (Employed 1 Year or More) 48,674 Average 2nd Year Revenue 56,033 Average 3rd Year Revenue 85,4932012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 4 4
  • 6. Average Weighted Book of Business Weighted Book of Business - Average Weighted Book of Business - High Grow th 37.9% 40.0% 35.0% 31.2% 33.0% 29.6% 35.0% 30.0% 26.4% Commissions/Fees Commissions/Fees 30.0% 25.0% % of Total % of Total 25.0% 20.0% 20.0% 12.4% 14.0% 15.0% 15.0% 8.8% 10.0% 10.0% 2.7% 3.9% 5.0% 5.0% 0.0% 0.0% 21-30 31-40 41-50 51-60 60+ 21-30 31-40 41-50 51-60 60+ Age Age Commission/Fees Controlled by Producers Over 50 years = 51.9% vs. 38.4%2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 5 5
  • 7. #1 Find Sales Talent, Not Technical Talent2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 6 6
  • 8. #1 Find Sales Talent, Not Technical Talent  Why Sales Talent? • Easier To Teach Someone Insurance Rather Than Sales  In many cases, getting a producer from another agency means inheriting someone else’s problem Pictured: The star of the movie “Problem Child”2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 7 7
  • 9. A Breakdown of Capacities That Drive Sales Performance  Job Skills: Product and marketplace knowledge to include experience in an industry.  Sales Skills: Those abilities related to a person’s capacity to understand and Personal apply state of the art selling skills and Skills Job Skills relative to appropriate level prospecting, selling and account management functions.  Personal Skills: Those individual capacities that determine a person’s Sales ability to implement the job and sales Skills skills they possess – attributes such as self-starting capacity, self- management, personal motivation, consistency and literally scores of other essential skills.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 8 8
  • 10. Producer Success Formula (Job Skills + Sales Skills) x Personal Skills = Producer Success Score Example 1: High Insurance Experience/Average Sales Experience/Below Average Personal Skills Job Skills : 10 Sales Skills: 5 Personal Skills: 4 (10 + 5) x 4 = 60 PSS = 60 Example 2: Low Insurance Experience/Average Sales Experience/High Personal Skills Job Skills: 3 Sales Skills: 5 Personal Skills: 9 (3 + 5) x 9 = 72 PSS = 72 Personal skills are the multiplier of performance. Product knowledge, job or sales skills are things that can be taught, learned or acquired.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 9 9
  • 11. MarshBerry Recruiting Model: Hiring from Outside the Industry  Recognition that there has been far too much failure in hiring producers due to placing so much emphasis on technical knowledge.  Hiring people who can sell and teaching them the technical side of the business poses much less risk than vice versa.  Build failure into your hiring system.  How can we build the risk into the system? • Compensation plans • Keeping training costs low initially • Focus on prospecting early in the game • Pairing with a mentor to capture revenue quickly2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 10 10
  • 12. #2 Have An Effective Compensation Plan2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 11 11
  • 13. An Effective Compensation Model I. Compensation model that offers upside to top candidates while protecting downside for your firm a. Three year base salary as follows: Year Base 1 $60,000 2 $40,000 3 $20,000 b. Commission From First Dollar paid to producer c. Base validated by new business appointments d. Examples at $60k Base i. Beginning in month three, the base pay of $5k per month must be earned or base drops for the following month ii. Assume we want $60k in production for $60k base iii. Further assume $5k gross commission per account iv. 12 accounts needed to earn base - 12 accounts x $5k Base = $60k v. Using a 25% closing ratio, we now need 48 deals in the pipeline for year one vii. In this example, we need approximately five first time new business appointments per month viii. In month three, if a new producer only obtained four new business appointments, then month four compensation would be $4k, not $5k2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 12 12
  • 14. #3 Sell The Industry2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 13 13
  • 15. Selling The Industry Insurance Noise  Salespeople get inundated with insurance offers  Insurance is a dirty word in the job market • Work From Home • Multi–Level Marketing • Ponzi Schemes • Even Most Legitimate Offers Are Not What great Salespeople Are Looking For2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 14 14
  • 16. Selling The Industry Five of the most favored job opportunities good sales people look for:  Business-to-business sales to large organizations  The opportunity to make good money soon – and great money long- term  Eventual partnership or ownership opportunities  Limitless income (many organization cap compensation for salespeople)  Long-term stability (downsizing and acquisitions have taken their toll on the candidate pool)2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 15 15
  • 17. Selling The Industry  Design all communications to highlight the five attributes  Don’t hide Insurance, but slowly introduce them to it  Create a multi-step strategy that touches potential candidates on several levels • Posting Ads o Online job sites o College sites • Send Emails o Use online e-mail tool o Send personal e-mail through outlook o Last chance e-mail • Word of Mouth Campaign Offer incentives internally o • Phone Calls o Call only the best candidates o Rarely needed2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 16 16
  • 18. #4 Create A Mentor Program2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 17 17
  • 19. The Four Horseman of Mentorship Closer Mentor - Most critical of mentors. Accompany the new producer on all sales calls. No one learns to sell in a classroom. Marketing Mentor - This mentor will help the new producer learn what is an acceptable submission and what is not. All questions relating to coverage, markets, etc. will be handled by Marketing Mentor. Sales Tracking Mentor - This mentor will hold weekly meetings to go over prospecting activity and monthly meetings to track goal process. Education Mentor - This mentor is responsible for making sure the new producer is on track with acquiring the technical knowledge to be successful. This can be anyone internally that is knowledgeable of technical insurance training.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 18 18
  • 20. Sales Management Made Easy  Weekly Meeting to Discuss: • Week Ending Activity Sheet • Next Week’s Prospecting Time To Be “Blocked”  Monthly Meeting to Discuss: • Month End Review of Goals • Next Month’s “Bite” of Annual Goals • Year-To-Date Progress on Annual Goals2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 19 19
  • 21. Annual Goals & Objectives - January 2010 TARGET DATE ACTUAL DATE GOAL TO ACCOMPLISH ACCOMPLISHED ____ Number of First Time 1. Business Appointments Complete and pass all 6 2. AICPCU basic training modules Average account size for first 3. year to exceed $_______ 4. 5. 6. 7. 8. 9. 10.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 20 20
  • 22. Monthly Goals GOAL TARGET DATE ACTUAL DATE 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 21 21
  • 23. Activity Sheet Week Of: Producer Name: ______________________ Agency Name: ________________________ Hours Prospecting:____________________ New Business Commission:______________ ATTEMPTS CONVERSATIONS APPOINTMENTS MONDAY TOTAL TUESDAY TOTAL WEDNESDAY TOTAL THURSDAY TOTAL FRIDAY TOTAL WEEKLY TOTAL2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 22 22
  • 24. Block Time For Next Week’s Prospecting Producer Name: ______________ Week Ending: ________________ Monday Tuesday Wednesday Thursday Friday 8:00 AM 9:00 AM 10:00 AM 11:00 AM 12:00 PM 1:00 PM 2:00 PM 3:00 PM 4:00 PM 5:00 PM2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 23 23
  • 25. #5 Education And Ongoing Training2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 24 24
  • 26. Methods Of Producer Education  Mentoring  MarshBerry Sales Pro  Producer Schools • We recommend sending new producers after six months to a year • Send only after they can prove solid activity  Online • New Level Partners2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 25 25
  • 27. New Level Partners Specialists in Online Education Rise Above the Competition!2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 26 26
  • 28. Course Learning Objectives2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 27 27
  • 29. Course Interactivity2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 28 28
  • 30. Course Graphics and Interaction2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 29 29
  • 31. SalesPro Producer Training Designed for both new and seasoned commercial and group employee benefits producers who are looking to achieve a higher level of performance. Sales Training to Create Commercial Coverage High-Performing Producers Essentials April 23-24, 2012 April 25-26, 2012 • Raise expectations • Practical and comprehensive • Create capacity coverage instruction - great for new producers • Learn which suspects to chase • Blends technology with • Discover the right way to make a interactive learning suspect a prospect • Introduces key Property, Liability • Create an environment that and Workers Compensation enables the right prospect to buy coverage and risk management concepts Sessions run in tandem with Spring and Fall APPEX Summits. Visit www.MarshBerry.com/TrainingSessions for further details. Questions about SalesPro? Contact: Justin Berry at 440-220-5431 or Jim Wochele at 440-392-65592012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 30 30
  • 32. Upcoming APPEX Summit IMPROVE Spring APPEX Summit 2 ½ Day Semiannual Conference – Spring 2012  State of the Industry Presentation  General Session focused on Healthcare Reform  Strategic Issues Groups - 12 PAX Groups  Educational Breakout Sessions • Employee Recognition • Future of Technology in the Industry • Compensation and Operations IMPROVE Spring 2012 Wednesday, April 25th – Friday, April 27th Sheraton Dallas Dallas, TX For more information or to register: www.MarshBerry.com/IMPROVEPartnerNominees2012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 31 31
  • 33. THANK YOU! IMPROVE Spring APPEX Summit Wednesday, April 25th – Friday, April 27th Sheraton Dallas, Dallas, TX FOR MORE INFORMATION: www.PeerNetworks.MarshBerry.com TO REGISTER: www.MarshBerry.com/IMPROVEPartnerNominees Josh Morgan Jared Roy Consultant Consultant Josh.Morgan@MarshBerry.com Jared.Roy@MarshBerry.com 440.392.6579 440.392.65602012 Marsh, Berry & Company, Inc. – No part of this presentation may be reproduced, Spring 2011 BANK/TASC Summitpublished, stored or transmitted by any means, electronic or mechanical, without prior writtenpermission of Marsh, Berry & Company, Inc. 32 32

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