14 Sep How to Grow an Insurance Agency: 3 Steps To Building An Agency Growth Machine
How much did your agency grow last year? How about over the last 5 years?
If your answer is anything less than 10% then this article is for you. In it I want to share with you three keys to grow an insurance agency that I’ve discovered as I’ve helped agencies grow over the last 25 years.
People like Jon Sharp from Hardenbergh Insurance Agency, who said, “The most tangible result to the agency has been the bottom line. Before we averaged 3.3% growth year over year. Now, we are realizing extraordinary growth. My definition of extraordinary growth is 60% organically over the past 4 years. That equates to organic growth of 15% year over year!”
During those four years Jon did an excellent job implementing the following three steps that I’m about to share with you. If you ask him about it, he’ll tell you that it was hard, but worth it. So even though these “steps to growth” may seem simple (they are) it doesn’t mean they’re easy to do.
If they were, then every agency would be growing 15% or more every year. However, most are not. And that’s because they never really took the first step, which we’ll get into now…
Step 1: Commit to Growth
Let me ask you a question… is there anything in your life that you’ve truly committed to that you don’t have?
Really, think about it.
Half-Hearted Commitments Almost Always Fail
For most of us the answer is no. If we wanted something bad enough, we found a way to get it. However, half-hearted commitments almost always fail; especially when you’re trying to accomplish something hard.
Take dieting for example. There are many people who say to themselves, “You know, I should probably try to start eating better. Maybe I’ll try this new diet for a while and see how it goes”.
Then a few weeks later it gets tough. The desire for sweets and carbs intensifies and the idea of sticking to the diet feels like too much work. So they cave and revert back to unhealthy eating.
However, if you went to the doctor tomorrow and he said, “Listen, I need to have a serious talk with you. We got your blood work back and if you don’t make some big changes to your diet you’re not going to live much longer. You need to avoid sugar and refined carbs from now on.”
Now how committed would you be to your diet?
Would you grab some soda and brownies in the break room tomorrow when you got a craving for sweets or would you resist the temptation and stick to your plan?
If your life depended on it, you’d stick to the plan.
Some people call this the “gun to the head” approach. Others say, “half measures availed us nothing.”
The point is, it’s a universal truth. A law of life that you can harness to accomplish amazing things… like growing your agency 10%…15%…or 20% year over year.
So when people ask, “Why aren’t more agencies growing at a faster pace?”
The only plausible answer is simple. They just never committed.
Step 2: Motivate Your Producers to 2X Growth
Once you truly commit to growing your agency, the next step is to make a plan on how to grow an insurance agency.
And since we’re talking about how to grow organically, versus growing via acquisitions, your plan must include a way to get your producers to sell more.
If you can get them to do a better job at prospecting, selling and retaining business, your agency will grow. The more they grow their books and personal income, the more your agency’s value will increase.
My strategy to motivate Producers
For the last 20+ years I’ve used a simple, yet highly effective, strategy to do this.
I teach owners how to sit down with each of their producers and help them set some long-term personal income goals. I have them essentially play the role of a financial advisor and ask them what kind of future they want 10, 20 and 30 years from now.
Then they write down how much money they should be saving each year to hit those goals. Once they see how much they’re under funding their future it should light a fire under them!
With this newfound motivation you can then lay out a plan to help your producers double their book of business in 3 years or less with half the accounts they have now. Of course you’ll need a plan on how to do that, which is a subject for another time.
But imagine how much your agency would grow if all of your producers doubled their books in the next 3 to 4 years? What if even half of them did this? Would that be more growth than you’re seeing now?
The point is, you need a path and plan to get your producers where they want to be so your agency can experience extraordinary growth.
Step 3: Train Your Producers to Increase their Confidence
Confidence is a self-fulfilling prophecy. Those without it often fail. And those with it succeed.
This is something many agency owners overlook because most of them have a high degree of confidence already.
If that’s you, think about it. You probably never considered the impact of feeling confident — it wasn’t really a choice. You just did what you did and you did it well, and your proof is in the pudding. You have nice cars, a nice house, great vacations and a high net-worth to prove it.
To some degree, you don’t really understand those who don’t have confidence like you do. And you get frustrated. From your perspective, everything they need is out there. It’s theirs for the taking and they just need to go get it (like you did!).
However, the reality is the average producer is not like you.
You need to train your Producers
They do not have your innate capability, drive or level of confidence. And as a general rule, they won’t develop it on their own. If their environment is not designed to intentionally develop them, they will drive in 3rd gear, rather than 5th gear. They will get by, but they will never unlock their full potential.
And if you don’t train them, you’ll never move the average person to above average. You’ll never help them improve enough to develop a superior level of confidence.
Without confident producers who can set new business appointments with relative ease, know how to engage a new prospect, build rapport, find pain, get commitment and close the AOR/BOR… then you’ll never build the sales team of your dreams.
Where does that confidence come from? It comes from training. Where does the training come from? It comes from having a clearly defined process.
So it’s up to you, the leader, to install or create processes everyone can follow. If you need help, contact us and we can get you started with insurance sales training programs that work right for your company.
Easier Said Than Done…
As you can see, the steps to growing your agency are simple. But actually doing them is the hard part! And like we talked about earlier, none of this will work unless you take the first step which is to truly commit!
If growing your agency is not important to you in this season of your life then do yourself, and those around you a massive favor and just be honest and admit it. You may be content where you’re at and if so, that’s fine.
However, if you’re halfway committed you’re going to be miserable. Either decide you’re going to do this or let it go and focus your time and energy in other areas of your life. But if you’re serious about growth, do whatever you need to do to motivate your producers to reach their next level of success and invest in them so they can become confident people who won’t let any obstacles stand in their way!
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