New Producers- A Number’s Game?

29 Mar New Producers- A Number’s Game?

How many new producers do you have to hire to find one or two that will not only make it in the business, they will produce large books of business? The research I've seen says, that the really good agencies will hit on 5 or 6 out of 10 hires.  The really ineffective will hit on 1 out of 10.  Everyone else fits in the middle. Is it a numbers game?  Can hiring be improved a little or a lot?

One of the best numbers I've experienced is 29 out of 34.  34 Producers were hired and 29 made it over a 10 year period.  They produced annually renewable revenue of $17,500,000 by the end of that decade.  Now, that's a pretty big number.

Another Big Number

Here's a big number… a failure will cost on average about $250,000.  You might think that is high, but consider the hard costs and soft costs, they do add up.

Here's a few numbers to consider….

1. You need to interview someone at least 4 times to get a real picture of who they are.
2. A producer needs to rank at least a 7, 8 or 9 on drive or you're hiring an account manager.
3. A producer needs to complete at least 3 homework assignments for you to determine their work ethic.
4. A producer needs all 5 of these characteristics: Ability to deal with rejection; Ability to build relationships; Smart, Book and street coachable (or they won't learn from mistakes);  and Economic Drive (if not they will quit when they make more than they spend).

It's Not Just a Numbers Game

When you look at the big picture, hiring new producers is a numbers game, but not in the way you'd think about it.  It shouldn't be a high risk adventure.  It should be a predictable process.

Read my book “Winning Strategies to Find, Hire and Develop New Producers.”