Maybe your first year in insurance sales looked somewhat similar to mine?
After my first full year of selling insurance as a P&C agent in California, I only wrote $135,000 of commission from roughly 30 new clients. Not a bad first year for a “green” agent, but not a stellar year, either.
The average annual revenue size “per insured” for those 30 clients was only $4,500. Only $4,500 of total annualized revenue, per client. Therefore, I would have needed 223 total clients at that revenue size in order to achieve my goal of $1,000,000 in annual revenue.
That would have been a nearly impossible task to achieve for any agent in America.
Insurance Sales Techniques That Work
Halfway into my second year as a P&C producer, however, I made an important and necessary change to my personal insurance sales techniques. Or, rather, I made a critical change to the size of account I would prospect going forward.
What was the big change I made?
I decided to Think BIGGER.
I decided that—going forward—the very first policy I would ever write for a new client must be no less than $20,000 of annualized commission. So, if the first policy I wrote for a new client was a general liability policy, that GL policy must bring an annualized revenue of no less than $20,000.
This was the absolute greatest change in my insurance sales techniques for all my prospecting endeavors.
I know it would be an amazing change for you as well!
This change in thought forced me to prospect BIGGER accounts that were around $50,000 – $75,000 of total annualized commission. Frankly, it’s easy to understand why it works. If you want to make more money, focus on gaining the insured’s PERMISSION and start targeting larger accounts!
That year–the second year in my career as an insurance broker–I wrote $375,000 in new business revenue. I only had 15 new clients that year, but the average revenue, per client, was now at $25,000.
- Year #1: $4,500 new business revenue per client ($135,000 annual new business revenue)
- Year #2: $25,000 new business revenue per client ($375,000 annual new business revenue)
My advice to you?
Start targeting larger revenue generating accounts. Make this change in your insurance sales techniques right away. Do it immediately and focus on adding value so as to win the Broker of Record letter. It will be the absolute greatest decision you’ll ever make in your insurance sales training.
Break out of the status quo of “sales mediocrity” and target larger accounts!
SUMMARY: There isn’t much difference in the amount of work it takes to write a $4,500 commission account versus a $25,000 account. Therefore, think BIGGER and prospect larger accounts.
Thinking BIGGER is an important piece to the fastest, smartest, most ethical approach to building a $1,000,000 book of business.