In my last few articles, I discussed what’s brewing in Washington D.C. and the potential changes upon us. I continue to talk to brokers and scour sites for information. The reality is that no one knows for sure exactly what will happen, just that something definitely will.

How will you react? When will you react? What are firms in the U.S. doing right now?

A while back, I reached out to some of our international brethren in Mexico, Canada and England to gain some perspective and see what good ideas are happening in the insurance world outside our borders. All of the firms I spoke to deal with a government plan and yet earn a very good living. Much of what they do is very similar: they work with employer groups, handle employee claim issues, battle carriers on cost and service, and are seen by clients as an overall resource.

A slight but powerful difference was how these firms viewed themselves. Before I address this point, let’s briefly shift our focus back to the U.S. We talk to hundreds of brokers a day at Zywave. When asked to define themselves, we hear things like:

– We are an insurance firm.
– We don’t sell; employers come to us to buy insurance.
– We advise people who come to us.
– We are a service organization.

All very honorable statements. Read them closely and they give a strong statement of how we view ourselves and insight into the way the brokerage industry has operated for decades.

However, the single most powerful characteristic we see in innovative firms today is how they are redefining themselves: They define a brokerage operation as a sales organization that sells insurance.
What is the difference? Answers these questions about your firm:

1. Do you track Producer closing ratios?
2. Do you have a system that holds Producers accountable on sales activities?
3. What sales training have your Producers received in the last two years?  Ever?
4. Do you know how many cold calls or marketing touches your firm made last week?

A firm that defines itself first as a sales organization would clearly be focused on these basics. Yes, service is critically important. As a matter of fact, how you service clients should be a distinct marketing difference on how you sell your organization.

A fundamental difference in how brokers operate outside of the country (and innovative firms in the U.S.) is that they have no problem being defined as salespeople. They pride themselves on how they assist clients, help them with problems and act in an advisory role. With tighter margins and a smaller playing field, they recognize that they need to be continually focused on how to grow revenue. Often they are not only meeting with the employer, they are meeting with each employee for a few minutes and perform our version of worksite marketing — this is very lucrative for them and the brokerage operation.

Here are some things to think about if you are a sales organization first :

• You would have at your fingertips an account rounding report on every producer. We refer to this as “white space.” You should know the dollar amount if the Producer just sold everything they could to their clients.
• You would have your Producers perform mock demos. No excuses.
• You would have weekly meetings with Producers on opportunities.
• Account Managers would get bonuses on account rounding opportunities they bring to the table.
• Every prospect that your firm has worked with in the last six months would have a drip marketing campaign, touching them at least monthly.
• Every employee would understand that bringing in revenue is everyone’s job, not just the Producer’s.
• You would know exactly, through marketing, the prospects you should be going after in your market.
• The Producer with the top sales of the month should be personally thanked by the top dog of the firm, and given a certificate for a nice dinner out. Sales culture starts at the top.

Why is redefining your firm so important? With changes going on in the marketplace, who do you think carriers are going to want to work with? Without a doubt, they will be aligning with the players who are nimble, growing and bringing them business.

Now, I already know the toughest part. Many firms feel bogged down with their current compensation structure. I know of several who know they need to transform from “grow a book and ride it” to more of a sales culture. How do you do this?
Firms are beginning to execute a solution that is brilliantly simple to help ease the transition. If a broker historically got paid 40 percent, moving forward if they grow their book by 8 percent, they will stay at 40 percent. If growth is 7 percent and under, their new compensation the following year will be 36 percent.  Use whatever numbers you would like, but you get the gist of it. By the way, the higher the growth, the more they get paid. This type of compensation change recognizes the work they have done, but sets a new tone for the future.

Also, if there is no way you can get your “producers” to get after prospects, then hire an inside sales team. It is an economical way to get opportunity moving through your pipeline. Many firms have done it and we will put together a white paper to give you a blueprint for the process. Look for it down the road on AgencyFuel.

This is easy once you get started. Get the sales culture going — if a Producer does 115 percent of their plan, they get a Rolex watch. A Producer with the top sales of the month gets the coveted parking spot. The first Account Manager that account rounds an additional $20,000 in revenue gets a weekend getaway in Milwaukee. (Hey, c’mon it’s a fun place!) You get the idea.

One final thought: Think of your competition. If you redefine yourself as a sales organization, think of what they will be up against. Your Producers will be going after the best prospects in town. They will be highly trained in uncovering pain points and prospects’ needs. They will be armed with well thought-out, tight value propositions and be very good at overcoming objections. Based on the new plan and culture, they will be highly motivated to bring it in. Your competition is going to get the wake-up call of its life. In today’s market, it’s either “go big or go home.” 

At the end of the day, Washington is going to do what Washington is going to do. With a sales mindset, you will have the ability to be nimble, take advantage of the changes and increase your revenue.

To me, that actually sounds like fun.