MRL #046- Why Most New Producers Fail

Our industry has a BIG problem.

We’re awful at developing new Producers.

Last I checked, roughly 9 out 10 new Producers wash out in their first 3 years.

If you ask most people in the industry they’ll tell you it’s due to a lack of work ethic.

But…

I Call BULLSHIT!

I think most new Producers are willing to do the work required to be successful.

In my humble (but correct opinion) I think the real problem is…

Most Producers in agency leadership today have no idea how to actually build a book of business (at least not from scratch).

It’s the proverbial case of the blind leading the blind.

Because the harsh reality is…

Most Agency Leaders Were Spoon-Fed Their Books from “Daddy” Or Other “Boomer” Producers

Meaning they were either:

a)Outright gifted business

b)And/or brought in on deals

Now a few years later, with fat juicy books and in a leadership position, they are tasked with training up the next generation.

But, how could they?

If they don’t know how to actually build a book from scratch themselves…

How in the HELL are they gonna teach someone else how to do it?

Which brings me to the point of this letter.

Monday, Micah and I hopped on a call with a struggling Producer who we’ll call John.

After 10 minutes on the phone with him it became very clear that John is a prototypical new Producer…

Smart, coachable, and eager to write new business.

But, he’s 2 years in and well behind his validation target.

To be blunt…

John Has 12 Months To Write $150K Or He Gets Canned

His story is a perfect example to illustrate my point.

John was brought in with no network, no mentor, no perpetuated business.

His boss gave him a pat on the butt, little to no advice, and wished him luck.

It’s no wonder, he’s 2 years in and only written $50K.

Now in Year 3 he has to pull off a Hail Mary to keep his job.

And I’m not kidding you when I say I’ve seen this same story play out over and over and over…

And over…

And over…

And over again.

It’s chicken shit… plain and simple.

Yet agency leaders all across the country sit there scratching their heads, totally dumbfounded at their new Producer turnover.

And you hear them say shit like…

“Well, I guess this generation just doesn’t know how to work hard.”

No, you pompous, dishonest prick…

“You threw a man overboard and told him to swim… meanwhile you never told him how to swim because you were given floaties.”

Again… straight chicken shit.

Ok, back to our call with John.

If you’ve followed us for any amount of time you know we’re fierce advocates of cold calling.

And with John’s back against the wall and shortened timeline it’s exactly what we suggested.

Here’s The Plan We Laid Out For John To Hit His Target

1. Pick a niche

2. Buy InsuranceXdate

3. Target xdates 4+ months out

4. Shoot for 200 calls per week

5. Use our cold-calling and meeting scripts from Producer Playbook

That’s it.

That’s the plan.

It ain’t sexy, but if John executes it, he’s gonna hit his number.

But, let me be clear…

This plan isn’t just for John.

This plan is for any Producer whose building from scratch.

Sure you can write some business networking, hounding family and friends, and rubbing elbows…

But you probably won’t write enough in the short window of time you have to reach validation.

I would know, I failed miserably trying all that.

And I’ve talked with hundreds of other Producers with the same story.

So to wrap this letter up…

Let me lay this out for you in the simplest terms I can:

Most Agency Leadership today can’t help you.

They built their books with different advantages.

You’re Gonna Have To Build From Scratch Using Cold Outbound

I’m sorry.

I know it’s harsh.

But, it’s the truth.

You’re gonna have a tougher time than most of your slightly older counterparts in the office.

Better that you know the truth, though. That way you know what you’re really up against.

Ok, that’s enough ranting out of me.

I’ve pissed off enough people for one night.

Oh, and if you are one of the lucky ones gifted your book and you’re reading this letter… don’t be butt hurt.

Just own it, and be honest about it.

The longer Producers obfuscate the truth, the longer our industry has to deal with 90% turnover.

Do everybody a favor, and pull the curtains back.

See you next Sunday.

Kick ass take names,

Max “Don’t Shoot Me I’m Just The Messenger” Revenue

P.S. If you found this letter helpful… there are 3 other ways we can help you:

1. The Producer Playbook- The Step-By-Step Guide To Building A $1,000,000 Book of Business (From Scratch)

2. The Max Revenue Show- Our weekly podcast (available just about everywhere).

3. The Max Revenue Channel on YouTube- Weekly videos from Micah “The Zen Master of Commercial Insurance” Salas, including his new series “Diary of a New Producer.