How to determine if your agency or brokerage has a true sales culture

Even though you might be able to show extensive evidence that your agency is highly productive, profitable, or well capitalized, how do you measure your “sales culture?”

You could be better off by acquiring a sales superstar than buying another agency.

Every year the numbers seem to get more outrageous. Pay levels for “impact player” athletes such as LeBron James and Tiger Woods continue to climb into the stratosphere. And it isn’t just athletes. You name the endeavor, whether it’s in the business, entertainment, or even the academic world, and there’s a near-universal phenomenon occurring: Impact player inflation. Despite the fact that it drives a lot of people crazy to hear that some people are making so much money, there’s a simple reason for the inflation: The impact players are worth it.

Here's a quick investment quiz: Which of the following investments will provide the best financial return over the next five years?
A.Microsoft stock
B.Coca-Cola stock
C.Citigroup stock
D.A newly hired Property & Casualty producer

The answer is D. No kidding.

Many agents tell me they're getting plenty of referrals and don't need to cold-call for new business. If you fall into this category, there's no need to read on. But if you want to grow beyond referral business, cold-call prospecting is a necessary means to that end. Yet there's a more effective (and honorable) way to do it than described above. It's all about your goal and your preparation for the call.

Open the way to sales success with these three keys to interacting with prospects.

Today, an insurance professional must be an information specialist. Access to information can be vital in all specialized areas of insurance. Every agency has numerous books, both those published professionally and those published as company manuals and promotional materials, which are reference tools enabling more effective decisions. But where are the materials when you need them? Ideally, in a library using a database program and an efficient cataloging system.

If you're a principal in a privately held insurance agency, establish a value creation quota for each shareholder. Here's how: A month before your next planning retreat, provide each shareholders with a statement showing the value of his or her share of the agency's stock. If you don't have an appraisal, simply use your best estimate.

Are independent insurance agents on the verge of extinction? On the MisFortune 500 list of endangered occupations? You might think so after reading some of the press. For a different perspective, Kevin Stipe offers his observations of current and past trends and market conditions to prove that we’re not necessarily going the way of the dinosaur and the door-to-door encyclopedia salesman.

Insurance agents and brokers have good reason to feel slighted. Like being stuck outside the New Year's party without an invitation, agents have had many reasons for envy as investors in other sectors congratulated themselves for another incredible year. The Dow Jones Industrial Average increased by a whopping 68% from 1996 to 1998, which was its strongest two-year performance since 1955. Even the insurance companies got invited to the party, with property and casualty insurers enjoying a 64% increase in value during the past two years.

Whether you watch the Super Bowl for the competitive drama or just for the commercials, Kevin Stipe asks you to consider these three similarities in strategy between championship caliber football teams and Best Practices insurance agencies.