5 Part Process To Avoid Failure WIth Insurance Sales Candidates | Insurance Agency Playbook

Join us for today’s podcast with the Insurance Dudes as they discuss the 5 frameworks that make up the talent acquisition strategy!
Learn how each component framework weighs in on the whole strategic process.
Jason and Craig believe any agency can get results if they stick to all five components. If an agency is pushing 80% on ALL five components, it is better than pushing 100% but only on 4 components.
Learn how Lead acquisition, activation, sales conversion, sales optimization, and lastly talent acquisition can help your agency build a symbiotic relationship between your hiring and your sales.
📻 Tune in to figure out how consistency, investment, and focus on long-term value can help your agency become a revenue-generating machine with the Idudes!

The Insurance Dudes are on a mission to find the best insurance agentsaround the country to find out how they are creating some of the top agencies. But they do not stop there, they also bring professionals from other industries for insights that can help agents take their agencies to the next level. 

The Insurance Dudes focus on your agency’s four pillars: Hiring, Training, Marketing and Motivation! We have to keep the sword sharp if we want our agencies to thrive. 

Insurance Dudes are leaders in their home, at their office and in their community. This podcast will keep you on track with like minded high performing agents while keeping entertained!

About Jason and Craig:

Both agents themselves, they both have scaled to around $10 million in premium.  After searching for years for a system to create predictability in their agencies, they developed the Telefunnel after their interviews with so many agents and business leaders.  

Taking several years, tons of trial and error, and hundreds of thousands of dollars on lead spend, they’ve optimized their agencies and teams to write tons of premium, consistently, and nearly on autopilot!

LEARN MORE BY Registering for TUESDAY’s LIVE CALL With The Insurance Dudes!

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Transcript

Speaker 1: 0:00

Hey there insurance dudes.

Speaker 2: 0:01

Jason Feldman here and Craig Bretziger Today. We're tackling a pain point that so many agency owners face Nobody's showing up for interviews. Sound familiar, oh man.

Speaker 1: 0:13

It's the worst. You've got leads coming in, policies to write and you're desperately trying to grow your team, but crickets when it comes to hiring oof. So we are going to dive deep today into talent acquisition and then show the differences that we've seen by following this talent acquisition framework.

Speaker 2: 0:35

Insurance dudes are on a mission to escape big handcuff by our agencies.

Speaker 1: 0:40

How? By uncovering the secrets to creating a predictable, consistent and profitable agency sales machine. I am Craig Bretziger, I am Jason Feldman. We are agents, we are insurance dudes.

Speaker 2: 0:56

Absolutely. Hey, I've been there too. Back in 2019, two weeks after opening my third location, I was on a super short fuse. We needed results and we needed a fast, but guess what? Everyone left.

Speaker 1: 1:11

Ouch, that must have been a tough pill to swallow, was it buddy?

Speaker 2: 1:16

It was, but it was also a kick in the pants. I needed to really focus on installing the talent acquisition component of the telefunnel, and that's what we're diving into today. So there's the five frameworks that make it up, and then we're going to look at the talent acquisition framework.

Speaker 1: 1:33

That's right, and here's the key takeaway Lean in. Anyone will get results with leads if they stick to all five components, and that's lead acquisition, lead activation, sales conversion, sales optimization and, of course, what we're talking about today talent acquisition.

Speaker 2: 1:55

Oh, and I can't stress enough Any time we've seen an agency struggle, whether it's our own agency or anyone we've helped. If they fall in short, it's because they're lacking one or more of the five areas, and it's costly. It's very costly.

Speaker 1: 2:12

Absolutely. And here's the thing A lot of agents get hung up trying to perfect one of the components before moving on to the next, but that's a big mistake.

Speaker 2: 2:25

One hundo, and I'm talking the red 100 with the lines under it. It's better to be at 80% of optimal in all five of the areas than 100% in just four. Trust us, we've seen it time and time again.

Speaker 1: 2:39

So let's touch on four of the frameworks from the telefunnel and how they work together and create a symbiotic relationship between hiring and sales.

Speaker 2: 2:52

OK, so number one is lead acquisition. So, since we have a solid team in place, we have to have consistency with our lead vendors. So we learned that the better and more consistent you are with your lead vendor, you're going to get better prices and better consistency from them. So it's like not turning them on and off is going to actually end up helping you in the end. Yes, totally. So what's?

Speaker 1: 3:16

next Lead activation. What is lead activation? Well, let's just skip talent acquisition for now, because that's what we will dive into shortly, and look at sales conversion.

Speaker 2: 3:33

Oh, gotcha, oh baby yeah. So sales conversion improves so much, partially because of the demonstration we're putting on right. So when we do the interview process, we're bringing people through and they're seeing the whole thing in action. They're seeing leads coming in, they're seeing all the stuff. So now the candidate is excited, they are excited.

Speaker 1: 3:56

And, of course, since better expectations are set, they just do better because they know no different. Oh right, so we just focus on getting them to capacity.

Speaker 2: 4:11

Yep. And then the last part, sales optimization. So I like to think of this as the role we should be playing and that we didn't realize actually existed. We need to be running the daily meetings, we need to be watching the analytics, tracking and measuring, motivating and, of course, unlocking our own freedom by doing these things.

Speaker 1: 4:30

Okay, mr Craig. What about talent acquisition?

Speaker 2: 4:34

Oh, I never thought you were going to ask. So this is the hiring process, and instead of going into the step by step, let's look at what we noticed when we actually shifted to this. We'll get into the step by step at another point, but I think it's more important to understand the why behind it.

Speaker 1: 4:52

Totes McGotes. Okay, so let's break down the numbers. For a $40,000 producer in our current system, we offer an $8,000 base salary plus commissions. Each month, we invest $7,000 in the marketing spend and allocate $500 for, you know, food prizes and spiffs to keep our team motivated Right and so the $8,000, just taking the worst case scenario out of our pocket, right, their base plus their commission.

Speaker 2: 5:28

And then here's where it gets interesting. Our average employee quotes 10 leads per day, right, so that stays when they do that. They're staying with us an impressive two years and this is actually steadily increasing over time. So now, over that period of time, the lifetime value of your employee is remarkable. We started looking at, at at just how much more we made because they stayed longer. It was really interesting. They produce. Let's say they produce 25,000 their first month, 25,000 their second, 30 in their third and then 35 in the fourth, and then it's just 40. Now, if you're, if you're playing along at home, probably want to write that stuff down, but you can just hit, remind them and listen to that Sure.

Speaker 1: 6:14

And when you add all that up, it equals to $915,000 in premium. Even with a conservative 75% retention rate and an 18% new business and 7% renewal commission, that's $420,000 in revenue. Holy smokes from one producer, yep, now let's let's look at those costs.

Speaker 2: 6:40

Okay, so we're going to estimate the 8000 for the employee, right? So we're going to say I'm doing a 4,000 base which is super high, like that's a high base and that's going to attract people. And then at our top payout at 40, when if somebody writes 40,000, which is about you know, we get some people up in the 50s but but for the most part 50 is a really, really strong person that's about 4,000 in commissions. So there's that 8,000. So, plus 11,000 in spiff's, 7,000 per month, which we said. So if we're looking at all of those, all those costs all added up, we're looking at 371 K in costs Over that same period so when you subtract the cost from the revenue, you get a net lifetime value of 49,000 $49,000 per licensed sales professional.

Speaker 1: 7:33

And that's not all. They're grown. They've grown the book by close to two million, or close to a million in just two years. So even accounting for non renewals and added three right around, let's say $36,600 in bonus money.

Speaker 2: 7:53

Yeah, impressive, right? Big difference so. So then we looked at what we used to do. So here's our typical old way of doing it. Because I wanted to save money, I'm trying to save money, I'm worried about about the pay and and watch how this actually hampered our growth by trying to save, so I Used to offer $2,500 base salary, which wouldn't attract a lot of people, to tell you the truth, and we weren't buying any leads, so I would make them make dials. They're calling all day long on leads so great. I'm saving tons of money on marketing. Right, I'm not spending this, all this money on marketing. But what happened? They're quoting two to three households a day at tops, like they couldn't get past that. They're writing 15 to 20k a new business and their average lifetime with the agency was six months. They're burned out.

Speaker 1: 8:42

What were you? A slave driver, mr Craig?

Speaker 2: 8:45

I don't know that you could say that anymore, right.

Speaker 1: 8:49

So let's, let's move on. In that scenario, average lifetime premium was 70,000, right, with an average lifetime revenue of 32,000. Yeah, the average lifetime cost was 16,000, including 2,500 per month for the employee and a thousand dollars in bonuses. That leaves an average lifetime value of just 16,000 in revenue.

Speaker 2: 9:17

Horrid, horrible, horrible. So we're talking three, three times. Right, that's a staggering difference In in the results there, right that you're gonna get net.

Speaker 1: 9:31

Yeah, absolutely, and the best part is our employees are happier and they're more productive and staying longer. Yeah, really is the ultimate win-win situation.

Speaker 2: 9:41

So if you're looking to take your agency up another level, you know, take a look at this. This is, you have to take a real hard look at your talent acquisition strategy. Consistency, investment and a focus on the long-term value is what makes a difference, but it's really critical.

Speaker 1: 9:58

That's it. That framework will will save you a lot. So thanks for joining us today on this episode. Until next time, keep on crushing it in the old insurance world. You got this, remember? It's not about perfection, it's about consistency working on all five components and continually Improving. Oh, I thought you just wrapped it up, mr Jason.

Speaker 2: 10:22

What a great show. It's good enough.

Speaker 1: 10:24

That's what she said, thank you.