We have watched many young men and women, some barely out of college, develop into successful producers with lucrative careers ahead of them. Others have not fared as well: Industry surveys suggest as many as two thirds of new producers don't survive through their second years in the business. This article focuses on our experience with those producers who remained in the business for less than a year.

1. They were a not a good fit for the business. Given the dismal turnover rate of new producers, it's obvious that the sales side of the insurance business is not for everyone. Fortunately, test instruments can help us better predict an individual's potential for success. Managing for Success uses the DISC (dominance, influence, steadiness, conscientiousness) personal assessment tool to determine how the individual is likely to behave in a sales environment. It compares his “natural style” or way of doing things, with his “adapted style” or how he would have to alter his natural behavior to work within a sales environment. Too much “adapting” creates stress and lowers the possibility of success. The PIAV (personal interests, attitudes and values) assessment reveals what motivates the individual. Candidates who are money motivated, competitive and thirst for knowledge are ideal. 
2. They couldn't manage their time. The personal freedom associated with outside sales is attractive to potential producers. That freedom also is the No. 1 reason new producers fail. It shouldn't be surprising that new producers struggle with managing their time. After all, when we are children, parents tell us what to do; when we start school, teachers tell us what to do; when we play sports, coaches tell us what to do; when we have jobs, bosses tell us what to do. But when a new producer starts working in an insurance agency, typically no one tells him or her what to do. Establishing solid time management skills needs to be a No. 1 priority for new producers. They need close, daily supervision and an initially structured environment to develop these skills. The “sink or swim” approach to training new producers is one of the reasons so many fail. 
3. They didn't put enough time into the business. We're all familiar with the “work smarter, not harder” adage. New producers need to work smarter and harder. No one builds successful businesses working 40-hour weeks, and insurance is no exception. All new producers should understand that the first year will require total immersion into the business. This means no vacations, no extra days off around holidays, no leaving early on Fridays and leaving behind the 9-to-5 mentality. Where else but the insurance industry can inexperienced people, with no advanced education and no business loans, build their own businesses and in just a few years be earning an income equivalent to corporate executives—all while being paid? They must bring their time, their energy and their creativity to their businesses. Top athletes devote thousands of hours to refining their skills. Becoming a top producer requires the same focus and determination. 
4. They were “office potatoes.” This is the same as a couch potato, but found in an insurance agency, snuggled into a comfy, ergonomically designed desk chair. It's not enough for a new producer to just put time into the business; the time has to be invested in the right activities. Nearly all of those activities require the new producer to be out of the office. Office potatoes have reasons to stay in their chairs: They're working on a proposal, they have to call an underwriter, the weather is bad, it's Friday or a holiday week. New producers would be better off without an office. The more comfortable the surroundings, the more likely they are to hang around. Instead of a traditional office, provide a small work space for making phone calls and completing applications, and a conference room for meeting with clients. New producers should call on prospects and centers of influence all day, every day during business hours. Administrative work should be done before or after office hours. If it's necessary to meet with someone in the office, it should be done by appointment, the same as meeting with a client. This way, staff members will expect the producer and can prepare for the discussion, which saves time. The same approach works with underwriters if phone appointments are made in advance. 
5. They became quoting machines. A recent study reported that 31 percent of successful salespeople and more than 50 percent of average to poor salespeople had difficulty assessing the quality of leads. Newer producers especially struggle with when to pursue an account and when to walk away. Agency owners who evaluate producer performance by the number of quotes generated each month are making a mistake. This encourages producers to chase accounts that aren't going to close. The resulting poor closing ratio wastes the time of the producer, agency staff and company underwriters. Top producers, on the other hand, are much more discriminating about which accounts they pursue. They use tools such as SWOT (strengths, weaknesses, opportunities, threats) analysis to look for a good match between the companies represented in the agency and the prospects available in their marketing territory, and the DAQ (diagnostic appointment questionnaire) to determine which prospects they want to pursue. In addition, they establish the rules of the game with prospects so there's no question about loss runs, financial statements and proposal presentations. Their high closing ratios mean less time wasted and better relationships with agency staff and company underwriters.

Related: Read the article “7 Time-Management Tips and Tricks for Agents” by Ken Fields.