Consultative Broker Briefing - Nothing Happens Until Somebody Sells Something

One of the oldest adages in sales is “Nothing Happens Until Somebody Sells Something.” As a young producer I remember the first time I heard this. Truthfully, it made me proud to be in production. I realized that unless somebody creates revenue, nothing else happens. Everything inside your firm depends upon one thing, your ability to attract and retain new accounts.

This is especially true in the “soft market’. As the prices and commissions erode it becomes harder and harder to build a substantial book. It is very difficult for you to run fast enough to replace the revenues you lose as your book erodes because of falling prices. Notice I said difficult, not impossible. In fact I can introduce you to hundreds of producers across the country that are still growing their client base, even in these difficult times.

As many of you know, I was a highly successful producer/broker during the 90’s. At that time, the prices in the marketplace were falling almost weekly. (For a number of years!) The senior executives of the mega brokerage I worked for constantly reminded us, “The marketplace is what it is”. In other words, “stop complaining and get to it!”

In order for you and your organization to prosper in the coming years you will not have to work harder, simply smarter. I know you hear that all the time, but here is what it means in the real world:

Know your Value Proposition. As a producer you have one unalienable right . . . to choose your prospects. A smart producer selects only the prospects that respond to their value proposition. They do not “reinvent the wheel” or change their business style for each prospect.
Focus your efforts on larger accounts. A smart producer understands that in most cases the hard market is over. As the revenues fall on accounts that were artificially high, they focus one or two rungs higher. They understand the need to get ahead of the pricing curve before it undermines their entire book.
Increase your prospecting activities. During the hard market, virtually every prospect wanted to talk with you. These buyers perceived that perhaps you could provide them the magic wand that their current broker couldn’t. For the most part, those days are over. Smart brokers quickly sift through more opportunities to find the nuggets.
Sharpen your Consultative Brokerage® sales skills. The hard market really dulled our sales skills. During that time, many of us spent more time “placing” and finding markets than we did creating new clients. Smart brokers are learning “Consultative Brokerage” as a “win/win” sales process that allows them to differentiate themselves.
Develop an expertise. During the softening marketplace every jamoke with an insurance license will be out trying to write the small and medium vanilla risks. A smart broker develops an expertise in either resource delivery (i.e. comp accounts) or industry specialization (practice groups), that allows them to replicate their efforts at a high level from one prospect to the next.

No matter what the industry pundits say about the potential for hardening prices, don’t you believe it. (Except in coastal property and some professional liability.) Therefore, a smart broker should expect the continuing soft marketplace to erode their incomes. The only antidote is an elevated flow of new business. Remember…nothing happens until somebody sells something!