The 25% Rule
I think most Agency Owners understand that lead generation at the agency level is changing. Consumers are much harder to reach, leads are becoming more expensive, laws are constantly changing regarding telemarketing and some carriers are even competing with their agencies for leads. So what do you do to insulate yourself from this craziness create stability with your lead generation?
You must develop relationships with referral partners or what I refer to as Centers of Influence or COIs. These people are in a position to consistently send you business on a monthly basis – loan officer, processors, realtors, etc.
I started my agency from scratch and built it to over $40M dollars and it all started with developing COIs. I have probably written more business from referral partners than any other lead source and it’s not even close. One thing that has really helped me to have long term relationships with referral partners is the “25% Rule”. That rule has also saved me a ton of time avoiding time sucking relationships.
Here’s the rule, and it has 4 parts:
- 25% of the people LOVE YOU no matter what you do.Now of course you need to be prompt with quotes, binders, etc., give great communication and follow up on their leads, but these people are the dream to work with and will forgive you of the occasional “Oops!” (We all have those from time to time)
- 25% of the people DON’T like you, no matter what you do. Even if you toss these people gold coins, they’ll complain that you are throwing something at them.
- 25% of the people LIKE YOU, but are on the fence, and at the whiff of an issue of any sort or size, they fall into the camp of “DON’T LIKE YOU”. These are the referral partners where “you are only as good as your competitive position.”
- 25% of the people DON’T like you, but are on the fence, that if you juggle just enough bowling balls, they like you for a period of time, but soon as you drop one of the balls, they don’t like you again.
The secret to this strategy is to find and hang out with the 25% that love you no matter what! These referral partners will be long term and lead to significant growth in your agency! Working with and trying to get referrals from the other 75% is wasted effort and leads to a life full of discontent as they suck the energy right out of you.
They key to all this is identifying who is in which group, which takes a bit of time. Oh, and you must stay compliant!
I have found that to do this requires a bit of patience and requires strategies that put you in front of quality prospective referral partners (we can help with specific strategies) as it’s all a numbers game.
The more COIs you meet with, the more of the “25% that will love you no matter what” you will find.
Keep in mind that a referral partner that loves you will typically send you 10+ leads per month. Your close rate will be much higher with these leads than any other lead source you have, and these prospects will be easier to bundle with autos and umbrellas. It is very possible to generate 20 policies per month from one single referral partner. Want 100 extra policies per month? Find 5 referral partners that “Love you no matter what”!
Sounds easy, right? Well, it can be if you follow the right steps and put in the work! And NOW is the time to make this a top priority!
To your success,
If you would like help with a step-by-step proven plan to have epic growth, without all the “craziness, all while only working with your “25%”, click here schedule a consult with my team today and let’s chat.