A Marketing Organization’s number 1 priority should always be recruiting. The saying rings true, “no producers, no business” (and no profits). Just because you have a producer contracted doesn’t mean that they will write business with you or stay with you for decades. In order to maintain your current sales force, you have to continually be recruiting new producers just to keep up with the natural attrition within our industry.
At this moment, your competitors are tirelessly going after your stable of best producers, with bright new shiny objects, bigger payouts deals, and unbridled promises. Add into the mix that more producers are exiting the business due to retirement and death than ever before, which makes recruiting NEW producers to your organization more important than ever before.
According to recent surveys and polls it is estimated that the average amount of time a producer/advisor will remain active with a Marketing Organization/BGA is only three to five years. Assuming the higher end of the scale (five years), you can expect a predictable field force attrition rate of 20 percent annually. This figure may vary from organization to organization, but attrition is a fact that you cannot escape regardless of how good your company is.
Your goal as a marketing organization is to systematically surround your target market through all of the tools and channels available to you. If you don’t, your competition will.
Embrace your role as a “marketing organization” and be everywhere that the best producers are, whether it’s online, direct mail or industry trade magazines. Consistent and effective recruiting makes the difference between thriving organizations and those just surviving. It is said that “if you don’t grow, you will die.” Maybe for marketing organizations that saying should be “recruit or die.”