A good friend of mine, who is a senior marketing executive at a major carrier, once told me that “every agent you have will leave you. It might be 6 months, 5 years or even 10, but one day they will move on to greener pastures or just die on you.” That’s a scary statement, but unfortunately it’s true.
In order for a marketing company or carrier to reach its full sales potential, it must be in front of the market and always looking for new producers. In this industry, it is not uncommon to see 20% turnover of your producers annually. More than half of the annual turnover is typically caused by factors outside of one’s control, such as death, disinterest, lack of business, retiring or changing markets. But the fact remains that in 5 years, you will have to replenish almost all of your producers.