Many agents out there have heard of the 12 week year – I am not affiliated with the 12 week year company AT ALL… but in my agency, I lived by the 12 week year – The 12 week year mentality is basically this – Do more in 12 weeks than others do in 12 months.
How did we put that into practice? I looked at what most agents were doing in 12 months, and I decided I needed to do that every 12 weeks, so if most startup captive agents sell $250,000 in their first annual year, I need to do that in 12 weeks, and do it again 12 weeks later, etc. to where rather than growing only $250,000 in 1 year, I grow $1,000,000+ in one year, and all it takes is a clear process for how to get there.
So, as I talk through this article, that is the number that I’m going with. Your goals may be more or less than that… but that is a nice round number to work with, and you can take the points and strategies from this article and implement it with whatever numbers you need in your agency.
Now, in my agency, if we wanted to grow $1,000,000 in 1 year, that meant that every 12 weeks (every quarter), I needed to grow $250,000 in premium. Let’s take that a step further – That means every week, we need to grow just over $20,000 in premium. Now, in my area, I knew that when I looked at everything I sold over the course of a month, if I sold 200 items, that would equal around $100,000 in premium – It always ended up being like that, which told me that each item usually averages out to $500/item in my area. Your area might be more, might be less – But just stay with me here.
Now, if we need $20,000 in premium every week, that means we need – 40 items, right? At $500/each?
If we need 40 items, we need 8 per day, so between me and 2 producers, each of us need to basically sell 3 items per day, right?
Now, it just so happened, that because I only focused on people who owned homes, that would almost ALWAYS average to 3 items per household that I would sell to. A home and 2 car, or a home and a car, and an umbrella policy – Whatever they had, at the end of the month, if I sold 200 items, it would almost always equal out to 65-70 households, or 3 items per household.
So, let’s step back and look at that. What we just figured out is that if myself, and each of my 2 producers sell to 1 household per day, just one sale per day, we’ll hit $1,000,000 in premium in 12 months (actually, not even 12 months, we’ll hit it in 11 months, since 12 weeks times 4 is only 48 weeks. So, for us to hit $1,000,000 in premium in less than a year, we each need to only make 1 sale per day. When I saw that number, I was hooked – That’s insane, right? 1 sale per day –
So, let’s take that a step forward. In our agency, before getting heavy into referrals, our close ratio was always right around 20%, between leads, walk-ins, the referrals we got, etc. If the leads were 5% close ratio, and the referrals from client were 30%+, we seemed to always be averaging 20% overall at that point in our agency. Your numbers might be different, just take your usual close percentage, and stick it in there for you guys.
But, what did that mean for us? If each of us need 1 sale per day, that means that each and every day, I need to quote 5 people, and each of my 2 staff need to quote 5 people.
Our number is 15. The amount of quotes that we needed in our agency per day was 15. Your number may be much more, it may be much less, but that’s how you can figure out your number. I know I went through that quickly, so when we put this into your Agency Elite Inner Circle members area, watch is as many times as you need, but here’s the reality:
I realized that if we quote 15 new households every business day, we will hit $1,000,000 in less than a year.
The most powerful reality about this was that it helped us as an agency to completely change our mentality – No longer were we focused on SALES… we were focused on QUOTES. The numbers worked – As long as we focused on QUOTING, we knew the sales would come.