Regardless of what you’re selling, the sales process is a numbers game. Your objectives need to be clear, unambiguous and as excuse-proof as possible—which is why breaking down the sales process and its objectives into simple components is a winning strategy, especially for new agents.

All sales success is grounded in productive activity: The more productive activity, the more sales occur. The key is to determine how much activity is required to hit your income objectives. To be successful, you better know which numbers you need to know, and you better know those numbers.

When I left the comfy surroundings of a salaried insurance carrier position for the land of risky potential as a retail producer in 1986, my goal was to reach $100,000 in commission income within my third year of sales.

First, I focused on what I needed to achieve to reach my goal. In the process, I came up with seven simple factors and one formula that I’ve been using for the last 40 years. By the time I started my sales career, I knew I needed to make 11,250 dials to earn $100,000—and so I did.

Ready to use your middle-school math skills to build your equation to success? To begin, here are the seven variables you need to consider:

1) The number of dials required to speak to a decision-maker. This constitutes a call.
2) The number of calls required to book an appointment.
3) The number of appointments required to get a binder.
4) The number of sales presentations required.
5) The number of sales presentations that convert to binders. This is your hit ratio.
6) The average commission percentage.
7) The average premium.

If your producer income goal is $100,000, here’s an example of how you could achieve it.

Apply your rates:

• Commission split: 60% agency and 40% producer
• Average commission percentage: 12%
• Average account premium: $10,000
• Average account commission: $10,000 x 12% = $1,200
• $1,200 commission x 40% split = $480
• $100,000 divided by $80 = 208 binder

Assume these things are true:

• 3 dials to reach the decision-maker
• 3 calls for each X-date
• 2 X-dates for each appointment
• 1 binder for every 3 appointments

Do the math:

• If you need 3 appointments to get 1 binder, you’ll need 624 appointments to get 208 binders.
• If you need 2 X-dates per appointment, you’ll need 1,248 X-dates.
• If it takes you 3 calls for each X-date, you’ll need to make 3,744 calls.
• To get 3,744 calls with a decision-maker, you’ll need to dial the phone 11,232 times.
• Divide and conquer = about 75 days of making 150 dials.

The mind has trouble with “I want to make $100,000.” Committing to a set number of dials is an intentional act—setting an objective of making 150 dials a day doesn’t leave much for the mind to misinterpret. The action required is clear: You either make the calls or you don’t.

From personal experience, I can confirm that modifications will be necessary as a new producer starts to close more business. Moreover, it gets tougher to find the time and discipline to make the calls. That’s understandable and normal.  

But the important takeaway is to break down your sales process into simple components. If service becomes an issue, set a clear objective to make service visits each month, and schedule the visits on your calendar. Don’t just think, “I need to make more service visits,” and leave it at that—chances are you will not make those calls.

Selling is an endeavor that requires discipline. Buckle down and make your objectives simple, tangible and excuse-free.

Arthur Seifert is president of Glatfelter Program Managers, a division of Glatfelter Insurance Group.