Tag Archives: Persistency

Persevering Through a Sales Plummet

Persevering Through a Sales Plummet

When you have a career in sales, hitting a few sales slumps every now and then is an unavoidable fact of life. These slumps occur because of a variety of factors, from the economy to your sales pitch, making it difficult at times to climb out of the rut and start selling again.

When you’re going through a rough patch with sales, it’s easy to get discouraged and worried that you won’t get back to a place where you are selling consistently and feeling successful. While getting discouraged seems like the natural reaction, it’s vital – for your sales career, at least – that you remain positive and continue on, making it your mission to succeed.

That said, staying positive and persevering through the rough patches is easier said than done. When you hit that low point, you will be tempted to let the negativity get the best of you. At National Agents Alliance, we are convinced that staying positive, being motivated, and surrounding yourself with people who will encourage you are essential parts of being successful. We’ve got some tips to keep you pushing forward when sales aren’t so hot.

  1. Stay positive– We’ve already touched on this a little, but we want to go a little more in-depth about this tip. So, you’ve been at the top of your game for a while, but lately your sales are hit-and-miss and people who used to produce less than you seem to be lapping you. You’re feeling kind of discouraged, wondering why you’re not selling like you used to. As hard as it may be, try to constantly remind yourself that “this too shall pass.” The more aware you are that this is just a “phase” of the salesman’s career, the easier it will be to work through. If you let yourself get down and discouraged, you will be so worried about your sales performance that you may blow the sales calls you do go on. Stay positive and remember your prior success – making room for negativity will only extend the life of your sales slump.
  2. Stay calm– In order to successfully stay positive, you have to master the task of staying calm, as well. When your sales plummet, it’s easy to instantly think of all the things that could go wrong as a result. Your mind may scroll through a list of expenses and responsibilities, or you may worry about your rank or a contest you are working toward. While these things are important, remaining calm is a surefire way to “get your ship together” and work toward climbing out of your sales rut. If sales aren’t great, freaking out will not help. The best way to get out is to keep booking appointments and going on sales calls, remaining calm and continuing to serve your clients. Your confidence and genuine care for your clients will show, and your sales will pick up. Step back – don’t overanalyze or constantly compare yourself to others. Keep working toward your goals and you will achieve them.
  3. Stay alert– If you have remained calm and positive and booking calls but still not selling, take a look at a few factors that may be determining your success or failure. Some things to evaluate are: your sales pitch and sales style, your clientele and the products you are pushing. Have you recently changed your sales pitch or style? Are you being too pushy, or not pushy enough? Are you trying to sell final expense to a 20-year-old? If you are not pitching the appropriate coverage to the appropriate age group, you may be experiencing sales issues because of that. Did you formerly take a personal approach to your sales pitch, and now you’re taking a more salesy approach? You may be trying a new trick that simply isn’t working for you. Or maybe your sales style is outdated. Try switching things up if you’ve used the same style for a while, or try reverting back to your old style if you’ve changed recently. Stay alert and aware of the things you do and you will be able to see what changes you have made that may or may not be working.

Reminding yourself to stay positive and calm will make the process of getting back into your sales groove easier and less stressful. Surround yourself with people who will encourage you and give you advice, and you will be moving forward in no-time. Persevere and keep succeeding – that’s The Alliance way!

How to Calculate Persistency and Placement

In the life insurance industry and at National Agents Alliance, we use placement and persistency to measure the quality of your performance. The concept is very simple. If you can’t get policies placed or keep policies on the books your persistency, placement and income falls with it. Whereas, if you can get policies placed and remain on the books, your persistency and placement rises along with your income and recognition within NAA.

To get a better understanding we will break down how to find your placement and persistency:

How to calculate placement rate:

First it is important to understand that quantity does not equal quality.

If you submit 10 cases but only eight cases have been placed and made it past the Free Look period (typically 30 days, but some states and products may vary), you take the number of placed cases over the number of submitted cases and divide.

Placement Calculation

Let’s remember that quantity doesn’t equal quality. For example, you increased the number of cases submitted to 100, but for one reason or another 30 cases were not placed. When you put 70 placed cases over 100 submitted cases your placement rate is only 70 percent, which is not better than only submitting 10 cases and placing eight.

Quantity vs Quality

The only way to increase your placement rate is to increase the number of placed cases over the number of submitted cases.

How to calculate 4 month persistency:

To calculate persistency you start with placed cases (not submitted business), which has made it through the Free Look period and are active with premiums paid to date.  If you placed 10 cases and only seven cases earned four months of premium then you have a 70 percent 4-month persistency. You must collect premium for all four months on all 10 cases in order to have 100 percent 4-month persistency.

Persistency Calculation

How to calculate 13-month persistency:

Take one month’s worth of business that has gone through the Free Look period and has stayed on the books.  If all of your cases have stayed on the books and premiums have been paid every month up to 13 months, then you have 100 percent persistency.

For example, if in January you placed 10 cases and in 13 months all 10 cases are still on the books, then you have a 100 percent persistency.

Persistency Calculation 2

You cannot determine your persistency in the 12th month, because you need to ensure that premiums have been met for the 12th month in order to calculate your persistency for that year. The same goes for business written in the second month; you have to wait until 13 months later to calculate that persistency for the second block. At the end of 25 months, you then can calculate your persistency for the whole years’ worth of business.

What is Persistency?

While persistency can mean different things depending on whether it’s used describing a person or as an insurance industry term, both definitions are quite similar.  Persistency is an important concept to understand in this business and is used as a common measure of performance.  Sometimes insurance can be a confusing road to navigate, so you may think the concept will be difficult to grasp, but don’t worry! National Agents Alliance President & CEO, Andy Albright, breaks it down for you in a quick and easy to understand way in the video above!

Check it out, and let us know in the comments here or on the National Agents Alliance Facebook Page (NAA on FB!) if you have any questions!

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