Referrals have traditionally been a premier source of new business for insurance agencies. When I was an agent, I loved referrals. It was an opportunity to build my business without actually selling. Just visiting with somebody who would likely buy. A great tool that all salespeople need to take advantage of and cultivate consistently.
I was recently speaking to a mid-size agency’s VP of Marketing who explained they follow a referral based system of selling. They do not cold call, they rarely advertise and do not leverage any other marketing tools or outreach program. He explained this system has yielded some success, but agency principals were not satisfied with annual growth rates. I told him referrals should always be one of the legs of your stool, but how do you expect to grow consistently standing on one leg?
You always need a three legged stool. Referrals, referrals and more referrals do not meet this criterion. Never ignore these opportunities – they close faster and more often – but make sure they are only one piece of the puzzle. Exclusively chasing referral business puts a governor on your growth.
Originally Posted on May 19, 2010 by John Scranton