Super Agent

The 4 Dangers of Starting Out on Smaller Accounts

Many young producers start out their careers by selling and servicing lower revenue accounts, and eventually end up taking any business, regardless of profitability. Working on smaller accounts at the beginning can have some benefits—most agency owners and producers claim that the best way to get practice is by working on all opportunities. But often there are many more dangers than there are benefits. Here are four dangers to consider:

(1)  Fear of Letting Go: Once a relationship is developed, new producers have a hard time letting go. They become nostalgic about their first accounts.

(2)  Lost-Opportunities: Any time spent serving smaller, less profitable accounts means lost time and lost opportunities developing relationships with larger, more profitable prospects. 

(3)  Over-servicing: There is not much a producer can do to service or improve outcomes for clients who generate very little revenue—a producer’s time is valuable, and it should be spent focusing on more significant opportunities.  

(4)  Self-Doubt. After working on and with small accounts for an extended period of time, producers become reluctant and fearful of transitioning to larger, more complex accounts. Once this reluctance sets in, it’s difficult to shake. If producers are expected to be successful in working with higher and more challenging opportunities they must start relatively early-on in their careers with the guidance and help of senior producers and agency leaders.

Addressing this issue can be challenging, but when producers are successful everyone benefits. Clients are better served and their needs are addressed, lucrative opportunities are identified and captured, and agency revenue increases.

“Go for it and when you go for it you’ll learn what you’re capable of, what the potential is, [and] where the opportunities are.” – Michael Dell

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