Why do we need to set goals? I hate setting goals, because it makes me work hard – but that's a good thing. So, here is my philosophy on setting goals: Set a high goal, but not so high that you will become discouraged and quit. Then, break the goal down into smaller, more manageable pieces that will be easier to attain.
Goal #1: Close more cases
For example, say you've set your first-year commission goal at $100,000, but now you're saying to yourself, "How do I do this?" First, divide the goal into monthly, weekly, and daily parts. Your monthly goal becomes $8,333, your weekly goal is $1,923, and your daily goal becomes $385.
Now, you need to review your production numbers. For our purposes, we will assume your average case was $2,000 of premium with $1,000 of commission. Your goal is $100,000 in new commissions, so that means you'll need to write 100 cases. Sounds like too many? Break it down by the month; it's just a little over eight cases. Still too much? Break that down into weekly cases. Now your goal is just two cases per week. What is your closing ratio when you ask people to buy? The industry average is one buyer for every three asked. If yours is the same, you'll need to ask six people to buy each week in order to reach your goal of two new cases per week. That's just a bit more than one closing interview per day, which becomes your daily goal. Now, you can prospect for new clients with the rest of your time.
Goal #2: Close bigger cases
Maybe your case rate is low, and writing 100 new cases appears to be unattainable. No problem: If you wrote 40 new cases and generated $80,000 in commissions, your average commission per case would be $2,000. Your new goal is $100,000. Your goal now becomes 50 cases, or approximately one per week.
The alternative to more cases is bigger cases. In the above situation, the commissions per case would need to increase to $2,500 – but how do you generate this increase?
Raise your sights and the sights of your prospect. Don't just plan for today's needs. Look down the road five years from now, and plan for tomorrow. Consider inflation, future pay raises, the growth of the company, increases in company lines of credit where the owner signs personally, other key people in the company, and retirement planning goals. The list is long, and the needs are great.
