Promote an account manager only if they have already shown they can hunt new business; servicing a book and winning new accounts are different jobs.
I get this question from agency owners all the time. You need new business coming in, and the person you trust most in the building is your best account manager. Clients love them. They know every policy on the book. So why not hand them a producer title and let them go?
Sometimes that works. A lot of the time it doesn't, and the owner finds out months later, after the service seat has started to slip and the new business still isn't there. Let me walk you through how I'd think about it.
Can a great account manager become a producer?
Yes, some can. But being great at account management doesn't tell you much about whether someone can sell. Like I tell owners, "servicing a book is a different job. It's account management."
Your account manager is wired to protect what you already have. They answer the call, fix the problem, keep the renewal. That's a real skill, and it's a big reason your retention looks good. A producer has to go find people who have never heard of you, get the meeting, and win business away from someone else. Rejection is part of the daily routine.
So the question isn't whether your account manager is good. You already know they are. The question is whether they've ever gone out and brought in an account nobody handed them.
When does promoting from inside work?
It works best when the person has already been hunting a little, even without the title. Maybe they've rounded out accounts with lines the client didn't have. Maybe they've picked up referrals from clients and actually closed them. Maybe they keep asking you to let them go after new business. That's the person I'd bet on.
It also takes a plan for the seat they leave behind. If your best account manager moves into sales and nobody steps in behind them, your clients feel it right away, and that's the book paying your bills.
And give them real support. Somebody needs to coach them on prospecting and pipeline, because they won't pick that up from doing service work, you know?
When should you hire an experienced producer?
Hire from outside when you need new business soon and nobody on your team has shown they can go get it. An experienced producer already has the habits. We help agencies hire "top producers who know how to build a book from scratch. They've got the process down, not just a Rolodex of warm relationships."
That last part matters. A producer who only moved a book of warm relationships from one agency to the next may stall once those relationships run out. You want the one who can build again in your market.
The catch is that those people are hard to find. I say it all the time: "the strongest producers are the hardest to reach because they're so busy out there closing, growing their book." They're not reading your job post. Somebody has to go out and headhunt them. If you want more on that, here's how to recruit insurance producers.
Outside hires can miss too, of course. If you've been burned before, read why insurance producer hires fail before you start the next search.
How do you test someone for new business before you decide?
Don't decide on a feeling. Test it.
If it's your account manager, give them a small, real target before you change the title. A short list of prospects, a set window of time, and a weekly check-in on who they called and what happened. You'll learn fast whether they like the hunt or dread it. And keep their service work covered while they try, so your clients don't pay for the experiment.
If it's an outside producer, dig into how they won their business. My first question is always "How did you do that?" A real producer can walk you through how they found the account, how they got in, and how they closed it. If the answers keep coming back to "the client came with me," that's a book mover. You want a builder.
Either way, a wrong call costs you. You lose months, and then you start the search over. Here's more on the real cost of a wrong sales hire.
Promote from inside vs hire an experienced producer
| Promote from inside | Hire an experienced producer | |
|---|---|---|
| Time to first new business | Usually slower, since they're learning to prospect while they ramp | Usually faster, if they've already built a book from scratch |
| Risk to the service seat | High. Their current clients need a new owner | Low. Your service team stays where it is |
| Cost | Lower to hire, but you pay for the ramp and for backfilling their seat | Higher to hire, and you pay for the search |
| What to test first | Whether they have ever won an account nobody handed them | How they built their book, and whether they can do it again in your market |
At the end of the day, you're choosing who brings in your next account. Pick the person who has already proven they can.
FAQ
Can an account manager become a producer?
Some can. The ones who make it have usually been hunting already, through referrals or rounding out accounts. Test them on real prospects before you change the title.
Is it cheaper to promote from inside?
It can look cheaper up front. Count the time it takes them to ramp and the cost of covering the service seat they leave.
What's the biggest risk of promoting my best account manager?
You can lose a great account manager and not gain a producer. Their clients feel the change first.
How do I know if an experienced producer can really build a book?
Ask them how they won specific accounts. Builders can explain their process. Book movers mostly talk about the relationships they brought with them.
Do I need a recruiter to hire a producer?
If a job post brings you strong producers, you may not. The best producers are usually busy selling and not looking, so reaching them takes headhunting. See our insurance sales recruiters page.
Not sure your account manager can hunt? Book a free market read.
Not sure they can hunt?Book the call.
Want a read on whether to promote from inside or hire a producer? We’re happy to walk through what we’d look for.