Is Your Broker TRANSACTIONAL or RELATIONAL?

I recently kicked up my efforts to attend networking events, even when I don’t feel like going. We’ll always have to work against our own reluctance, or laziness. But once they’re overcome, half of my success is simply showing up to events with no agenda.

There's tremendous satisfaction in meeting like-minded professionals from the world of insurance, law, business, housing, etc. Besides helping customers make important financial decisions … I simply enjoy socializing and building rapport with people!

I’ve also run into a fair amount of competitors - other insurance brokers in my own industry.

Now, you might think I’d say, “Uh oh” when I encounter these people, right?

But you’d be mistaken. While many view competition as - well, “competition,” I take a different view. There’s more than one way to look at other people who work in the same role as you.

Sure, there are “short term benefits” for avoiding your competitors. If you keep to yourself, you don’t run the risk of them learning your methods. When they’re “out of sight, out of mind,” you’re not tempted to compare yourself to them. But these thoughts come from a scarcity mindset, not one of abundance.?

It also speaks to a larger issue:

Are you transactional, or are you relational?

Whether you deal in insurance, finance, home mortgage, or other service occupations - how you view customers and competition is extremely important. When you think about them, do they represent numbers on a spreadsheet, or living, breathing STORIES?

Being transactional has some advantages. After all, we all have bills to pay, quotas to reach, and bonuses to unlock. We need to know our numbers. If we ignore them, eventually we can end up broke, out of business and unable to serve anyone.

In the long run, however, the transactional mindset is “penny wise, pound foolish.”

New agents get “put off” when they run into competitors. They don’t yet realize how much room there is for collaboration, which breeds reciprocity. They adopt the transactional mindset of huge, publicly traded companies.?

Big Firms Have a Dark Side…

I don’t just mean insurance companies. Investment companies, real estate and banks all have their own versions of this. New brokers join them with dreams of rising in the ranks of a huge, publicly traded company. They think of corner offices, huge salaries, and unlimited paid time off.

However, they fail to reckon with the dark side. In Star Wars movies, the bad guys use red lightsabers. In business, bad guys use red tape.?

It can feel like going for days without real conversations. You get buried under forms and procedures, and making numbers add up. It’s almost impossible to provide the service you really want when you manage all that busywork.?

Transactional companies also refuse clients whose coverage falls below a minimum premium. If you dream of helping “the little guy” get good service - "Fuhgeddaboutit," as they say in New Jersey. When you work for a big fish, you serve other big fish.?

This is the world of transactional business - pushing past people, to push papers instead.?

I’m happy to say there’s a better way. It starts with one question:

What should you look for when networking with a broker?

This question applies to any professional you want to work with. I look for partners who care about the people behind the numbers. People dedicated to giving the best service possible - whether for insurance, financial advice, mortgage, accounting or any other similar product.?

Plus, I want folks in my network who actually like each other. Who wants to introduce a relational attorney to a transactional business broker? (Not me.)

Everyone has to make decisions about who they’ll work for and who they’ll work with. Do you want transactional partners, or relational ones?

Three cheers for the “bad guys”

Transactional relationships aren’t all bad. If you find yourself there today, that’s perfectly fine. It’s okay to “own it” if you operate on a transactional basis. When you’re craving a Whopper, you don’t need to become best friends with the person behind the counter at Burger King. You simply order food, and trade money.

But do you want that same level of relationship with professionals in your network? What about the company you work for? Perhaps you do. If so, my hat’s off to you - but I doubt I’ll show up at any of your events.

On the other hand, maybe that doesn’t sound appealing to you in the long-term. So …

Find relational people to work with.

Most people gravitate to this side of the coin. You’ll face temptation to treat people like numbers, and sometimes others will give you that treatment. But still, life’s better on the relational side.

Prioritizing people over transactions has the best long-term benefits. If I were you, I’d seek out these kinds of relationships as you build your professional network. I’d think the same way when applying for jobs.

What’s a relational broker like?

For one, relational brokers care about you as a person. They don’t just memorize your name or favorite coffee beverage to gain “relational equity.” They take time to hear your story, and learn about what’s going on in your life.

If you find someone asking for an update on something you barely remember telling them, you’re probably working with a relational broker.

Second, they value reciprocity… without keeping a tally. Now of course, we need balance in terms of professional favors. You shouldn’t give (or demand) 90% of the investment in any relationship, nor should you work with someone who does.

Relational brokers don't walk around with an abacus, adding up every favor they give and making sure the ledger’s at net-zero.

When someone does something nice for you, and you thank them, do they say, “I know you’ll return the favor someday,” or, do they say, “Don’t mention it”?

I’ll let you figure out which of those responses comes from a relational mindset.

Lastly, a relational broker considers their client, not their own career. I make sure people in my network obsess over helping the client thrive, not how to increase cents on the dollar. When you actually take care of the customer, the rest works itself out.

And as for competitors? I do my best to have good relationships with them. I've lost count of how many times I’ve passed along an account that I couldn’t handle to someone in my network. And they did the same for me later on!

I even enjoy meeting competitors at large, publicly traded companies.

“Wait!” I hear you say, “I thought they had their dark side?” Yes. They certainly do, but they also have those minimum premiums. What are they supposed to do, when an account is outside their wheelhouse?

If these people don’t work with accounts under a certain size, what do they do if they find one? Well … I can tell you what they do if they’re in my network!

I get referrals from friends at these companies all the time. And if I encounter a big fish I can't handle, I kick it back to those same friends. That’s what I call a mutually beneficial relationship.

I’m building a network of CPAs, insurance brokers, mortgage lenders, and similar services to work together and take our work to the next level.

If you’re proactive and truly care about your customers, you deserve someone in your network who can play well on your team and make things smooth for your clients.

If you’re interested in joining my network, let’s talk. Connect with me over LinkedIn today!