Agency & Producer Expectations – Help Needed

[HelpWanted]

Year 3 of my Indy P&C agency in Minnesota has me questioning the future. I’m already running out of energy after working 60 hour weeks for little to no income. I’m sales and service. My producer is focused on selling. Income isn’t at the level that I need; I continue to take on additional debt since the business is unable to cover the bills at home. Based on this board it appears that we are unsuccessful compared to most. I’m struggling to understand why.

What do most of you pay for a producer? What type of leads do you provide them? What type of monthly sales expectation do you have?

IF it was just you and a producer since day 1…..what should the book size be after year 1? 2? 3? 5?

Curious to know how far I’m behind the curve. What other options should I be considering to improve my profit and workload? Should I attempt to find another small agency and attempt to split a service rep?

Thanks in advance for any feedback.

 

[wwgsrevo]

what indy agency are you in MN? I am looking for advice in the independent agency side in MN specifically. I am currently a state farm agent team member

 

[johndf]

You may want to try posting this in the P & C Forum

 

[RichardCO]

Good Morning Help Wanted, Don't know your operation so I could be off base but... may I suggest that service staff is hired at lower cost than a good salesperson which frees you up to produce. Utilize staff for service and the easy sales that result from rewrites, referrals and other in-office sales.

 

[BADTROUT]

Year 3 of my Indy P&C agency in Minnesota has me questioning the future. I’m already running out of energy after working 60 hour weeks for little to no income. I’m sales and service. My producer is focused on selling. Income isn’t at the level that I need; I continue to take on additional debt since the business is unable to cover the bills at home. Based on this board it appears that we are unsuccessful compared to most. I’m struggling to understand why.

What do most of you pay for a producer? What type of leads do you provide them? What type of monthly sales expectation do you have?

IF it was just you and a producer since day 1…..what should the book size be after year 1? 2? 3? 5?

Curious to know how far I’m behind the curve. What other options should I be considering to improve my profit and workload? Should I attempt to find another small agency and attempt to split a service rep?

Thanks in advance for any feedback.

Hey there @HelpWanted CSR and office staff is usually a very regional question on how much to pay so I cannot really get into that part, but on producer staff, regardless of location, I would pay the same new and renewal. I start at 75/75 then 70/70 graduating down 5% per year until you hit 50/50 (5 year plan). Now everyone will have a different opinion on this but in exchange for that commission schedule, the producer needs to do ALL of their own finding and binding, but we take care of the overhead!

I also think you need to be in the selling business, and should consider some office support to free up your attention.