Agency Structured Like a Law Firm Partnership

Oct 20, 2016

  1. Robert45673
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    Robert45673 New Member

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    I'm thinking about starting an agency that would be structured like a law firm partnership.

    Would an agency with the following attributes attract best-in-class Producers?


    1. The primary goal of the agency is to recruit best-in-class Producers and compensate accordingly.

    2. The agency’s sole focus is serving the Producers and by extension, the Producers’ clients.

    3. Producers automatically become partner when their book reaches a set revenue threshold.

    4. All partners share in agency profits (compensation plus profit sharing).

    5. The agency will deploy state of the art technology to support the Producer (and CSRs). A Producer spends half their time on non-revenue generating tasks (1000 hours per year). The technology will reduce that by 50% or more.

    6. The agency will deploy best-in-class inbound marketing campaigns to maximize inbound leads.

    7. An Associate Producer system will be implemented to nurture new talent to perpetuate the agency and provide a retirement path for Partner Producers.
     
  2. leevena
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    leevena Guru

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    I like it very much. 2 comments. The first is that if I were a producer/partner I would not want partnership determined solely on production level. Seems to me you paint yourself into a corner, I mean what if a producer does not fit in or get along with your group, how could you get rid of him/her?

    The second, and I realize this may be minor and my own idiosyncratic issue, but I do not like the the use of "best in class"...sorry. It is used so often today , and by many who are not best in class, that it turns me off.

    Best of luck, sounds like you may have a great future.
     
    leevena, Oct 20, 2016
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  3. cottonland
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    cottonland Super Genius

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    Why not just allow the producers ownership in their books of business?
     
  4. shawnmwalker
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    shawnmwalker Guru

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    #2 and charge than 50% of their commissions to do it......
     
  5. Robert45673
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    Robert45673 New Member

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    Thanks for the feedback...

    Point well taken on the use of buzz words.

    Re "fitting in" if the producer enters the agency as an "associate" there will be time to gauge producer's fit with the agency. If the producer enters the agency with a book that meets the threshold then I would anticipate some kind of vesting period before partner status is granted.

    In hindsight, "automatic partnership" is probably not in the best interest of the agency.

    Re comments on book ownership, we continue to debate that topic. There are good arguments for both sides of the issue.
     
  6. marindependent
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    marindependent Guru

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    I personally think your point three can be dangerous: "Producers automatically become partner when their book reaches a set revenue threshold."

    If all you require is a book to reach a certain point, you better be careful what you wish for. There always, at least in my opinion, needs to be a consideration for the character, personality, and the actual person.
     
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