Contemplating hiring Agent/Producers

[warnerins]

After years in this business and feeling like the place would just shut down and dry up if I didn't have my hands on every transaction and application, I am contemplating hiring agent/producers.

I have read enough and understand the different compensation options. commission splits, renewal splits, base pay with commission splits....I get that part. Will probably offer two different options that the agent can feel comfortable with. However any suggestions that currently works well for you would be appreciated.

I think I can track down and advertise the position effectively. That is after I decide if I am going to hire currently licensed agents or search for the right individuals to get licensed. I have read enough threads in this forum and believe that I am leaning tward licensed individuals. Any suggestions would be appreciated.

The questions that I have (because this is uncharted water for me) are:
1. Because we have so many carriers, how complicated is it to get the sub-agent code in force. The paperwork to get this done with 2 dozen carriers is going to be overwhelming. 2. When commission statements arrive are they seperated by agent code or does this have to be done in-house.
3. Because there are several agents writing under different codes, is it possible for CSR's to enter a master code on the carrier website to pull up the whole book of business. If not, how is matching the client to the correct writing agent log-in code on the carrier website done(for taking payments, answering questions, etc...).

I have a million questions. What is the potential premium increase on E&O policy? Do I split this cost? Is there a cookie cutter non-compete doc that I can get ahold of or do I spend the 250/h to have my attorney draw it up?

Help!!! I need a Mentor!!!

 

[saieddie]

We have a couple carriers that we write and quote all business under the agency code and just put the agent/csr's initials in as the person doing the quote. Other carriers give all the people in the office sub-agent codes. Getting the codes aren't a problem, and the commissions get broken out on each commission statment.

I'm not sure on the e&o. Metlife made us sign up for our own e&o policies and pay for them via payroll deduction. The independent agency I'm with now, just added me to their agency policy and I don't pay anything.

Whats your compensation model look like? The first year for my agency is going to be tight, but I think I've got a producer I can poach from another agency that I can hire on a commission only basis. I was thinking of giving them ownership of their book by letting them purchase it back from me for 1 years renewals when they want to leave, or giving them an ownership stake for every year we are profitable.

 

[lisar1208]

We too write for several companies and have 4 different producers. Depending on the company they either have sub-producer codes or just have a number assigned to them so when the commissions statements come in we know who wrote what.
It is not a hard process.

 

[warnerins]

We have a couple carriers that we write and quote all business under the agency code and just put the agent/csr's initials in as the person doing the quote.

I met with the Travelers Rep today and I believe this is the method that we will use with them. Otherwise we will have poduction requirements for every producer with a sub-code.

The independent agency I'm with now, just added me to their agency policy and I don't pay anything.

that brings me to the compensation package model. Tell me what you think. If I am handling the cost for E&O, new office, new furniture, new computers, agency management system, access to 18 auto carriers, 5 home carriers, direct commercial carriers and all of the leads are provided by Agency Contact Representatives (reminiscent of the position from Troy Korsgaden's book "Power Position Your Agency") I am thinking of something like this:

70/30 split on new business 50/50 split on renewals. Anything sold by our life guy gets a 20% referral fee. No chance to buy your book of business on departure and 2 year non-compete clause.