Do You Breakdown Your Producers ROI This Way?

[infoe]

Seems elementary I know, but had a long day of drinking at the golf tourney and figured be fun to post this anyways.

$15 an hour at 40 hours a week = $600 or $2400 a month
making an average of 12% on p&c commission and going with a conservative (?) 10% to minus out what it cost you to bring that piece of business to the producer (probably cost a whole lot more than that but simplicity sake)

make their goal be $24000 MINIMUM in p&c production and commision them above that?

Or do you truly figure out what it cost to bring that piece of business and make their minimums on production higher than that.

 

[Bertolinoins]

I have never been a big fan of a base + commission. I prefer to offer a draw against commission if you need a guaranteed base income. Your system should reward high performers and discourage everybody else. A guy producing less than $50-75k in new business isn't worth supporting unless he is an older guy milking a significant book of business.

 

[Guest]

if they get any base, they isnt the motivation....

Did YOU get a base when you started?

 

[infoe]

draw against their commissions it is going forward for me.

I guess i didnt specify but I was also trying to see if there should be a difference in a producer that brings in their own business vs. the producer that gets to benefit from our outbound mailing campaign and or internet leads. If I'm bringing the business to them and they just have to quote and write it...dont really think there should be any commission for that...because anyone can do that...anyone have that type of producer in their office? what's a fair compensation for that style.

 

[WaPnCpRo]

I do. My structuring is $10 an hour. I do not pay commissions, I do not pay anything else. I bring in all the lead generations. I am in a fairly poor city, so I can get away with it here. Mileage would vary depending on your area's cost of living.