Help/Advice Hiring a Producer

[redsox24]

This is a job offer that I put together:

As a small, well established independent insurance agency, we are in need of an experienced commercial/personal lines sales producer. The candidate must have an active property/casualty license. Holding a life license is an added bonus. Prior insurance sales experience in both commercial and personal lines is necessary. A professional presence with excellent people skills is required. The Producer will be responsible for prospecting, soliciting, quoting, and selling new Commercial/Personal Lines accounts. Continuing to counsel and market to existing clients professionally is another essential function of the position. The producer must meet service and sales standards of volume with timeliness and quality. The producer must be highly motivated, energetic, enthusiastic, well organized, technology oriented and computer literate. This position requires a candidate with good oral and written communication skills.

Compensation: Base + Commission

I want to offer $300 per week as base. I have never hired anyone on commission so I am not sure what to offer. Can anyone help? Also, we are a small agency with 3 Standard Auto and Home companies and 3 Commercial Lines companies. Is that enough to get a producer working on mostly commission to help increase our sales? Thanks for any criticism and/or advice!

 

[nyc2phi]

With a base salary you can offer anything between 30/70 - 50/50 on new business.

I've always liked the idea of offering a 30/70 split with base, decreasing the base and increasing the commission each year as they build a book with you.

 

[redsox24]

Thanks NYC. So the first year, I would offer them 30% of the commission with $300 a week gross. The following year, 40% and $200 a week gross, the third year, 50% and $100 a week? Does this sound right? Do you offer benefits?

 

[VolAgent]

You said experienced.

What about this is remotely attractive to a profitable and experienced producer? Or do you consider experience someone who has just had a license for some time?

Think about it, Joe Blow is a good producer at XYZ agency, but he is unhappy and looking for greener pastures. He has been bringing in 80k, 100k, maybe even 150k at his current agency. Almost certainly he is going to have to leave most if not all his book behind if he leaves.

He's going to leave and come to you for $300 a week while he builds a new pipeline and gets new clients. Then he gets 30%?

Either pony up and screen/interview hard for real producers or be willing to take anyone with a license or willing to get a license.

 

[redsox24]

VolAgent, I absolutely get what you are saying. That's why I asked for advice. I need to know what to offer a real producer. Please help.

 

[VolAgent]

VolAgent, I absolutely get what you are saying. That's why I asked for advice. I need to know what to offer a real producer. Please help.

You're looking for an employee. A go-getter, but still an employee.

If you want someone experienced, you're going to have to pony up. Which means keeping them at, close to, or even exceeding previous income during the transition. You can probably get by with close to since it is commission and they are probably leaving for reasons other than money.

Now, if you are willing to offer ownership in their book, that does change how much you have to pay up front. Of course, you also see some of the book leave when they leave or have to buy them out.

What the numbers are, I can't tell you. It depends on what people make in your area, what a good producer makes in your area. But start by putting yourself in their shoes. What would get you to leave a good position, or why would you be looking to leave?

I will add this. The people leaving are probably not leaving over money. They are almost certainly unhappy about something. The question is, will they bring that unhappiness with them?

 

[redsox24]

VolAgent...someone who is retired approached me for a job. This actually happened at a convenient time. I wrote the job description above because I don't want to hire this particular person if he isn't going to go out and sell. I was going to give him first refusal and then advertise for maybe a newly licensed agent, if the retired agent isn't interested. I really didn't want to put the facts our here on the internet but here they are. I know the reasons this person is retired and age is not one of them. I don't want to get into more details.