Help Need Do's & Dont's for Commission Based Agent

[Crys]

I am looking to add a team of producers paid by commission only. They cannot keep the book of business no pay on renewals. They will get 1/2 of the new business commission and they will receive a 1099 for taxes. Also a letter of non-compete will be required.

Did I forget anything??
Is my commission rate fair?

I will provide all the service and they will not even do the quoting. They just bring me the leads and I do all the work. Any suggestions I just want to build my new agency with out killing myself.

 

[rousemark]

And these people are producers in what sense of the word? You are not wanting to hire producers, you want "bird-dogs".

 

[maksim]

So you are not hiring a new agent, you are hiring a lead developer.

I think this will be tougher to find someone to work commission only to mostly be doing smiling and dialing. (depending on what products you are selling).

Read the white papers by Bill Good on team building. For this person, ideally you are paying hourly plus bonuses.

The question is... would you take your own deal? Why would someone work for you for no renewals, not their own clients? Why do they need you?

Work on those things.

Another consideration... the non compete... I would do just non solicit, you are screwing the person enough as it is... a non compete is just horrid. Non solicit of those existing clients is fine. Exception being any clients they bring on from their own natural market. Those would be their own clients.

On the whole... if you are providing everything... office, all expenses, leads list, then the deal is not terrible. You just need to make exception for those relationships brought on from the person's natural market. If you are expecting the person to pay their own expenses on top.... then why are they working with you?

Lastly, if this person is primarily brought in to prospect... then they are not really an agent, and mostly a sales person/caller/lead generator/lead developer. Don't call them an agent.

 

[Crabcake Johnny]

Sounds like you're better off just hiring a team of telemarketers.

 

[Kenek]

Ditto what Crabcake said. You might be better off financially by just buying leads as opposed to sharing comissions. Plus telemarketers only cost about $8 an hour.

 

[rousemark]

Considering that based upon his post his only interest is "me, me, me", a person would be a complete *** to sign on with him in any capacity. JMHO.

 

[Crys]

Thanks for your honest comments...I will take it all into consideration.

 

[Silvio Dante]

And these people are producers in what sense of the word? You are not wanting to hire producers, you want "bird-dogs".

This is the way I see it. All in all it sounds like this idea needs some serious tweaking

 

[Josh]

How many people do you think will say yes to this?

 

[Crys]

This is the way I see it. All in all it sounds like this idea needs some serious tweaking

This is a new scratch agency. That does not have a large book of business; however, it has quotas for the carriers it has to deliver on. Right now there is not enough revenue yet to pay an agent a salary or offer additional perks to a producer.