What Are They Doing Differnetly

[nyc2phi]

Thanks guys.

I know an agent that made it big in the NYC habitation market. He has niche programs and connections that allowed to build such a big agency.

I don't have that opportunity but I like the idea of multiple locations and acquisitions.

 

[dean8287]

From everything I see it's the ability to hire and train new staff including producers. Niche, agency purchase, etc are important, but the ability to develop a team including producers is the game changer. By the time most people wake up each morning I have been working for several hours, but I can only do so much myself. If I produce $1,000,000 in new business myself each year it only puts me at 10,000,000 in ten years and that is not even realistic with cancelations, business closings etc. I think to be a huge agency it all comes down to the agency principal being able to spend most of his/her time developing the business in aspects outside of producing. I started scratch not very long ago and am far from mastering this, but it appears to be what makes the difference.

 

[insurance1822]

If I hire a producer I wouldn't know how to make sure they're actually making good money. Referral relationships take a long time to create & nurture...so what do I give them in the meantime? Internet leads? Pay them a salary & hope they network well & hope it starts paying off? There's not much in 1st year commissions as we all know so I guess we roll the dice & pay them a salary & do our best to train them to network? I just feel like producers are under paid bums & I don't wanna be one of those people that had an under paid bum working for them.

Then again I guess plenty of people would be happy to work for 30-35k?

It's all a pita & id love to see what some of these newer agencies with teams of producers are actually netting when it's all said & done. There's literally nobody in my group of 70 agencies who writes more personal lines then I do single handedly...yet many have 2, 3 and even 4 producers & I know their book sizes so I know I'm making way more then them at the end of the day.

The big moose agencies at best are simply "not shrinking" with their teams of staff so I dunno. I think there's much to be said of writing a boat load & doing it solo. Of all the agencies In my group, none of their teams of people can out produce me alone so what gives?

Only difference is I bet those guys aren't working 75 hour weeks like I am.

 

[nyc2phi]

If I hire a producer I wouldn't know how to make sure they're actually making good money. Referral relationships take a long time to create & nurture...so what do I give them in the meantime? Internet leads? Pay them a salary & hope they network well & hope it starts paying off? There's not much in 1st year commissions as we all know so I guess we roll the dice & pay them a salary & do our best to train them to network? I just feel like producers are under paid bums & I don't wanna be one of those people that had an under paid bum working for them. Then again I guess plenty of people would be happy to work for 30-35k? It's all a pita & id love to see what some of these newer agencies with teams of producers are actually netting when it's all said & done. There's literally nobody in my group of 70 agencies who writes more personal lines then I do single handedly...yet many have 2, 3 and even 4 producers & I know their book sizes so I know I'm making way more then them at the end of the day. The big moose agencies at best are simply "not shrinking" with their teams of staff so I dunno. I think there's much to be said of writing a boat load & doing it solo. Of all the agencies In my group, none of their teams of people can out produce me alone so what gives? Only difference is I bet those guys aren't working 75 hour weeks like I am.

In your position since you're so PL's driven, I would hire a commercial producer with experience.

You have the carriers just not the time to focus on it.

CL is relationship driven also but he can start by cold calling and pick up some accounts early on.

 

[insurance1822]

Ya but how do I monitor/supervise a commercial producer when I don't know enough about it myself? What would you pay a commercial producer?

I would imagine most commercial producers are making at least 100k yearly and I sure as hell don't want to pay that. So how do you get them to switch?

 

[nyc2phi]

Ya but how do I monitor/supervise a commercial producer when I don't know enough about it myself? What would you pay a commercial producer? I would imagine most commercial producers are making at least 100k yearly and I sure as hell don't want to pay that. So how do you get them to switch?

Good point, in that case I would look to hire someone with commercial insurance experience. You'd be surprised to find how many are out there that are pissed at their current broker and looking for a new agency. Some are looking for new carriers cause their existing agency doesn't have a lot of options.

70/30 is fair for new business with no salary. Let him negotiate up to that.

 

[insurance1822]

Have you been able to bring on commercial producers? I hear Erie just absolutely murders the commercial world so I would think experienced producers would want access to them?

 

[InsuranceJerk]

The problem with acquisitions is that money has been abundant and cheap. It's driven up the multiples on books way too high.

 

[Arnage150]

Just out of curiously what do you guys consider a large agency (in annual commissions)?

 

[insurance1822]

I consider a $5,000,000 book 'large' but I'm sure many people on here will argue that's small (even though they themselves aren't even sniffing what a $5,000,000 agency owner makes.)