I agree with fl producer it all depends on the area. Down in Florida if each producer doesn't write 40k a month they won't make it down here. The average policy we write is about 3k so compare that to the average policy you write in your area.
I am in Northern CA. Our average household is about $2100. HO policy is $900 and avg auto $1200 per year for two vehicles. We are in a flood zone so we do write quite a bit of flood at 20% commission.
The plan I am kicking around is that the new producer(s) will be paid a base of $3000 per month + benefits for the first year and 20% on new business. After 12 months when their renewals roll on they will make 60% new and 35% renewal. 50% on a simplified issue term life product we like to sell to new homeowners.
The other idea is to keep them on the $3000 base and pay bonus' per new policy written. Say $25 per policy for the quota and $100 per policy above quota then we can look at increasing the base annually for the best performers. This type of plan appeals to me.
I am in Northern CA. Our average household is about $2100. HO policy is $900 and avg auto $1200 per year for two vehicles. We are in a flood zone so we do write quite a bit of flood at 20% commission.
The plan I am kicking around is that the new producer(s) will be paid a base of $3000 per month + benefits for the first year and 20% on new business. After 12 months when their renewals roll on they will make 60% new and 35% renewal. 50% on a simplified issue term life product we like to sell to new homeowners.
The other idea is to keep them on the $3000 base and pay bonus' per new policy written. Say $25 per policy for the quota and $100 per policy above quota then we can look at increasing the base annually for the best performers. This type of plan appeals to me.
I would love to have all commission based producers however I am finding it more difficult to find quality without a base. I have been using a step plan for renewals for instance 25%1st year renewals, 35%2nd year and %45 3rd year staying at 45%for the life of the producer at our office. This gives me a higher retention as the producers are more likely to keep the book serviced knowing the renewals benefit them.
I would love to have all commission based producers however I am finding it more difficult to find quality without a base. I have been using a step plan for renewals for instance 25%1st year renewals, 35%2nd year and %45 3rd year staying at 45%for the life of the producer at our office. This gives me a higher retention as the producers are more likely to keep the book serviced knowing the renewals benefit them.
