by Guest » Sat May 09, 2009 09:10 pm
Hello, I'm an Independent Agent and I started my own Agency in early 2009. After I get some more experience under my belt I would like to hire agents. I would like to know how difficult is it hiring and managing agents and what is the best way to compensate them? For example(Would you give them a salary initially then commission or just give them 60% commission for the duration of their employment?)
Posted: Sun May 10, 2009 01:00 am Post Subject:
A lot depends on what type of insurance agency you have. For example, it would be very hard for a brand new property and casualty agent to work commission only! How is your agency doing? There are so many things we can share with you...but we need a little more information!
Posted: Sun May 10, 2009 05:21 am Post Subject: Re: Independent Agent Hiring Agents
Hi Chris, thanks for your reply. The agency is Home, Auto, Life and Commercial. All the business that I have is from referrals from exclusive agents. I would like the Agent(s) I hire to choose what area they want to specialize in initially, then they could sell other products. Let me know what other details you need.
-Regards,
Posted: Mon May 11, 2009 02:34 am Post Subject:
The salary will depend on the going rate / average in your area, but a great resource is salary dot com. A word of caution when hiring someone that you plan on paying salary plus incentive: If they seem really excited about the salary...MOVE ON! I find the best insurance agents are the ones that are excited about the possibilities and excited about the revenue they can drive if motivated. If the salary you offer is too high, you may take away some of the incentive to work hard and strive to make a large bonus!
Posted: Mon May 11, 2009 06:24 am Post Subject:
Hi Cws, since your agency is really a new one IMO you should offer less on salary and more on commission. That is because agent salaries would add to your fixed cost and increase the overall operative cost of the agency.
Its important to know the agency's performing till date so to decide how the pay structure should look like. Also, it'd depend upon the average volume of business the agency would write in a month.
Posted: Mon May 11, 2009 07:25 am Post Subject:
I would like to add to what Jeorge says....... that.....
its your lookout.. if you want to drive your agents to give consistent n growing business keeping your fixed cost low...... Offer a low or considerable salary with attractive commission packages with slabs that would motivate your agents to get more business without you driving them to do so... with occasionally some contests running..
This gives the agents a good earning potential and for you good business..
For long term business ensure that your agents do not do misselling and follow honest n good business practice.. so that even if they take a shift.. the business should remain with you..
Posted: Mon May 11, 2009 11:47 am Post Subject:
CS asks:
Would you give them a salary initially then commission or just give them 60% commission for the duration of their employment?
I believe it has to be a fixed+variable package. If they're not gonna get any fixed pay then they'd be forced to continuously look for other options. On the other hand if you'd pay them on a fixed scale, it would be difficult for you to identify the better performers. That's the reason I'd prefer it to be a combination of both.
Steven
Posted: Sun May 17, 2009 10:05 pm Post Subject:
You talk about "getting some experience under my belt". Does this mean you are new to the business? If so, are you sure you're on good enough contracts that you can actually hire an agent and give them a decent contract? You have to make sure you're set up before you can help set someone else up.
One other thing...you didn't mention the particular lines you are in. Is it L&H or P&C? Both? What else do you market?
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