Thoughts on a Comp Plan...

[Aram Fingal]

THANK YOU!! That is exactly what I was looking for. You guys are just awesome! What kind of base and bonus structure would you run?

Well, that's really going to depend on what wages are like in your area. Also on how much you get paid on your business. But for example:

In WA the minimum wage is $8.XX (I don't remember the exact amount). You want to pay more than minimum wage, but only by as much as you need to. What you could do is start out at say $10 per hour on a 30 or 40 hour per week salary (plus the production bonus).

The bonus could either be a flat amount per X number of policies written, or based on premium, or you could say something like "if you do X number of policies you get an extra $1.00 per hour next month". There are all kinds of ways you can do bonuses. You need to find what works for you. But it's better to do an incremental bonus structure that the first tier or two are easy to reach so that they feel like they're accomplishing something. If they don't hit bonuses fairly regularly they won't work as hard to get them.

 

[GMANPRO]

Well, that's really going to depend on what wages are like in your area. Also on how much you get paid on your business. But for example:

In WA the minimum wage is $8.XX (I don't remember the exact amount). You want to pay more than minimum wage, but only by as much as you need to. What you could do is start out at say $10 per hour on a 30 or 40 hour per week salary (plus the production bonus).

The bonus could either be a flat amount per X number of policies written, or based on premium, or you could say something like "if you do X number of policies you get an extra $1.00 per hour next month". There are all kinds of ways you can do bonuses. You need to find what works for you. But it's better to do an incremental bonus structure that the first tier or two are easy to reach so that they feel like they're accomplishing something. If they don't hit bonuses fairly regularly they won't work as hard to get them.

That seems to make sense. I am in arizona btw. the average producer at my company does 35-40 policies a month. minimum wage is $7.5ish. What about this?:

$10/hour base

Bonus:

Premium | Bonus (% of premium)

$8000 1%
$10000 2%
$12000 3%
$14000 4%
$16000 5%
$18000 6%
$20000 7%

 

[NCAgent]

That seems to make sense. I am in arizona btw. the average producer at my company does 35-40 policies a month. minimum wage is $7.5ish. What about this?:

$10/hour base

Bonus:

Premium | Bonus (% of premium)

$8000 1%
$10000 2%
$12000 3%
$14000 4%
$16000 5%
$18000 6%
$20000 7%

That seems pretty low, doing 16k and getting 5% on top of 10/hr. At least IMO from my agency, it could vary I guess...

 

[GMANPRO]

That seems pretty low, doing 16k and getting 5% on top of 10/hr. At least IMO from my agency, it could vary I guess...

That seems low?.. that would equate to around 32 policies and they would get $2500/mth. They will be getting over 100 internet leads each a month.

Not trying to argue just want to be sure we are on the same page.

 

[VolAgent]

That seems low?.. that would equate to around 32 policies and they would get $2500/mth. They will be getting over 100 internet leads each a month.

Not trying to argue just want to be sure we are on the same page.

That seems like a lot of work for about $600 a week. I have to sell about 1 in 3 people I talk to, and put about 1.5 policies on the books every day.

Never done P&C, but seems like way too much work and stress for way too little money.

 

[GMANPRO]

That seems like a lot of work for about $600 a week. I have to sell about 1 in 3 people I talk to, and put about 1.5 policies on the books every day.

Never done P&C, but seems like way too much work and stress for way too little money.

You have to remember though, with P&C most clients are 2-3 policies, and it's not uncommon to do 7 or 8 policies "items" a day. Just a few days ago I wrote 12 policies between 3 customers.

 

[oicu812nbama]

why not pay them 10% and make them think twice about going somewhere else? i would give real estate agents, etc. fyc and then charge them back on future referrals if it didn't stick. lol. aint the game about renewals anyway?