One of the most common questions we hear during consultation involves compensation for owner/producers, existing producers, and new producers. The principal question is how much and how to pay for production that compensates salespeople fairly and gives them incentives for continued growth.

The answer is complex because the same compensation models don't fit all producers.

HOW IS YOUR COMPENSATION PLAN LINKED TO PERFORMANCE? by Sharon Cunningham Now well into the new year, agencies throughout the country are taking a close look at their year...

PRODUCER COMPENSATION: A COMMON-SENSE APPROACH by Paige Proctor The basis for a good producer compensation system for today's independent agencies and brokerages rests on two very...

PRODUCER COMPENSATION: REALITY CHECK by Chris Burand Before setting your producer compensation plan, read this article. Past articles in industry publications abou...

Most insurance agencies would like to be driven by a regular flow of new business from their producer force. However, most agencies find that their producers (owners or not) spend most of their time caring for existing customers, with production relegated to a secondary position. They only have time to prospect and sell when they can break away from service tasks.

However, the producers feel that they should be making more money, whether for non-sales tasks they perform for the agency, for servicing existing customers, or from sales to new customers. Unfortunately, if an agency isn’t growing through the efforts of its producers, it has little additional income available to further compensate these key employees.