https://completemarkets.com/Article/article-post/951/PROFIT-CENTER-APPROACH-TO-SALES/
...y circumstances. Travel/entertainment/promotion-Most of these expenses ...w business without doing your profit-center homework. The last thing you need ...
https://completemarkets.com/Article/article-post/1008/ACQUIRING-AN-INSURANCE-AGENCY/
...s and perks, such as autos and entertainment reimbursement? If current commiss... few years, set up a separate profit center with a bonus arrangement that pays...
https://completemarkets.com/company/CompleteMarkets/Articles/content-package/IMMS-Library/TabCategory/article-post/1008/ACQUIRING-AN-INSURANCE-AGENCY/
... , but if you do, it may take a lot of extra work to get the client files cleaned up and the staff retrained. This housecleaning will take time away from the production of new business. What about compensation levels and perks, such as autos and entertainment reimbursement? If current commission percentages are too high and you try to reduce them to a more affordable level, will there be a mass exodus? Do the producers you want to keep have assignable employment contracts with some sort of nonpiracy protection? Are the contracts ... pay the person as a servicing producer on the renewal of those accounts, but a hefty new-business commission percentage might be in order. When a branch is being acquired and the seller is being retained as a manager for a few years, set up a separate profit center with a bonus arrangement that pays a large percentage of the profits exceeding the earnings plan. This will provide a reward for higher commissions, lower expenses, and/or both. Agree to a slightly higher guaranteed price, but with installments to be reduced if ... commissions don't remain at predetermined minimum levels. Hire the former owner to perform management functions (company relations, computer installation, sales or customer-service training, acquisitions) . Pay this individual a combination of salary and results-oriented bonus based on a formula in keeping with the assigned tasks, such as increasing contingent income, revenue per employee, or commission per producer or CSR. This article was reprinted from The Middleton Letter with permission from Carol A. Hammes, CPCU. Carol Hammes can be reached at The Middleton Letter, P.O. Box ...