Agency Consulting Group, Inc.’s Producer Compensation Program and Producer Validation Program and our relationship selling system, the Asset Protection Model work together to mechanically monitor new producers’ sales call activity as well as sales results in order to assure that they are meeting the agency’s expectations of the producers and their need to pay for themselves. Each program works independently, as well. Still, these systems are exactly that – “systems” to aid in the mechanical measurement of the activities as well as results of an employee’s success and to aid you in the management of those employees. They do NOT replace you as the employee’s manager. You as the agency owner or sales manager must use these systems for their intended purpose, to help you determine whether the employee is:
- Performing enough of the activities that will make him/her successful
- Yielding the results from that activity that will achieve the target goals (revenue or commission) that will pay for the producer and prove their success.
We all recognize that when we hire producers, new or experienced, we are making a substantial investment – in money as well as time (ours and that of our support staff). Historically, we have “blessed” the new producer and told him/her to “Go Ye Out and Sell Some Insurance.” In many cases, that was the entire training, management and familiarization program. We expected (hoped and prayed) that the producer was self-motivated enough to sell to his friends, acquaintances and former clients. We might check up on the producer every so often (“How are you doing, Charlie?”), hoping that the answer will always be neutral (“Fine”) because we were too busy to coach and counsel the producer and we didn’t know what to tell him that would make him more successful anyway.
Then, as we keep paying the producer’s salary or draw every month and see no real results first we make excuses for the producer (“He’s only been her a few (weeks, months, etc.)”), then we begin to resent the producer, sharing your disappointment with your wife, your staff and pretty much everyone (except, in many cases, directly with the producer). Historically, unless the producer was truly exceptional, we hung him out to dry and, when we became sufficiently resentful, we figured out a way to get rid of the producer since he was only costing us money and not fulfilling our hoped for sales boost.
Sound familiar?
We designed our systems in support of the agency owner or sales manager spending the time needed to teach, coach, and counsel the producer into the frequency along with relationship building skills that would convert sufficient prospects into viable and valuable clients that would pay for the producer and add profits to the agency. Which means NO management system or spreadsheet will replace old fashioned personal management. When the systems are employed and actual management doesn’t materialize the end result is usually disappointment when the reports simply prove the obvious, that the producers aren’t performing. Yes, it provides substantiation of disappointing performance, but we don’t hire producers to be disappointed and to get rid of them. We hire producers to leverage our- agencies to grow profitably. The task of sales management and the efficiency of mechanical monitoring and management systems will allow you to manage, and progress your producers through any rough spots they encounter with your help.
Step 1: Selection
A challenge, in itself, is selecting producers slowly and carefully. It is far less expensive than taking all comers and getting rid of the vast majority when they don’t perform. We sometimes forget that when a failing performer appears before your prospects they are representing YOU! If for no other reason, that reflection colors your prospects’ opinions of your agency and of you, personally. So we must interview carefully to ascertain whether the person has the personality and characteristics that you are seeking and that he is both enthusiastic and smart enough to build a trust relationship with prospects IN YOUR NAME.
Step 2: Individual, intimate coaching and counselling
When you hire a producer that, you hope, will generate tens of thousands of dollars of new commissions for your agency annually, you must devote your own quality time (or that of another coach/counsellor) to making sure that the producer is doing the right things frequently enough to maximize their chance of success. This isn’t a challenge to “Do or Die.” It doesn’t benefit you at all if the producer fails. But it benefits both the producer and your agency to make the producer successful as quickly as possible. Take the producer out with you to watch how you do it and to critique you and ask you questions after the sales calls. Defeats are as valuable as successes because it teaches the young producer that no one ever died from rejection at a sales call. Then, after several calls in which you are the lead producer, let the young producer take the lead and you stay silent, taking notes for analysis after the call to give feedback and to progress the producer toward independence. If the producer has experience in insurance and sales (s)he will quickly offer to go on their own because they really don’t want or need you to ride ‘shotgun’. If the producer is inexperienced, you may have a “shadow” for quite some time until you are comfortable that the producer is able to act as your representative to prospects on their own.
During this breaking in period you will also show the producer how the validation schedule works and how the validation reacts with the Producer Compensation Program to assure their compensation by meeting their expectations.
Step 3: The Systems
Validation for a new producer is based on Sales Call Activity, not on sales or revenue. Whether experienced or new, it will take some time for the producer to activate sufficient prospects enough times to create opportunities to convert prospects to sales. However, if the size of prospective clients is sufficient to justify the producers’ visits and if the producer is accomplishing the task of evolving a personal and trust relationship with the prospect at each call, the end result will be sufficient new business to justify the producer’s compensation in the first year, double his compensation in the second- – year and triple the base compensation in the third year, at which time he is converted from salary plus bonus for excess production to commission based on prior year total revenue generation.
This three-step process will give you the best chance to work either experienced or new producers into functional and productive assets for your agency. We would be happy to guide you through the morass of producer motivation, compensation, management and validation. Just call us and we’ll help you get started to leverage yourself so that you are no longer the only performer for your agency. We can be reached at 856-779-2430 or al@agencyconsulting.com