Production incentives

[Island Girl Agent]

OK, Lady Broker, I like your idea to start a thread about how to incentivize both the sales staff and the support staff. One thing I do is email weekly new business reports to all producers so they can see their own production as well as others. This has helped develop some healthy competition among the producers as well as a quick way to stay on top of cross selling opportunities between my P & C and Life & Benefits department.

I'd like to see what others are utilizing, especially on incentives for support staff. Bring it on!

[Norcalinsurance]

I like this thread. I want to put in sub-producers. I'm thinking all commission up-front with a bonus each year of a few thousand $. What do you think?

[chasman]

Our agency uses a production incentive to attract future partners. Since we all know that no broker worth his salt will work without ownership incentive, we offer our producers a 25% ownership stake in the business they produce after a three-year "run in period" during which they earn out a salary (draw) and go on commission only. We pay them a stipulated percentage of the commission (approx. 37.5%) on commercial and personal lines business and 50% on life & health.

So far, we have only had to buy out a dis-enchanted or failing broker who decided to leave, twice. The reward has been to provide us with a cadre of highly motivated and successful brokers who will one day, I am sure provide for my retirement.
Our business is over 100 years old.