Big Event 2011: Producers

Producers – How to find them, pay them, and

what they should be doing

Everett Shaw, ASATom McGraw, CPCUJason Hoeppner, CIC

B. H. Burke & Co., Inc.

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This is not aSales Management Seminar

Don’t have a enough time

Don’t have enough experience

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$30,000

$3,750

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Our Mission This Morning

STIMULATE

“Their discussion stimulated me to research the subject more.”

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Our Mission This MorningStimulate you to go back next week and

Satisfy yourself that you have a culture conducive to organic growth

Satisfy yourself that you have a sound Producer Compensation Approach that you can explain to a new producer you meet along the way.

Satisfy yourself that you are proactive and thorough in your recruiting. It is a numbers game.

Satisfy yourself that you have the right people involved in the administrative role, the mentoring role and the management role.

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The Agenda

Why we bother – $$$$$

Finding ‘Em – by far the hardest

What they* should be doing – ‘today’.*Really… “We”

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Financial & Psychological Impact of a Properly Structured Producer Compensation Plan

(How to Pay Them)

Trends in Producer Comp Models

Pay What You Mean Impact on Producer Impact on Profitability

Typical Producer Comp Plans

Sample Income Statements Showing Impact of Various Plans

Other Producer Perks

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Trends in Producer Comp Models Do Some Homework

Size Matters – Trend Driving This Trend.New Biz splits on everythingMinimum thresholds for renewals

Geography matters Include all lines“Qualifying Accounts”

Adjusting New Biz splits Increased with more production

Other perks Typically tied to “Qualifying Accounts”

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Consistent Message?

Isn’t the goal GROWTH?

Psychological Impact On Producer

Profit Impact on AgencyLet’s Do Some MathA Little Theory

Book should generate 3X pay. Why?

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Typical Producer Comp Plans For New Producers

Do What Ya Gotta Do – Within Reason Usually base/draw + New Biz Draw/Base usually lasts for set period of time and goes down each

year.Sample Arrangements (Commercial/Personal)

50% New / 25% Renewal - Renewal on everything 40% New / 30% Renewal - Renewal on accts w/comm’s over threshold Base salary equal to 30% of prior year book

Some restrict to commercial lines only Reviewed quarterly Bonus if goals are surpassed

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Other Producer Perks Auto, Phone & T&E Allowances

Phantom Stock

Book Equity / Deferred Compensation

What is it? Why Offer It?

Your competitors are Good tool for future owners Sophisticated producers will want it

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How do you want your producers to be regarded? How do you want your producers to be regarded? As sophisticated?As sophisticated?

Finding ‘Em - Recruiting

Before I recruit…do IKnow how I will pay them √Know who will handle the administrative piece √

Know who will mentor them √Know who will manage them √Know, and be honest about your, culture √

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Finding ‘Em – The Activities

Culture CompensationBegin with end in mind.The actual searchThe assessment process

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Finding ‘Em – The Activities

Culture Producers are seen as investment not a cost

or burden.The mentor and manager are committed to

providing encouragement and support.All layers of the organization welcome and

support the investment.The agency treats failures as opportunities.Management has realistic expectations.

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Finding ‘Em – The Activities

CompensationSee Everett’s presentation

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Finding ‘Em – The Activities

“Begin with end in mind.”Often overlooked…

What will define success?And don’t compromise on the

characteristics you are looking for.So you need to know them.

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Finding ‘Em – The ActivitiesCharacteristics

Drive to achieveRelationship skillsCognitive abilitiesWork ethicVerbal SkillsDesire Compensation Fit

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Copyright © 2011 by CIB Group Services, LLC. All rights reserved. www.cibgroupservices.comCIB’s mission is to help agents recruit and develop new producers.

Finding ‘Em – The Activities

The actual searchInsideOutsideThe 100 letters.

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Finding ‘Em – The Activities

The assessment processDon’t fall in loveIt is ‘bi-directional’ - The interviews - the more the better.The profiling – too much reliance.The testing – profiling is not testing.The reference checks – hearing what you want

to hearThe speed of the process

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What They Should Be Doing

From what I understand, the best producers do the following better than anything else:Fill the funnelMake face-to-face contactHonestly qualify the suspect

In today’s world, these superior sales people are also using all the tools available for them to make the above as effective as possible.

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Social Media and the Online WorldWhat should producers know/understand/realize?

Finding suspects for the funnel can be augmented by online searches and research.

The common ground they find to help establish that connection with a prospect may be easily discovered, if said prospect is also online.

Qualifying suspects should also include online reviews.

The research of companies should also have an online, including social media, component.

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10 Commandments of Successful Producers

(as they relate to the online world)Thou shall not go on an initial visit without:

A Google, Facebook, LinkedIn, and Twitter searchA thorough review of the prospect’s web site.

Thou shall not conduct a cold call.Make it a warm call if possible by using the above tools.

Thou shall know what your prospect has online.Read their blog(s).Check out what affiliations they have.

Thou shall connect as much as possible with prospects online.

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Contact Us

www.bhbco.com860-399-8288

Everett@bhbco.comTom@bhbco.comJason@bhbco.com

www.twitter.com/JasonHoeppnerwww.facebook.com/JasonHoeppnerwww.LinkedIn.com/in/JasonHoeppner

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