Looking to hire a producer...need help

[mls]

We are looking into hiring a producer so we can grow a bit more quickly and need some advice. Our P & C agency is a small and targets commercial business. We are not able to pay a salary but may consider a small weekly draw. What splits would you recommend? Please feel free to ask questions that may help with your advice. Thank you for your time.

[Shagster12]

Here're some questions:
1) What type commercial accounts are you interested in soliciting, what lines? BOPs? GL, comp, auto......? What classes of operations....?
2) What experience level of producer? If looking for experienced but only writing BOPs you'll have a hard time finding a fit.
If looking at larger commercial monoline and package accounts a more experienced producer will be needed but a small weekly draw will not likely attract one unless you're willing and able to offer high splits 50new / 40-50 renewal.
3) How is your support staff - back room set up? A true producer will need service support and will be demanding on that.
4) Are you providing leads or will the producer? Will you buy a producer with a book to bring along?
5) What do your current commercial markets look like? This will help identify where you'll find success in prospecting?

Well that's a few items to consider, some food for thought to get the ball rolling....
Good luck!
Shagster

"The true measure of a man is how he treats someone who can do him absolutely no good."
- Samuel Johnson (1709-1784)

[mls]

Hey Shagster,

Thank you for your response. The answers to your questions are as follows:

1. Small to medium BOP/PCKG, Work Comp, Auto, EPLI, etc.
2. I was thinking newly licensed to one year prior experience
3. No support staff, just me
4. I will provide some leads but would like him/her to produce some of their own also. No to buying a book.
5. No real direct appointments; primarily through MGA's and Program Underwriters

Hope that helps. Thank you.

MLS

[Shagster12]

Ok MLs so here's my thinking;

Based on your lack of direct markets and support staff, your best fit will be to find someone young and hungry that's newly licensed or find someone you can help get licensed. A student might even fit the bill for now.
With a small weekly draw but strong comm splits you should be able to get some incentive. But understand this, experienced producers are failing on a regular basis in this marketplace so you're going to have to be very patient with someone new. Be supportive and active with your mentoring and you can both succeed. Deal with the frustrations positively because it IS frustrating right now....Make everything a learning experience and you will both grow together.

As for the splits I recommend a 50% new and 40-50% renewal split, be generous. Especially for a newly licensed producer. Realize you're going to commit to helping them survive the first year or two until the book builds and they're supporting themselves. So I also recommend you consider a small salary rather than a draw which could and likely will put them in a position of debt to your agency which is a no-win situation...
So my recommendation is a small salary which guarantees income with a healthy split on top... Pay them well and they can't help but want to make more...this makes it a win-win! The more they make the more you make!
Good Luck!

[pita3333]

Another missing question is location. Where are you located?

Based upon the replies to the other questions...you are looking at an uphill battle. You will likely be focusing on a greenie who will need lots of training and backup. Are you up to that task? More importantly, can you accomplish this task?

why not bring in some support and then release yourself to do more sales? This way you know the quality of the submissions. Me thinks this is a better possible plan. Of course you did mention not much cash to offer in way of salary (also assuming benefits would be lacking for lack of cash).

But...then again...who knows, with all the layoffs that have been happening, you might find a hungry person who would love this opportunity versus unemployment!

[mls]

Hey Pita...we are located in San Diego, CA. Thank you both for your honesty and valuable input...I really appreciate it. I will probably be looking for a newbie. It would be a learning experience for them and me! I don't have any problem with the commission splits as it would be a good incentive for them. If I had received those splits where I used to work I may still be there! JK, glad I am on my own. Thanks again.