Compensation Ideas: Unique Situation; Inside Producer, Supplied Leads w/Benefits
Posted: Thu May 09, 2019 8:34 am
All,
I'm hoping to get some 3rd party input on a topic that has been beaten to death a thousand times in different ways, but I'm needing to get a 'feel' for a reasonable comp plan for a new hire. I am in the Austin, Texas area and starting a new niche P&C agency (primarily commercial) that is well-funded from a parent company in a complimentary vertical. This position is an inside sales agent whose primary responsibility is going to be to dial the phone and solicit new business on accounts and leads that we (the agency/company) provide. There is no travel and no outside sales expenses like mileage, entertainment etc. I plan on building out a large team in the coming 6 months, but this is my first hire for this agency. I had producers in my own agency, but that was a few years ago and under difference circumstances. Here are the details.
- 99% of leads are provided to the agent. These are either existing clients of the parent company or active prospects of the parent company. All the agent has to do is contact them and try and solicit business
- The agent will also have a full suite of employee benefits, many of which are paid or contributed to from the company (health, FSA, 401K, unlimited PTO (within reason), dental, vision)
- The agent is not responsible for creating quotes or servicing the accounts, myself or a CSR will do all of that as the team grows. The agent's job is to dial the phone, develop opportunities and then sell the quotes we provide without all of the servicing distractions.
- Ideally this agent should also be fluent in Spanish
- In reality, I'm probably expecting to end up hiring someone in his or her early to late 20's with 2-4 years experience (with commercial knowledge) with no professional designation that isn't an experienced outside producer with a book of business and that's trainable. I expect to spend time developing product knowledge, working on sales skills, etc. This will be an inside sales producer working in the niche construction/contractor industry.
COMPENSATION:
I'm thinking about a $35-$40K salary (plus benefits and all of the above) but I'm stuck on the commission breakdown. I want to provide financial motivation for selling and retaining business, but I'm also providing the leads, the service work, and benefits. What do you guys think (in reality)?
- 35% new business and 15-25% renewal
- 35% new business and no renewal
- 30% new business and 15% renewal
- Something altogether different?
I want to be able to retain and grow these agents (professionally and financially) as the company grows and give them incentive to stay (not a lot of younger people coming into the insurance industry) and it's going to be a demanding sales quota, but I don;t want to give away the farm for someone with little experience and no book of business who isn't servicing the accounts or generating his/her own leads either.
Thoughts???
I'm hoping to get some 3rd party input on a topic that has been beaten to death a thousand times in different ways, but I'm needing to get a 'feel' for a reasonable comp plan for a new hire. I am in the Austin, Texas area and starting a new niche P&C agency (primarily commercial) that is well-funded from a parent company in a complimentary vertical. This position is an inside sales agent whose primary responsibility is going to be to dial the phone and solicit new business on accounts and leads that we (the agency/company) provide. There is no travel and no outside sales expenses like mileage, entertainment etc. I plan on building out a large team in the coming 6 months, but this is my first hire for this agency. I had producers in my own agency, but that was a few years ago and under difference circumstances. Here are the details.
- 99% of leads are provided to the agent. These are either existing clients of the parent company or active prospects of the parent company. All the agent has to do is contact them and try and solicit business
- The agent will also have a full suite of employee benefits, many of which are paid or contributed to from the company (health, FSA, 401K, unlimited PTO (within reason), dental, vision)
- The agent is not responsible for creating quotes or servicing the accounts, myself or a CSR will do all of that as the team grows. The agent's job is to dial the phone, develop opportunities and then sell the quotes we provide without all of the servicing distractions.
- Ideally this agent should also be fluent in Spanish
- In reality, I'm probably expecting to end up hiring someone in his or her early to late 20's with 2-4 years experience (with commercial knowledge) with no professional designation that isn't an experienced outside producer with a book of business and that's trainable. I expect to spend time developing product knowledge, working on sales skills, etc. This will be an inside sales producer working in the niche construction/contractor industry.
COMPENSATION:
I'm thinking about a $35-$40K salary (plus benefits and all of the above) but I'm stuck on the commission breakdown. I want to provide financial motivation for selling and retaining business, but I'm also providing the leads, the service work, and benefits. What do you guys think (in reality)?
- 35% new business and 15-25% renewal
- 35% new business and no renewal
- 30% new business and 15% renewal
- Something altogether different?
I want to be able to retain and grow these agents (professionally and financially) as the company grows and give them incentive to stay (not a lot of younger people coming into the insurance industry) and it's going to be a demanding sales quota, but I don;t want to give away the farm for someone with little experience and no book of business who isn't servicing the accounts or generating his/her own leads either.
Thoughts???