How to Hire a NEW Agent?

[insurance404]

I need to hire a new agent and haven't done this before, yet have an amazing assistant! Need some tips.

Main business is Individual Health in WA State. Then sell Life & Disability when Open Enrollment is closed...

I will provide most of the hot leads to them. Give them 50% commission ongoing. Starting with a $1,500 salary draw per month against future commissions during OE.

Note: My business doubled in the past 8 months and will double again in the next 8 months...can't personally handle the volume of biz rolling in.

Thanks in advance for any ideas before I do something stupid, lol.

 

[Josh]

I think biggest challenge you'll have is that as soon as they think they know something they're going to want to go out on their own. If they spend any amount of time on this forum they're going to also ask about upfront releases and if they own the book of business. Because of that you might want to consider getting an assistant or something more of that nature. For the $1,500 or so in most areas you could hire someone fairly competent (figure roughly $10/hour) which should free up your time more for selling. Maybe it doesn't, maybe you need an actual agent, but that's probably what you're up against.

 

[insurance404]

I have debated with my biz coach diff structures. I really do need another agent, already have great assistant.

I mainly want someone half way decent, motivated but not too much, lol. Good with interacting with others but lacks business skills...

1. Commission structure makes them hungry to produce, yet giving a draw income against furure commissions so they can live.

2. Hire hourly employee. Less production motivation, but could give them a per app bonus. Was discouraged from this model as they will produce just enough to get paid from another agent that tried this multiple times.

 

[Aram Fingal]

In my opinion an average hourly wage coupled with an exceptional bonus program and required minimum production is the way to go with this. Set definite time limited goals though. You don't want to give them 3 months to "get up to speed" and then have them quit because they can't. I would start with a trial period of one or two weeks, then have a probation period of 3 to 6 months where they have to meet a monthly requirement every month. After that you could work in an option of allowing them to "make up" for short production months. But never let someone go more than 2 months without hitting production requirements.

Make sure the production requirements are reasonable though, based on what you're paying them hourly. And make sure you bonus heavily for production over that requirement.

 

[WCMason]

I think biggest challenge you'll have is that as soon as they think they know something they're going to want to go out on their own. If they spend any amount of time on this forum they're going to also ask about upfront releases and if they own the book of business. Because of that you might want to consider getting an assistant or something more of that nature. For the $1,500 or so in most areas you could hire someone fairly competent (figure roughly $10/hour) which should free up your time more for selling. Maybe it doesn't, maybe you need an actual agent, but that's probably what you're up against.

I'm surprised at the number of employed or captive agents who don't jump at the chance to go independent once they know enough to do it. Some would rather give up the chance of the greater income potential that would bring over the security of a regular paycheck. You're right that it's a risk every employer takes.

If I were to bring on an agent--and I'm considering it--I'd release on request, but don't believe an employed agent--or any employee of any kind--has any ownership right to business created while employed.

 

[Daytona_Guy]

I need to hire a new agent and haven't done this before, yet have an amazing assistant! Need some tips..

I recently found a podcast that was specific to this topic and I found great value in it. While it's talking primarily about P&C, most of the same principles apply.. really good stuff.

Listen here:
Insurance Marketing with John Carroll - Hiring Producers

Hiring Producers – 25 Tips to Hire Top Insurance Salespeople

"May 23, 2014 - In this 21st episode of Insurance Marketing, I share 25 tips to hire the best insurance salespeople into your agency. "

 

[insurance404]

That's for the great tips!

Will combine many of them. Overall the person working for me will make a decent income...so a bit confused to why it's hard to find someone.

Probably will pay someone hourly with a great bonus program until they want to go full commission.

The ONLY problem is that the busy Open Enrollment period is for 6 weeks (Nov 15th - Dec 31st). People can buy a health plan until Feb 15th, but it will be a lot slower during this time.

Or I could allow them to be a CSR type health employee where they take over my entire Health production and I focus on higher margin products.

 

[dstrack]

In my opinion an average hourly wage coupled with an exceptional bonus program and required minimum production is the way to go with this. Set definite time limited goals though. You don't want to give them 3 months to "get up to speed" and then have them quit because they can't. I would start with a trial period of one or two weeks, then have a probation period of 3 to 6 months where they have to meet a monthly requirement every month. After that you could work in an option of allowing them to "make up" for short production months. But never let someone go more than 2 months without hitting production requirements.

Make sure the production requirements are reasonable though, based on what you're paying them hourly. And make sure you bonus heavily for production over that requirement.

Spot on advice.

"Or I could allow them to be a CSR type health employee where they take over my entire Health production and I focus on higher margin products."

One thing I always ask myself is "Where is the money?" "What are my special/unique skills that can bring it in?"

I try to only do the high value work and outsource the rest. Consistently looking at this keeps me focused and growing.

You would be surprised how many decent agents will stay with you and never go out on their own if you keep them growing personally /professionally and pay them decent, respect them, appreciate them. Tons of people out there who will work hard for $50k/yr as long as they like their work environment.

 

[Stephen]

That's for the great tips!

Will combine many of them. Overall the person working for me will make a decent income...so a bit confused to why it's hard to find someone.

Probably will pay someone hourly with a great bonus program until they want to go full commission.

The ONLY problem is that the busy Open Enrollment period is for 6 weeks (Nov 15th - Dec 31st). People can buy a health plan until Feb 15th, but it will be a lot slower during this time.

Or I could allow them to be a CSR type health employee where they take over my entire Health production and I focus on higher margin products.

You could also wait until you have selected your top candidates and then design the best compensation structure, vs. designing comp and trying to find a candidate that fits.

 

[dstrack]

I recently found a podcast that was specific to this topic and I found great value in it. While it's talking primarily about P&C, most of the same principles apply.. really good stuff.

Listen here:
Insurance Marketing with John Carroll - Hiring Producers

Hiring Producers – 25 Tips to Hire Top Insurance Salespeople

"May 23, 2014 - In this 21st episode of Insurance Marketing, I share 25 tips to hire the best insurance salespeople into your agency. "

Thanks for sharing this Chris. I found some great nuggets while listening.

One trait I look for when hiring a sales position is someone who is curious. I have found that people who are curious about life, how things work, why things are the way they are, etc, etc.. Usually are good at asking questions to prospects and probing for needs.

The other must have trait is grit. I look for people who have a story about overcoming adversity or had their back against the wall and persevered.