Farmers Insurance to Cut Commissions and Increase Bonus.

[insurance1822]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

Ya so when I teach my kids about vetting sales people? Lesson 1 will be "Avoid any salesman using "magical" and "unicorn" in their sales pitch."

SNAKE OIL

 

[todd02]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

Ya so when I teach my kids about vetting sales people? Lesson 1 will be "Avoid any salesman using "magical" and "unicorn" in their sales pitch."

SNAKE OIL

110%. Especially the unicorns that promise everything and can solve everything.

 

[Matt37]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

Sorry not accepted.

----------



It's not a "fixed time" cost. A good software company grows and enhances their product and continually builds new versions. Average Senior level engineer is 120k a year. We have 6. I am about to hire on another 15 once we close a major round of funding.

Some other cool things that we are looking into is voice recognition analytics. It can transcribe 99% of all phone conversations and analyze what the best producers are saying that close sales. Huge for call centers like progressive and geico.[/QUOTE]

Talk to any senior producer in this industry and they can tell you exactly what successful producers do in 10 minutes, no voice recognition analytics necessary.

In all seriousness, I do see what you are saying and think some of this stuff might have its place in the personal lines world.

But Blockbuster was selling commodities, Sears was also selling commodities... Amazon and Netflix figured out a way to do it cheaper and easier.

Insurance is not a commodity and I personally like when people try to find ways to automate and do it easier .. because the losses develop much faster and they are out of the market place much quicker.

 

[todd02]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

Sorry not accepted.

----------



It's not a "fixed time" cost. A good software company grows and enhances their product and continually builds new versions. Average Senior level engineer is 120k a year. We have 6. I am about to hire on another 15 once we close a major round of funding.

Some other cool things that we are looking into is voice recognition analytics. It can transcribe 99% of all phone conversations and analyze what the best producers are saying that close sales. Huge for call centers like progressive and geico.[/QUOTE]

Talk to any senior producer in this industry and they can tell you exactly what successful producers do in 10 minutes, no voice recognition analytics necessary.

In all seriousness, I do see what you are saying and think some of this stuff might have its place in the personal lines world.

But Blockbuster was selling commodities, Sears was also selling commodities... Amazon and Netflix figured out a way to do it cheaper and easier.

Insurance is not a commodity and I personally like when people try to find ways to automate and do it easier .. because the losses develop much faster and they are out of the market place much quicker.

Sure they can tell you what works but it's more so for management to monitor a group of sales reps making sure they are using that language. That's the point.

Automation increase efficiency which increases overall success.

 

[indienoise]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

There is a bit of a disconnect between what the two of you were talking about witches of course automation of processes and automation of actual sales. One of those is good in this industry and the other is not.

 

[todd02]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

Automation of processes obviously.

 

[Warrior]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

No the new bonus structure is an agent must sell ALL lines of business to qualify for the major quarterly bonuses. They are basically robbing smaller agents to help pay and grow producing Agents. Clearing out the older, sit on their book and don't produce Agents. Makes sense in a way if I'm corporate. BUT we are already growing big time so I wonder why they want to grow faster if our combine Ratios are terrible with auto.

No, they are squeezing the commissions to nothing and eventually will be paying you to sell a certain amount every month or not get paid and get fired. Farmers is raising rates, lowering commissions and creating a feast or famine mentality. I'm happy I left those days behind and became an Independent Agency. I make more money and don't have to deal with constant pressure to earn a trinket like a plaque or trophy. I finally get to earn over $500k a year, my way.
Cut while you can still afford to leave.

 

[todd02]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

No, they are squeezing the commissions to nothing and eventually will be paying you to sell a certain amount every month or not get paid and get fired. Farmers is raising rates, lowering commissions and creating a feast or famine mentality. I'm happy I left those days behind and became an Independent Agency. I make more money and don't have to deal with constant pressure to earn a trinket like a plaque or trophy. I finally get to earn over $500k a year, my way.
Cut while you can still afford to leave.

They're making a smart business decisions weeding out non producing agents or agents that write bad mono line business. My agency will end up making 20% more with the bonus'. Of course the software biz is where the real money is.

 

[insurance1822]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

They're making a smart business decisions weeding out non producing agents or agents that write bad mono line business. My agency will end up making 20% more with the bonus'. Of course the software biz is where the real money is.

It's a shame that agents have built a BOB & may decide to focus more on retention or financial products vs the P&C grind...and then everything is taken from them. Sounds like a great company to handcuff yourself too & a great long term proposition for both earning potential & freedom to run your business as you see fit. Man, what was i thinking going IA?

 

[todd02]

Re: Farmers Insurance to Cutt Commissions and Increase Bonus.

It's a shame that agents have built a BOB & may decide to focus more on retention or financial products vs the P&C grind...and then everything is taken from them. Sounds like a great company to handcuff yourself too & a great long term proposition for both earning potential & freedom to run your business as you see fit. Man, what was i thinking going IA?

So an Indy doesn't have to deal with commission cuts, profit bonus adjustments and Underwriting changes?! Oh wait, they can just roll their ENTIRE book over to another carrier for the same/less commission... oh and they have to be competitive or you'd lose business on the transfer.

Doesn't matter if you're Captive or Indy anymore. The industry is shrinking Agents and going to incentivize differently to stay competitive.

Why the hell would you sell your bob anyways? Get 2x revenue or sit on it for 5 to get more money.