Punishments for Not Hitting Sales Goals

[todd02]

Wanted to open up some opinions on punishments on producers not hitting their #'s and what some of you guys do or have heard of.

Here is a for instance: Let's say your producers goals are 20k in NB premium, 2 Life policies and 2 umbrella policies per month. (Captured world cross-selling bonus')

Also note that since I'm Captured the Agency can potentially not get a 30-50k Quarterly bonus if my producers do not get 2 life / 2 umbrella a month.

Scenario: First scenario is the Producer hits the 20k NB premium basically every month, but sells NO life or NO umbrella. I want to keep the NB premium production but obviously its detrimental to have a producer not hitting those life and umbrella numbers for the Agency bonus.

Currently I'm giving a boost in commissions if they hit the 2 life 2 umbrella goal. Goes from 30/20 to 40/30. They also get above industry salary.

It's been 4 months since implementing this and neither producer has sold a life or umbrella. Not even one.

We have done write ups, have done trainings, nothing seems to work. Recording calls and training from those recordings.


My last resort is hiring a Life specialist to work my book. Then also hire a commercial specialist to hit my business numbers. (umbrella = business). If my Agency does that then my salary and commissions will have to be reduced to the other producers.

Thoughts?!?

 

[DHK]

Are they trained? (Trained is different from licensing.)

Do they have a process that they adhere to 100% of the time?

Are they quoting on price? Or are they doing a fact-find to determine total assets & liabilities to provide proper protection? (You may have mentioned this in earlier posts, but I'm too lazy to look it up to suggest ideas to solve your problem.)

Without some method of fact-finding... you can't make the recommendations of umbrella or life policies. Auto & homeowners are, by and large, required coverage that most people buy on 'need' - which means they want to spend the least amount of time and money on it.

"If you have a problem, turn it into a process... and it won't be a problem anymore." - Ben Feldman

Before you figure out disciplinary actions, I suggest looking in the mirror and ensure that YOU have given them the training and tools to help them accomplish the goal in the first place. Otherwise, they're just going to resent you for forcing a goal that they are ill-equiped to accomplish.

Here is one method you may want to consider testing out:
http://fsonline.com/Simpler_Way.pdf

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It wouldn't be hard to create a 1-page "check-off" questionnaire for every prospect to complete before running quotes and determining appropriate coverage recommendations.

 

[todd02]

Are they trained? (Trained is different from licensing.)

Do they have a process that they adhere to 100% of the time?

Are they quoting on price? Or are they doing a fact-find to determine total assets & liabilities to provide proper protection? (You may have mentioned this in earlier posts, but I'm too lazy to look it up to suggest ideas to solve your problem.)

Without some method of fact-finding... you can't make the recommendations of umbrella or life policies. Auto & homeowners are, by and large, required coverage that most people buy on 'need' - which means they want to spend the least amount of time and money on it.

"If you have a problem, turn it into a process... and it won't be a problem anymore." - Ben Feldman

Before you figure out disciplinary actions, I suggest looking in the mirror and ensure that YOU have given them the training and tools to help them accomplish the goal in the first place. Otherwise, they're just going to resent you for forcing a goal that they are ill-equiped to accomplish.

Here is one method you may want to consider testing out:
http://fsonline.com/Simpler_Way.pdf

----------

It wouldn't be hard to create a 1-page "check-off" questionnaire for every prospect to complete before running quotes and determining appropriate coverage recommendations.

..... totally off topic. Already said we do massive amounts of training. I'm asking about disciplinary actions for the above.

 

[DHK]

I didn't think that this was off-topic: "If you have a problem, turn it into a process... and it won't be a problem anymore." - Ben Feldman

However, you set out a goal that they agree to in writing, and if they don't reach it, you write it up for their file. Informal, formal, then termination. Document everything. Once they hit their goals for a period of time, they are off of "counseling". Since your time frame is monthly, I'd wait to get results for 3 months before removing them from being "on counseling" status.

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You're not a babysitter and you're not a parent... although management often feels like both. Treat them like an adult and write it all up.

 

[VolAgent]

Four months and not a single life or umbrella policy from either one means you have a problem.

The question is, do they simply not want to do it, still don't know how, or don't have the right prospects?

My gut is the first or a variation on the second. They either don't believe it is important, don't see the value or simply are uncomfortable. Assuming you have addressed all these then you have a decision to make. Sure you can punish them. Start writing up a disciplinary note for failure to meet their goals with continuing to fail leading to termination. The question to you is, will you find someone better or even just as good?

Depending upon how good they are at capturing both home and auto, 6 month versus 12 month policy and your local premiums, it looks like they are adding somewhere between 10-30 households a month? I would have to think they would have just lucked into a life policy by now.

 

[goillini52]

..... totally off topic. Already said we do massive amounts of training. I'm asking about disciplinary actions for the above.

Serious question......if they haven't sold a policy in 4 months, how well trained can they be? Maybe the problems in the training.

 

[insurance1822]

I call this the captive squeeze. If you're growing your P&C book who the eff cares about umbrella or life policies? Of course you HAVE to b/c they tie it into essential compensation. You're going to be bullied around by Farmers trying to jump through their hoops like this your whole life bruh.

I knew the top financial services guys at Allsnake years ago & agency's w/ the most life/financial production weren't the best b/c their producers were writing life....they were the best b/c their staff was getting the financial services specialist warm prospects to call. their staff were forced to ask if it's OK for the financial specialist to call them. Then it was on the EFS's (exclusive financial specialists) to get the appointment scheduled. Other times the agency owner would make the follow up calls to new clients (as per the producer warming it up so they expect it..) and they'd use their jedi phone skills to set the EFS an appointment. I think that's all you can ask from producers.

Now if Farmers has quick issue life plans that don't have much UW besides a few questions & that can contribute to app count? Well only way I saw agencies get producers to sell them was automatically include the cheapest life plan in ALL quotes. Aka our price is $150/month which includes a life insurance policy blah blah blah. You'll get 1/10 who just pay the extra $20/month for a crap life policy b/c they figure why not if they're saving money. That's also....the state farm way.

I'm surprised Farmer's hasn't introduced an EFS position yet considering they're all ex Allsnakers.

There's a reason that many of the long term *top* producing Allstate offices have since opened IA's in their wives/kids names. Because the bonus that Allstate dangles in front of them w/ B.S. production requirements can be made year after year on an IA book's renewals after 2-3 years where they don't have to play the games. Think about it bruh

 

[Gulfman]

FROM what i can glean, you've tried what you know for 4 mths. No results.

Get some specialists in there. Not everyone can sell life and Umbrella.

That being said, I like 1822's idea....

 

[todd02]

I think it's a comfort thing selling over the phone. Selling a ton of products is very difficult over the phone but can be done.

Am thinking a specialist route to not be the most efficient way but most practical way to go. Like the feedback.

Yes they are adding around 10-15 new households a month so replacing that is doable but it's an average good producer. I've learned not to chase amazing Producers and keep good p&c ones. Maybe I'll just start messing with renewal compensation a little more dramatically if they can't even sell 1 umbrella or life a month.

Yes farmers offeres simple underwriting and immediate issue life policies. Twice the price of life policies that UW is done on but they are still "cheap" if it's a 20-40 yr old that's healthy.

 

[VolAgent]

I think it's a comfort thing selling over the phone. Selling a ton of products is very difficult over the phone but can be done.

Am thinking a specialist route to not be the most efficient way but most practical way to go. Like the feedback.

Yes they are adding around 10-15 new households a month so replacing that is doable but it's an average good producer. I've learned not to chase amazing Producers and keep good p&c ones. Maybe I'll just start messing with renewal compensation a little more dramatically if they can't even sell 1 umbrella or life a month.

Yes farmers offeres simple underwriting and immediate issue life policies. Twice the price of life policies that UW is done on but they are still "cheap" if it's a 20-40 yr old that's healthy.

KISS

Tell them to simply ask or maybe not even ask and just include a life and umbrella quote with every quote or policy.

They should sell some life policies that way. Probably not umbrellas. Especially if they tell people a life policy will get them a discount, assuming it does.