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THEFUTUREOFPRODUCERCOMPENSATIONbychrisburandItisafactthatmanypeoplewiththetitlex1cproducerx1ddonx19tproduce.Theyserviceandtheyacceptwhatcomestothembuttheydonotproduce.Itisalsoafactthatcompaniesaregoingtondawaytominimizewhattheypayagencies.Afterwatchingbenetscarriersdrasticallyreducecompensationwithoutrealizingdrasticlossespropertycasualtycarrierswillcertainlyfollowtheirlead.Benetscarriershavelearnedtheydonothavetopayagentsatleastnotforsmallaccounts.SureObamaCareplaysintothisbutthewritingisonthewall.Andevenifcompanycompensationisnotcutgoingforwardproducersandagenciesaregoingtohavetodomuchmoretoearntheirmoney.Thisisnotax1cdoomandgloomx1dfuture.Clearlysomeagencieswillcontinuetheirpaternalisticandegodrivenmodelofemployingnon-producingproducersforaslongasdenialtrumpsnancialreality.Thegreatnewsisforthoseagenciesandproducersthatareinnovativeandwanttobringmorethananinsurancepolicytotheirclientsthefuturepromisestremendousrewards.Theagenciesthatactrstwillgainalonghead-start.HowProducersGetPaidProducerpayhoweverhastochange.Mostagenciesarefarbehindinrecognizingthis.Thelargebrokersandmoresophisticatedagencieshaveabigheadstart.Thefactisthatinordertodeliverthevaluethatwillberequiredproducershavetotakeapaycut.Thisisnotasbadasitsoundsbecauseevenatalowerpercentagethebestproducerswillmakemoremoneythaneverastheytakeovertheaccountsofalltheproducerswhodonx19tproduceordonx19trealizetheworldofinsurancesaleshaschangedforever.Somesalesconsultantsareontherightpath.Theyarepreachingthatagenciesx19opportunitieslieinbringingx1cvalueaddedx1dservicestoclients.x1cValueaddedx1disinquotationsbecausetheeffectivenessofthedifferentmessagesvariesconsiderablywithsomeconsultantsnoteventellingtheirclientsclearlywhatthosevalueaddedservicesare.TheonesdeliveringthetruestmessagesaregivingsomeofthebestsalesadviceIhaveheardinmy25yearsinthisindustry.Anyofthesesalesconsultantswhosuggestagenciesoffertheseserviceswithoutsuggestingtheagenciesx19producerspayforitareonlyadvocatinggrowthnotprotsandnotsurvivability.Ihaveseenagenciesbarelymakepayrollasaresultoffocusingonthesestrategieswithoutunderstandingthecostofthesestrategies.Thesevalueaddedservicescostmoneysometimesseriousmoney.Atthesimplestlevelsomeweb-basedmarketingprogramsarereportedtocost50000annually.Theaverageagencytodayhasaprotmarginof0percentonacommissionbasis.IfaproducerispaidthesameforsalesgeneratedbythewebsiteastheyareforsalestheygenerateontheirownhowisitaffordableSomeotherprogramseasilyexceed100000whenthecostoftrainingpersonnelsoftwareandothertoolsareconsidered.Theseeffortsshouldbenetproducerssowhyshouldnx19ttheypayatleastpartofthepriceBigAgencyAdvantageThisiswherethebigagenciesaresofarahead.Theygenerallypayhalfofwhatnormalindependentagenciespayproducers.Manyagencyownersdonotunderstandthiscompletelyandmakethemistakeofcontinuingtopayproducersnormalcommissions.Paying40percentwhentheproducerdoeseverythingmaymakesense.Whycontinuetopay40percentwhentheagencyhastoeffectivelypayanextra3percenttoprovidethetoolsnecessaryforfuturequalitysalesToputitinperspectiveaconsultingrmusedtopublishanannualstudyonproducercompensation.Everyyearthepressreleasewouldbethesamex1cProducersatlargeagenciesarepaidsignicantlymorethanproducersatsmallagenciesx1dTheheadlinewascompletelywrongeveryyear.Producersatlargeagencieswerepaidsignicantlyless20percentversus40percent.Howevertheymademorebecausetheirbooksweresomuchbiggerthattheymadeupthedifferencebetween20percentand40percent.Forexample40percentat200000is80000and20percentat800000is160000.Givetherightproducersthesetoolshavethempayforthemandeveryonewillmakemorethanever.page15APublicationofIndependentInsuranceAgentsofWVcontinuedonpage16Iwillnotacceptpolicychangesfromathirdparty.Iwillnotacceptpolicychangesfromathirdparty.Iwillnotacceptpolicychangesfromathirdparty.IwillnotacceptpolicycCONTACTVALERIETONEYTODAYYoucarryprofessionalliabilityinsurancetoprotectyouintheeventofaclaim.ButisyourcarrierhelpingyoutopreventaclaiminthefirstplaceTheBigx1cIx1dhasdedicatedsignificantresourcestobringingthebestclaimspreventioninformationandstrategiestoyouragency.Andwhilewewontreallymakeyouwriteitoutonachalkboardwebelievethatthebestwaytoprotectyourbusinessistohelpyouprotectyourself.ATTHEBIGx1cIx1dPROFESSIONALLIABILITYPROGRAMWETAKECLAIMSPREVENTIONVERYSERIOUSLY.