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THEFUTUREOFPRODUCERCOMPENSATIONcontinuedfromPage15page16APublicationofIndependentInsuranceAgentsofWVOwnersthoughwillbeburnediftheyemployproducerswhocannotreallysell.Theseemployeeswillimploretheagencytopayforalltheirtoolswithoutthemputtinganyskinintothegame.Ihaveseenthistimeaftertime.Performanceimproveswheneveryonehasskininthegame.IfIwereaproducerwhocouldnotsellIwouldabsolutelynotwanttoputskininthegamebecauseIx19dbeadeniteloser.Agenciesthatactnowhaveagreatfuture.Combinesalestoolswithrenedproducercompensationnowsoyoucantakeadvantageofyourslowercompetitors.Whencompaniesreallybegintopaycommissionratescommensuratewithdoingnothingbutdeliveringpoliciesthoseagenciesstillindenialwillbedoomed.Whenapolicyisrenewedyearafteryearwithnoproactivecontactwiththeclientitisridiculoustoarguethattheagencyisworkingforthecommission.Yetmanyagenciesrelyonthisbusinessmodelbecausetheycannotaffordtoregularlytoucheveryclient.ImaginethenwhathappenswhentheyfeelcompelledtoprovideproducerswithbettertoolsProceduresandPayAnotheradvantagesophisticatedagencieshaveistheirproducersmustalreadyfollowprocedures.Iestimatethatmorethan90percentofallproducersarenotrequiredtofollowtheiragencyx19spoliciesandproceduresexceptmaybeinacoupleofkeyareassuchasturningmoneyovertotheagencyimmediately.Themostsophisticatedagenciescompletelyunderstandhowproducersnotfollowingprocedurescreatehugeinefciencies.Topayforthetoolsandextrastaffthatenabletheseagenciestoworkproactivelyallthetimewithclientstheyhadtogetmoreefcient.Sotheydemandproducersfollowprocedures.Thesophisticatedagenciesarealreadyahead.Togetaheadofallothersandtocatchupwiththeonesthathavegonebeforemakeyourproducersfollowprocedures.Tiecompensationandfollowingprocedurestogetherandtheagencywinsthejackpot.Providingsalestoolsincreasesthecostoftheservicingplatform.Producerswhofollowproceduressignicantlydecreasethatextracost.Myrecommendationistonotpayproducersiftheydonotfollowtheagencyx19sproceduresonanaccount.Iftheproducerprofessesthattherulesaretoocomplexmaketheproducerpayforadditionalstaff.Makethemputskininthegame.Otherwiseallthesalestheymakewillonlymovetheagencyclosertobankruptcy.Agenciesdonotowetheirproducersthesetoolsforfree.Someagenciesmayprovidethemforfreebuttheseagenciesarerarelygoingtobelongtermcompetitors.Theindustryhasalreadychanged.Fewagenciesseemtorecognizethetruescopeofthesechanges.Theagenciesthatdoandactuponthemhavethebrightestfuturesever.Ilookforwardtoexperiencingitwithmyclients.ChrisBurandisthefounderandownerofBurandAssociatesLLCbasedinPuebloColo.Phone719-485-3868.E-mailchrisburand-associates.com.Visitusonlinewww.iiawv.org