Insurance brokers and freight forwarders are constantly adjusting their agency compensation plans, whether they’re tweaking their commission rates, adjusting bonus thresholds, or creating other unique perks. These factors can affect both the production and retention of active ingredients.
The latest Insurance Speak podcast features a chat with Seth Preus, the founder of Mivation, who offers insights into a good compensation plan, highlights mistakes companies should avoid, and shares ideas for unique benefits to include in plans.
According to Preus, understanding what the company is trying to achieve in designing a program is important. Does the company want a higher sales volume or better customer loyalty? In addition, there are two aspects to consider: the creation and execution of a plan.
“You need to set different KPIs for success,” he shares, and agents need to understand “what’s in it for them, since the basic purpose is to get them to align with your goals.”
Running the program is as important as creating it, and involves educating the team on aspects such as ways to communicate and sharing details on how they can make more money.
Conversely, there are several mistakes brokers and carriers can make when creating their programs, such as: B. the continuous increase in sales targets until the team reaches a plateau and cannot rise higher.
For more information on creating effective compensation programs, check out the podcast above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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