2004 Best Practices Study
AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000
PRODUCER INFORMATION A. New Producer Hiring
"The cost is almost unaffordable for a small agency. We have suc- cessfully done this twice only to have the large bro- kers 'buy' the sales person away from us once trained." This statement reflects one of the most serious problems faced by agencies of this size, one that drives many agencies of this size to merge or sell to a third party.
% of Agencies that Hired a New Producer During Last Fiscal Year
26.7% 37.5% 50.0%
Number of New Producers Hired
Average Annual Compensation Per New Producer
$30,180 $18,000 $31,655
Where New Producers Were Found
Outside of Industry* 25.0%
“Successful” New Producers 83.2% of producers hired over the last 5 years have met their production goals.
Directly from college or graduate school 25.0%
Another insurance broker 50.0%
An insurance carrier 0.0%
SERVICE STAFF INFO
*Other industries mentioned most often include Financial, Stock Brokerage, Manufacturing, Medical/Pharmaceuticals, and Office Equipment/Furniture.
Future Hiring Plans
% of Agencies that Plan to Hire a New Producer During Current Fiscal Year
46.7% 50.0% 62.5%
Number of New Producers to be Hired
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