WHAT IS your budget line item for "New Producer Expense"? Agencies have line items for charity, postage, autos and many other expenses. But few consider the cost of new producers. Any agency wishing to grow or perpetuate itself needs new producers. Without them, what is an agency's future?
If you don't have a line item for new producers, is it because you don't plan to hire any? Or are you planning to use your cash reserves to cover the cost (assuming the agency has cash reserves, which most don't)? New producers cost money, which has to come from somewhere!
New producers require a sizable commitment and investment. To see how much, consider the chart below, which shows the anticipated expenses for an agency that plans to hire new, inexperienced producers at regular intervals. (The chart also would apply to experienced hires, but the numbers would be different).
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