Secrets to successful insurance compensation plans
Seth Preus of Mivation discusses creating a good compensation plan, mistakes to avoid and offers ideas on how to pay commissions.
Insurance brokers and carriers are constantly adjusting their agency compensation plans, whether it’s fine-tuning their commission rates, adjusting bonus thresholds or creating other unique perks. These factors can affect both the production and retention of agents.
The latest Insurance Speak podcast features a conversation with Seth Preus, founder of Mivation, who offers insights into what comprises a good compensation plan, highlights mistakes companies should avoid and shares ideas for unique benefits to include in plans.
Preus says it’s important to understand what the company is trying to achieve when it comes to designing a program. Does the company want higher sales volume or better retention? In addition, there are two aspects to consider: the creation and the execution of a plan.
“You have different KPIs to set for success,” he shares, and the agents need to understand “what’s in it for them since the fundamental purpose is to get them to align with your goals.”
Execution of the program is just as important as its creation and will involve educating the team on aspects such as ways to communicate how they are doing and share details on how they can make more money.
Conversely, there are several mistakes that brokers and carriers can make when it comes to creating their programs, such as continuously increasing sales goals until the team hits a plateau and can’t go any higher.
For more information on creating effective compensation programs, listen to the podcast above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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