Sometimes money is a powerful incentive.
1 min read
Many of my clients have been clamoring for a fresh new perspective on creating highly incentivized compensation schemes for their producers with the objective of making them more accountable and for providing unlimited earning potential.
So how did we do this? I mixed and matched from similar industries and related sales organizations to come up with what we have termed the, “”Declining Base Salary Structure”” (DBSS).
The DBSS has five unique characteristics: 1) A base salary for some number of months during Year One; 2) Activity-based benchmarks used to determine quarterly bonuses; 3) a reduced commission rate during the first year only; 4) A declining salary over 24 months commencing in Month 7; 5) A ten year vesting schedule to provide ownership over a long period of time to incentivize a producer to stay a long time.
This structure is being adopted by many local insurance agencies/brokers right now and is changing the way (commercial lines) and Employee Benefits are compensated in the WDC metropolitan area.
Please give us a call and I will send you the spreadsheet.