Profit Sharing

In developing the Agency Production Bonus, we researched other IMO’s plans, with a target of creating a plan that truly reflects the foundation of PIE, “Designed by Agents for the Benefit of Agents”.

When we examined other plans, we kept coming back to the same question. If an IMO was only willing to allocate 10% or 15% of their profits to the agents, where does the other 85% to 90% end up? If they truly believe that the only reason for their existence is to support their agents, then why such a lopsided division of the profits?

Now we realize our business plan is significantly different than most other IMOs. We aren’t focused on recruiting as many agents as possible; rather, we are focused on developing the business practices of each agent who calls PIE their home. Therefore, we don’t need to spend hundreds of thousands of dollars on advertising and recruiters.

PIE has designed its Agency Production Bonus targeting a majority of the yearly profits being allocated to the profit sharing pool.

Share Allocation Formula

Each PIE agent will earn one (1) share for every $5,000 of net agency revenue their production contributes to PIE. Obviously, the more production, the more contribution to the agency and the more shares an agent earns.

There are several factors that influence the amount of revenue an agency receives from a particular sale. Some carriers pay a higher spread to the agency than others. Some rollover business delivers lower revenue to the agency.

The most equitable way to distribute the profits of the agency is to distribute them based on each agent’s actual contribution to the agency’s revenue.

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Marketing Bonus

As producers ourselves, we understand that marketing drives production. We also understand that a big expense of any independent agent is marketing.

As an agency Designed by Agents for the Benefit of Agents, we are fully aware of the importance of a good marketing program. When everything is said and done, it is the combination of a quality appointment in the hands of an insurance professional that creates success. We are also fully aware of the costs associated with marketing and have a reimbursement program that makes other competitor’s plans pale in comparison.

The Plan is Simple

• Bonus starts at $1,000 for $500,000 in annual premium.
• Bonus increases by $500 for each additional $500,000 in premium.

Now that may sound good but what does it really mean to you at various levels of production and how does it compare to the marketing plans of other agencies?

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Annual Trip

PIE trips have been memory makers for every agent that has been able to join the fun!  Take a look at a video montage of PIE’s 2011 trip to Puerto Rico.

http://www.youtube.com/watch?v=8c92_sJZ6U8

Costa Rica in 2013

Professional Insurance Elite would like you to join us at Los Suenos Marriott in Costa Rica. Check our Costa Rica 2013 – E-Brochure to see how you can qualify for a 4 night, 5 day stay for you and one guest at this luxury resort.


Click to see how to qualify

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Recruiting Program

It is not a goal of ours to be another “recruiting” machine whose primary focus is on how many agents we can get to join our agency. What we have observed in those “mega agencies” is an erosion of the individuality of the independent producer. This impersonal style of running a business directly conflicts with the foundational design of PIE, “Designed by Agents for the Benefit of Agents.”

Our five year plan is based on PIE exiting our fifth year with 150 elite agents averaging $3M to $4M per agent in premium production. We realize that there will be normal attrition due to a variety of reasons, and therefore, must consider our options when it comes to recruiting. Previously, we have utilized outside recruiting companies, which resulted in an average recruiting cost of approximately $20K per agent.

While we were still considering our recruiting options, several PIE agents inquired about inviting others to join the PIE family. Obviously, the idea of having existing PIE agents involved on a personal basis in the recruiting of agents to PIE was attractive. We would much rather see someone internal to PIE reap the financial rewards, rather than an outside recruiting agency.

How it Works

We want to keep the plan simple and easy to understand and administer. On normal full commissioned products, the recruiting agent will earn a bonus based on the premium production of the agents he/she recruits to PIE. The bonus in months 1 through 12 will be 25 bps (1/4%). In months 13 and all subsequent years, the recruiting agent receives 10 bps (1/10%) of the revenue attributable to their recruits. The chart below shows the bonus earned at various levels of production:

Premium	Year 1 Bonus	Year 2 & All Subsequent Years
$1,500,000	$3,750	$1,500
$2,000,000	$5,000	$2,000
$2,500,000	$6,250	$2,500
$3,000,000	$7,500	$3,000

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