Frequently Asked Questions
The 2022 pricing for TSD services is as follows:
- $7,500 for an experienced producer
- $5,000 for sales professionals from outside the insurance industry
- $2,500 for candidates found outside of the requested search
There are multiple ways to request a search for a new producer through TSD, including:
- Talk with your agency partner (AP) who will work with our team to schedule an intake call.
- Contact us directly:
- Brent Davis:
- Phone: 435-865-2987
- Email: brent-davis@leavitt.com
- Rylee Kruger:
- Phone: 530-957-0883
- Email: rylee-kruger@leavitt.com
In situations such as agency leadership perpetuation and migrating large commercial books, hiring an experienced producer is likely necessary. Our team sees the importance of such and has the capability to help. However, statistical data strongly supports a higher rate of return from hiring outside of the insurance industry.
On average, outside-the-industry candidates cost less and produce more.
See the TSD producer statistics below.
Generally, a successful producer will not leave an agency where they have built a profitable book of business. On the other hand, unsuccessful producers who have been terminated or are about to be terminated are more than willing to entertain a producer role with a new company. When focused on hiring a producer with previous industry experience, it can be easy to overlook critical attributes. A producer who has failed at one or more agencies is likely to fail at your agency as well.
The short answer is there is not a best industry. Nearly every type of company has a sales team of one form or another. While we like to see individuals who have consultative sales backgrounds, our focus is on four main attributes:
- Personality – ability to connect with and relate to other people.
- Sales skill – ability to get in front of decision makers and close deals.
- Technical aptitude – intelligence to learn a complex industry and sales process.
- Poor, Hungry, Driven (PHD).
There are many talented salespeople in the tech and medical device industries. Our team talks with salespeople from these industries regularly. While it is not difficult to find an impressive salesperson in medical device or tech sales, it is difficult to come to a financial arrangement with them. If skilled, they are typically making a significant amount of money – well above an amount that it would be wise to pay to an investment producer.
We suggest a declining base over a four-year period, plus standard commission.
Our goal when recruiting is to capture candidates who have had sales experience but are looking to take the next step up in their career. In most cases, these professionals have families to support, housing costs, and bills to pay. To these individuals, a base pay is attractive.
Furthermore, we believe paying commission above the base beginning in year one is more motivating to a new producer than commission to repay a draw.
The average base for producers hired through TSD is $63,627 per year. The median is $60,000 per year.
To use the median as an example, a new producer’s base pay (technically called “commission subsidy”) would pare down as follows:
- Year 1 $60,000
- Year 2 $45,000
- Year 3 $30,000
- Year 4 $15,000
- Year 5 $0
Average annual sales goals for new producers varies by agency, but we would hope the new producer could generate AT LEAST HALF of their year 1 base in their first year of employment.
From sales competitions to a trove of training resources, Leavitt Group’s Sales Force Development Group is committed to seeing each new producer succeed. However, the most critical training happens at the agency level. Those tasked with mentoring should expect to be actively engaged with the new producer for 12 months. Mentoring takes commitment, but it gives the greatest probability for sales growth and the lowest probability of wasted investment dollars.
After the TSD team visits with agency leadership for a pre-search intake call, expect the search process to take four to six weeks.
During the first three to four weeks, our team will be reviewing hundreds of resumes and profiles. Depending on the population size of your area, we may only interview 5 to 20 candidates on the phone. Once we have built a line-up of final candidates (ideally three to six), a member of our team and your agency partner (AP) will conduct face-to-face interviews via Zoom or at your office.
At the end of the process, we hope to introduce you to one to three well-screened individuals.
If, unfortunately, we are unable to identify any worthy candidates, we will start the four-to-six week process over again.
The purpose of the intake call is to help our team better understand the history of your agency, your sales goals, the type of people who work best with you, and scratch the surface on becoming acquainted with your community. We want to sound and act like part of your team as we talk with candidates.
Prepare to discuss items such as:
- Industries that you specialize in or that you want to focus on.
- Your geographic area and where potential candidates may live.
- Compensation structures.
- Referral candidates from you and your agency's top performers.
When an investment producer is hired, the last thing wanted is for that producer to terminate or fail before all investment dollars have been recouped. Currently, about 40-45% of producers hired though TSD are still employed with Leavitt Group. Industry average is around 25%. Our retention rate is understandably higher because many industry peers use a “spray and pray” approach to finding talent whereas we are more intentional.
It is important to note that retention is not all about finding the right person. Proper mentorship, compensation, leadership, and agency culture are all factors that nurture success and promote loyalty.