Evolutionary Distribution Channel
February 17, 2021 by Sheryl J. Moore
Late-night, sleep-deprived idea; how about we-
1. Save the insurance distribution from “dying off;”
2. Recruit more people of color into this business;
3. Recruit more females into this business; &
4. Create an “income glidepath” for those newly-entering the insurance business?
This provides salespeople the financial (safety?)/support that they need in the early years of their business. Yet, over time they can smoothly transition to an income model that allows them to support their clients’/prospects’ needs, while also increasing their own profitability.
A new “Evolutionary distribution” channel, could initially pay recruits a salary, with benefits (think career);
After [x duration], the freshman would begin a slow transition from being paid by salary, to a commission-based revenue, featuring an annual trail commission (think PPGA); and
Once the “newbies” are 100% commissioned w/trails, we begin a another slow transition to 100% fee-based revenue which favors both the salesperon and the client (think independent/RIA).
This new distribution may have the potential to completely eliminate the BIGGEST objections most prospective salespeople have today. WHAT AM I MISSING? -sjm