Recruiting Recent College Grads For Advanced Markets Can Work

Once an appointment is made and a prospect becomes a planning client, the apprentice will serve as the case manager. “Theres no better training environment than seeing a case from start to finish,” he said.

Here, the apprentice accompanies the mentor on all client calls and is involved in all case design meetings–then he will run the illustrations, prepare the presentation and analyze the clients portfolio. This is the task where the new agent will learn a great deal as each case goes from application to issue, Ungashick said.

Finally, the apprentice is responsible for market research activities. This is where “we identify how the apprentice will step out from under the mentor,” Ungashick said. Here the apprentice will identify new opportunities in his or her market, either through trade associations, new centers of influence or possible tangential market niches.

In addition to performing these tasks, apprentices are expected to go through a very structured, extensive training program covering many advanced market concepts. Classes are conducted at the agency where attendance is required. Areas covered include business exit planning, investment planning, retirement and executive benefits planning, and estate planning.

“Were not making them experts,” added Ungashick. The purpose of the training program is to qualify them to speak with prospects about planning strategies that may be appropriate for the prospects situation, he said.

Furthermore, these new recruits are expected to sit for the CFP designation before the end of their third year.

In addition to a financing arrangement with their primary carrier, Met Life, apprentices are entitled to a commission split with their mentor. In an agents first year, there is a 25%/75% split. This goes to 50%/50% in the second year. By the agents third year, joint work and commission splits are left between the two individuals, Ungashick explained.

This structured program at the Madison Financial Group has resulted in an average fee per plan by new associates of $2,450, he said, compared to the industry average of about $1,000. For those plans developed, they have a 90% implementation rate, and the average first-year commission is about three times the fee charged.

The academic record for these new recruits is outstanding, Ungashick said, with a 100% pass rate on the CFP exam over the last five years.

For agencies looking to start recruiting more college graduates, Ungashick warns that its important to start out small–bring in only two or three the first year.

Its also important to identify who will be mentors, and to make sure that their methods and training are consistent with what the agency will be providing. “Mentors should not necessarily be your biggest producers,” he said.

Finally, the mentor and the agency need to establish specific performance standards for each new recruit. “Performance standards should be different for every situation, because every market is different,” he said.

Reproduced from National Underwriter Edition, March 24, 2003. Copyright 2003 by The National Underwriter Company in the serial publication. All rights reserved. Copyright in this article as an independent work may be held by the author.