What if producers got tips instead of commissions?
This is just one of the interesting concepts brought up in a new book, “Flirting with the Uninterested,” by Maria Ferrante-Schepis and Maddock Douglas founder Mike Maddock. Ferrante-Schepis is managing principal of insurance and financial services at Maddock Douglas and Life Insurance Selling’s newest monthly columnist, .
Beforedismissing the idea as outlandish, think for a minute about the reasoning behind the concept. Many would-be producers shy away from the industry because they don’t want to starve on commission while building their business. This could be a way to circumvent that problem. In the workbook section at the end of the book, the case is made (admittedly in much more detail) roughly in this manner:
“In today’s model, producers are expected to work on commission from the get-go. In this new model, perhaps they could receive a small salary and have an initial upside in tips.”
In today’s society, people often make tipping decisions based on “social norms.” As the book says, “How many times have you gone into a restaurant and tipped someone who you thought just gave you average service? Maybe even below average? Why do you do that? Because it is the ‘norm.’”
The book also points out how paying for a cab ride with a credit card through an automated system in the cab now presents you with automatically calculated “suggested” tips of 15, 20, 25 or even 30 percent! “People, as a rule, will do the socially correct thing. So, do you really think they would stiff the insurance agent if they knew he was working for tips?”