After 14 years in takaful industry, PT Asuransi Takaful Keluarga had decided to review their agency structure and compensation comprehensively. I had voiced my concern on the effectiveness of the agency about 1 1/2 year ago and alhamdulillah the concern had been translated into reality.
Life or family agency may comprise of 2 - 6 tiers depending on the strategy. However, my personal opinion is that the ideal is 3 tiers as proven successfully in many countries including Malaysia. Whatever it is, the management should understand the philosophy behind the tiers.
3 tiers meaning 2 leaders; 4 tiers meaning 3 leaders; etc. As long as the management understand the philosophy perfectly, there is no issue with regard to the number of tiers. To appoint someone as agency leader, he/she should be prepared to exhibit certain minimum criteria as a leader or supervising roles. He/she must be able to conduct relevant trainings for subordinate including products, selling skill, etc. Skill of basic management is also required to ensure that the team under him is effectively manage for optimum result.
As a result, the leaders are then entitle for the allocated overriding commissions upon sales made by his agents. The agents will not feel any dissatisfaction should the leader play his role accordingly.
The management should then focus on developing the leaders who will then develop their downlines. This concept is adopted in MLM or multi-level marketing organisations throughout the world.
