shoptalk
Facebook
Twitter
LinkedIn

In this episode of The Power Producers Podcast, David Carothers shares his expertise on how to structure fee agreements and recoup costs when auditing accounts and discusses the importance of being transparent about compensation with clients. 

Episode Highlights:

  • David discusses the process of auditing accounts including how to split fees with clients and which policies are included in fee agreements. (2:42)
  • David shares the reason why he prefers to engage with clients a month after their account renewal. (6:32)
  • David discusses how to handle mistakes found during a mod audit and ways to get paid for correcting them. (9:54)
  • David explains the importance of investing in relationships with clients and how to budget for third-party loss control services. (16:13)
  • David discusses the three ways to structure a fee agreement. (17:40)
  • David suggests pitching the fee structure to potential clients, as it may not be discussed in the middle market. (23:56)
  • David discusses the importance of transparency in compensation and how to use the risk management action plan to show clients what they are paying for. (25:07)

Tweetable Quotes:

  • “It’s really, really important that you understand how these deals get structured. And the best way to do it, in my opinion, is to always have some skin in the game for yourself because that’s more attractive to the buyer.” – David Carothers
  • “When we do a proposal to somebody, we identify exactly what our compensation is going to be. It’s completely transparent, especially in the fee basis because we’re billing them for it. We’re telling them, here’s what we do, here’s what we’re charging you. They don’t have a problem paying that bill. That’s why the Risk Management Action Plan is so important because I’m sending that thing with an invoice every single time. I want them to see we’ve earned the money that we’re billing them for.” – David Carothers

Resources Mentioned:

The Power Producers Podcast where we are refining and redefining the sales game.

Kyle Houck

Insurance

Faith, Empathy, and Opportunity: How Lloyd Brown is Redefining Diversity and Purpose in the Commercial Insurance Industry

In every season of The Protege, one thing becomes crystal clear—success in the commercial insurance industry isn’t about where you start, it’s about who you become.
In this episode of the Power Producers Podcast, I sat down with Lloyd Brown, a middle market producer from Orlando, Florida, whose story is equal parts faith, resilience, and purpose.

Read More »
Sales

Why Being Liked Is Killing Your Sales: Mastering the Psychology of Closing

Salespeople are often taught to be charismatic, friendly, and well-liked. But as David Carothers and high-ticket sales expert Austin Medlin explore in their recent conversation, that mindset could be the very thing sabotaging your close rate. Austin, the founder of CloseSales.com, brings a fresh perspective from outside the insurance industry that perfectly aligns with what commercial producers face daily: buyers who need leadership, not another friend.

Read More »
Insurance

Service Over Sales: How Hospitality Principles Create Better Insurance Producers

That idea sits at the heart of a powerful conversation I had with Joe Hollier, better known as Mr. Hotel, on the Power Producers Podcast. Joe’s story is one that every producer can learn from. He started his career in hospitality, spent two decades working in restaurants and hotels, and eventually found his way into insurance. What he brought with him from hospitality turned out to be his biggest competitive advantage — the ability to understand people.

Read More »
Sales

From Fax Blasts to Trusted Advisors: Timeless Sales Strategies That Still Win Today

In the fast-paced world of commercial insurance, new trends and technologies seem to emerge daily. But some strategies stand the test of time—particularly when they’re rooted in deep client empathy, practical experience, and a commitment to legacy. In this post, we reflect on insights shared by Kevin Ring from the Institute of WorkComp Professionals during a recent Power Producers Podcast. Kevin joined David Carothers to honor the contributions of industry legend Preston Diamond and explore how his wisdom still applies in today’s sales landscape.

Read More »
Insurance

Authenticity, Hustle, and Humor: Redefining Success for the Modern Insurance Producer

The insurance industry isn’t known for flash or flair. Most people picture gray suits, paperwork, and words like “renewal,” “loss runs,” or “premium audit.” But a new generation of producers is proving that this business doesn’t have to be boring. They’re showing that authenticity, energy, and creativity can make insurance not only engaging but a platform for meaningful connection and career fulfillment.

Read More »

Test Message

Killing Commercial Login