From Runningclock 2205

Three independent sources one manager from the field and two sources were informed Friday of Tom Wilson’s strategic move to eliminate the bottom 30% of the agency force by year end. The sales field will have additional follow-up meetings within weeks to implement these procedures. They are terminating 30% of agents by year end.

Allstate is going to finance at 5% , 7% and 9% the terminated books of business. They will allow agents to merge the terminated books of business into their books. If they meet the goals of production  from the terminated agents they will have loan forgiveness and interest forgiveness of the acquisition cost of the terminated agents. There will be such a glut of books of business on the market that Allstate feels this will be easier for the new agents to purchase as the prices will dramatically fall.

Their goal is to increase or show an increase of APA (Apps Per Agent) by terminating the agents in mass and merging them into larger agencies. This will at least initially not increase production for the company but will look like the APA has increased due to the mergers.

The goal is to convince Wall Street of the increase in Apps Per Agent even if we fall in Policies In Force or Agency count. This will be supplemented by Allstate financing the glut of agencies on the marker at a new all time low on agency values.

Again agents will  be rewarded by loan and or interest forgiveness if they grow the terminated agents books of business.

It has also been reported to me that it is Tom Wilson’s intent to further reduce agency bonuses.  This is an attempt to reduce net income to between 80k and 100k per year for large agencies.  There will also be intimidation used (my opinion) to convince agencies to “invest” 8k plus each month to sustain agency growth.