GirlInPink
Expert
- 22
Hi everyone! Testing soon & starting to interview w/ P&C agencies. When it comes to being Independent what is the average commission structure for “new” agents in the field? I’m in Michigan... TFS!
2017/2018 Commission
- Thread starter GirlInPink
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myfakename
Super Genius
- 163
Commission?
I thought we were doing this for fun!
I thought we were doing this for fun!
- 5,290
Well hang on just one minute here! You are getting paid to do this?!
I need to talk to my agency principal.
I need to talk to my agency principal.
- Thread starter
- #4
GirlInPink
Expert
- 22
Sorry everybody!!! I guess that is a question that can vary due to company, experience & what you negotiate. I’m interested in going “Independent” BUT I am interviewing w/ a few captive companies to weigh my options. I really want RENEWALS! 
- 977
If you want renewals, you want Indy. BUT you gotta have experience if you plan on going on your own. If not, find an Indy agency to work for.
- Thread starter
- #6
GirlInPink
Expert
- 22
Thanks Indienoise! I had my 1st interview yesterday w/ an independent agency. We spoke about personal & commercial lines (which really interest me) once I pass my exam we will move forward to interview 2. I also have an interview soon w/ a captive agency. I want to hear what they are offering their producers when it comes to training, salary, etc. I’m assuming NO residuals.
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- 5,290
indienoise is exactly right. You will learn more going indi right off the bat, but it's of course more to learn, so it's harder. Captive will be easier and may pay a little more in the beginning, but don't expect renewals. Ultimately indi is the way to go. A few people with disagree with me, but overwhelmingly most will agree.
Usually the better deal you get in the beginning, the less favorable it is in the long run. The better you get paid on new bizz, the less you usually get on renewals. If you are new and trying this out, you may want to focus more on new bizz pay, because you may find, like many people, this isn't for you and renewal payout will be irrelevant at that point. I went indi about 5 or 6 years ago, and it will probably be 2 or 3 years 'till I can pay my bills. After that I will be cruising securely, and my pay will just keep going up. I started in personal, and now focus on commercial only. A little bit of life and legal.
For commercial the commission pay out in California (I suspect the same in all states) is comm auto and property 15% and sometimes 20%. Surplus lines is 10%, sometimes 12% but you can add broker fees. Work comp is 10%-14%. Then you are going to split that with the agency. The split is going to be 30% to 70% new, 30% to 50% renewal. Even more important than the split, is the servicing. The better your accounts are serviced by the staff, the better chance they have of renewal, the more referrals you will get, and the more time and energy you can focus on new business. I can't stress how important good servicing is for a producer.
Best of luck to you.
Usually the better deal you get in the beginning, the less favorable it is in the long run. The better you get paid on new bizz, the less you usually get on renewals. If you are new and trying this out, you may want to focus more on new bizz pay, because you may find, like many people, this isn't for you and renewal payout will be irrelevant at that point. I went indi about 5 or 6 years ago, and it will probably be 2 or 3 years 'till I can pay my bills. After that I will be cruising securely, and my pay will just keep going up. I started in personal, and now focus on commercial only. A little bit of life and legal.
For commercial the commission pay out in California (I suspect the same in all states) is comm auto and property 15% and sometimes 20%. Surplus lines is 10%, sometimes 12% but you can add broker fees. Work comp is 10%-14%. Then you are going to split that with the agency. The split is going to be 30% to 70% new, 30% to 50% renewal. Even more important than the split, is the servicing. The better your accounts are serviced by the staff, the better chance they have of renewal, the more referrals you will get, and the more time and energy you can focus on new business. I can't stress how important good servicing is for a producer.
Best of luck to you.
- Thread starter
- #8
GirlInPink
Expert
- 22
@Markthebroker THANKS a lot for your input! My 1st interview w/ the the vice pres. of the “Independent agency” didn’t give me any numbers. Once I get licensed, interview w/ the owner I would get numbers if they make me an offer. He did say I would get “salary & commissions” for 2 yrs. while I’m building my book of business then it’s straight commission. He said I should be able to live from my renewals by year 3 and keep building from personal & commercial.
I have my Life & Health License and I think if you hustle hard that should be true. WHY is it taking you ALMOST 8 YEARS to get situated???
I heard P&C pays less out of all the products.
I have my Life & Health License and I think if you hustle hard that should be true. WHY is it taking you ALMOST 8 YEARS to get situated???
I heard P&C pays less out of all the products.- 977
When you own the agency, it's like any other business. You have to invest in it, especially when it's growing. I am approaching a major volume milestone for newer agencies, but am profiting less now than I was 8 months ago because of hiring, marketing, etc.@Markthebroker THANKS a lot for your input! My 1st interview w/ the the vice pres. of the “Independent agency” didn’t give me any numbers. Once I get licensed, interview w/ the owner I would get numbers if they make me an offer. He did say I would get “salary & commissions” for 2 yrs. while I’m building my book of business then it’s straight commission. He said I should be able to live from my renewals by year 3 and keep building from personal & commercial.
I have my Life & Health License and I think if you hustle hard that should be true. WHY is it taking you ALMOST 8 YEARS to get situated???
- 5,290
Every successful independent P&C commercial agent in my area took 5-10 years to ramp up. It's typical. Then it's gravy after that. I'm right on schedule. It may be worth mentioning that this is one of the most expensive places to live in the U.S., so that may be a factor.
You never mentioned - what sales experience do you have?
You never mentioned - what sales experience do you have?
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