Agent Commission Split

[jadigirl]

I am a new independent agent in the panhandle of TX. I was kinda thrown into it because my boss bought into the agency and he bought the building. I am a bookkeeper, when we moved into the office, I had to get my license so I could help the other Partner with her clients and help to pull in new clients. When they had their meeting a couple weeks ago, she told my boss and the other partner that it was customary for the independent agent to receive 35% of new buisness and 20% on renewals. Keep inind, I have not received a dime from the agency. I have wrote quite a few policies but my motivation lacks due to the % split she said was customary. I thought a 60/40 was fairly standard. Can you advise me please?

Jimmie Dee Bennett
(806) 679-8087

 

[blue_wynd]

Need more info. Are they giving you a base salary? Leads? Office Space and supplies? Who pays for the e & o? Benefits?

 

[jadigirl]

I do the books for 3 other farming operations, my salary come from one of the companies, in which i also receive my benefits from. My boss owns the 3 companies, and i have worked for him for the past 15 years. The 3 companies and the insurance company split the overhead on the utilities and operating expenses of the office, except for advertising. The agency pays me nothing at the present time. The e& o is paid by the agency.

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None of my equipment, computers, printer, tablet, desk or otherwise is owned by the agency.

 

[blue_wynd]

So you provide your own equipment? Your situation is unique. Your boss is making you help out on his new venture, I assume you are OK with it since you don't sound unhappy about the situation; only the commission. Your salary given to you is for the bookkeeping. If you like doing that and don't plan on becoming an insurance agent then you can look at this as a side gig. I think how you get pay for this gig depends on involved you are with it. Do you need to go out there and get new clients? Are the people you had written coming to you for customer service? How many hours are you putting into this gig? Do you enjoy doing this? If this isn't a long term thing and you expect to stick to bookkeeping soon; I would personally ask higher first year commission and no renewals. Another thing you can do is ask your boss for a raise since you are now doing both bookkeeping and insurance. With a raise, the 35/20 would be fair.

 

[jadigirl]

I do enjoy the insurance business very much. I am always interested in learning newe things. My boss and one of the other partners is willing to pay me whatever I ask for. The know as driven as I am, within a year I will have a good book of business on my own. I think I just need to sit down with all of them and discuss what I have learned. I want the new agency to do well, but I do not want to be taken advantage of either. Thanks for the input.