Comission Question

[IndependentScott]

I am an independent agent in SD that works under an Agency Owner. I am commission based only with no base or salary. 1st year 75%, 2nd year 50% and 3rd year 30%. I was originally under the impression that the 30% would stay in affect the duration the polices were in force. Found out that that is not the case. It is 0% after 3 years. I do not pay rent or phone, internet services. I handle 90% of my clients through my cell phone and use my own vehicle with ro reimbursement. Just curious what other independent agents are getting for their commission program. Thanks

 

[Chazm]

I get 100% year 1-6 for some policies. 100% year one and 50% year 2 and on for others.

 

[WinoBlues]

Depends on the the product.

Also, who's clients are they?

Are you vested or if you leave tomorrow does your check stop.

 

[goillini52]

I get 100% year 1-6 for some policies. 100% year one and 50% year 2 and on for others.

Are you sure that he's talking about Med Supps/MAPD?

 

[WinoBlues]

Are you sure that he's talking about Med Supps/MAPD?

If 10yr SIterm that is awesome!

Also, percent of what?

 

[BADTROUT]

I am an independent agent in SD that works under an Agency Owner. I am commission based only with no base or salary. 1st year 75%, 2nd year 50% and 3rd year 30%. I was originally under the impression that the 30% would stay in affect the duration the polices were in force. Found out that that is not the case. It is 0% after 3 years. I do not pay rent or phone, internet services. I handle 90% of my clients through my cell phone and use my own vehicle with ro reimbursement. Just curious what other independent agents are getting for their commission program. Thanks

If you are talking life and health primarily listen to these other guys who have life/health only shops... We are general lines meaning Life, Health Property and Casualty...

Every indy agent pays a little different and much is dependent on what ownership (or not) stake you have in the client base you develop.

I pay the same on P&C and Life/Health...
75% New/Renewal Year <1
70% New/Renewal Year <2
65% New/Renewal Year <3
60% New/Renewal Year <4
55% New/Renewal Year <5
50% New/Renewal Year 5+ until they quit, die, retire, or decide to stop producing at a level greater than the retention deficit. MEaning, the book best be advancing (in this house PIF means policies and not premium).

We do also provide back-office support to and for our producers.

 

[WinoBlues]

If you are talking life and health primarily listen to these other guys who have life/health only shops... We are general lines meaning Life, Health Property and Casualty...

Every indy agent pays a little different and much is dependent on what ownership (or not) stake you have in the client base you develop.

I pay the same on P&C and Life/Health...
75% New/Renewal Year <1
70% New/Renewal Year <2
65% New/Renewal Year <3
60% New/Renewal Year <4
55% New/Renewal Year <5
50% New/Renewal Year 5+ until they quit, die, retire, or decide to stop producing at a level greater than the retention deficit. MEaning, the book best be advancing (in this house PIF means policies and not premium).

We do also provide back-office support to and for our producers.

I believe I know the answer however, they may not. 75% of the what? Example: $100mo 10 yr term or $100mo substandard auto.

 

[UKTX]

More likely 75% of the commission paid on home/auto......

I doubt it's for life/health. But if it is that sucks....

 

[BADTROUT]

Every line of business for every dollar that comes in the employee gets 75% then 70 etc etc

@UKTX what difference does the line of business make? Regardless of what's sold the producer gets their cut the agency gets their cut.

 

[Chazm]

Are you sure that he's talking about Med Supps/MAPD?

I’m pretty sure no. But he didn’t specify so I didn’t either.