Comission Question

[IndependentScott]

Sorry i did not specify but it is for all lines. I sell P&C and dable in life and health. They are my clients. I took the time to go get them. Anything that walks through the door is not mine, I have to bring them to the agency. Appreciate all the input.

 

[BADTROUT]

Sorry i did not specify but it is for all lines. I sell P&C and dable in life and health. They are my clients. I took the time to go get them. Anything that walks through the door is not mine, I have to bring them to the agency. Appreciate all the input.

Ok couple questions for you...

1. How much experience do you have?
2. Do they provide back office customer support or do the clients call you directly?

 

[UKTX]

Sounds like you have already decided its a bad deal for you. Try shopping your commission rate around to see if you can get something better.

Or try going direct/using a cluster. Its not always as easy as it sounds (production requirements, cluster fees etc)

 

[IndependentScott]

I have 3 years of experience. Last month my policies saw there 3rd year renewals. My clients have my direct phone number. They usually contact me 80% of the time. If not the CSR will leave a message on my desk. Even on vacation I will run quotes on my laptop becuase they just forward the information to me.

 

[BADTROUT]

I have 3 years of experience. Last month my policies saw there 3rd year renewals. My clients have my direct phone number. They usually contact me 80% of the time. If not the CSR will leave a message on my desk. Even on vacation I will run quotes on my laptop becuase they just forward the information to me.

Yeah, not good... are you primarily PL or CL?

 

[IndependentScott]

PL. Mainly the first year and a half. Been getting more involved on CL since then.

 

[Mike007]

Time to move on and get your own contracts on the P&C. If you can't get your own contracts, go through an insurance cluster. Nothing worst than watching your commissions decrease over the years. Most people that I ever worked with, I have never had decreasing commissions. All my commissions were set for example: 80% new business. 80% renewal. And its forever until the client drops off. Talk about RIP OFF.

 

[BADTROUT]

Time to move on and get your own contracts on the P&C. If you can't get your own contracts, go through an insurance cluster. Nothing worst than watching your commissions decrease over the years. Most people that I ever worked with, I have never had decreasing commissions. All my commissions were set for example: 80% new business. 80% renewal. And its forever until the client drops off. Talk about RIP OFF.

Depends on the service... if he is doing the service this is way lame. If all of the service work is done I'll say I've seen worse, but not much worse.

 

[WinoBlues]

Depends on the service... if he is doing the service this is way lame. If all of the service work is done I'll say I've seen worse, but not much worse.

Do you believe they are his clients?

Many moons ago when I left a P&C shop after a few years all the clients were theirs. They AOR'd the life clients to me But the P&C book stayed.

 

[BADTROUT]

@WinoBlues I would be absolutely dumbfounded if they were not subject to some non solicit agreement... That said, and this is something I explain to my network agencies... it seems all the time when they ask WHO owns the business.

The business, is written business which is placed with a carrier via a sales code attributed to the agency. If one leaves... the "book" stays in that code unless its moved by either rewriting it, or doing a BOR/AOR with the client/carrier. He would have to have another relationship with the carrier, or through another agency to even have a discussion about owning it. Second, he would have to actively pursue it, and even the best agents convert about 75% max. All of this is assuming he doesnt have that non solicit.

That makes his deal bad... for exclusivity like he likely has, he should be 75% at very least if he is servicing if they service no less than 40 or 50 but 30% is a joke in any scenario. If he, as earlier suggested were to open his own shop, he gets an instant raise to 80 or 90% commission through an aggregator or agency network or if he can find enough contracts on his own 100%. Better long term investment for him.