Commission Split - No Bloviating

[Mike Siegal]

SUGGESTION: add to the list "Do you own your BOB?"
So the list should say

No Base
50/50
40/60
Florida
Yes/No?


I THINK this is an "IMPORTANT" factor to consider.

Absolutely....Who owns that Book of Biz???

 

[indienoise]

So you are giving 70% of renewal to the producer? Or are you saying the producer gets 30% of new and renewal?

Producer gets 30% new and renewal.

 

[Mike Siegal]

15600 base (min wage)
30/70 new and renewal PL
40/60 new and renewal CL
When it makes sense for the producer, go to no base and 50/50 split.
Some marketing allowance available to producer if they present a reasonable plan to take action on.
South Carolina

edit: Agency owns book, but I modeled my vesting addendum to look similar to (but more generous than) what was offered in my contract when I was a producer. They get the opportunity to continue receiving their current rate of commission, for as long as the business stays on the books, for up to 60 months, depending on time with agency and their premium volume. Extended earnings are completely forfeited the moment they solicit a client they brought in for my agency.

Hi indienoise,

What is PL and CL ?

 

[indienoise]

Hi indienoise,

What is PL and CL ?

personal lines/commercial lines

 

[TwoLabs]

Outside sales producer, part time

NB 50/50
R 25/75
No base
Agency owns the business

 

[Gulfman]

Can anyone explain why the agent gets such a low % trail?

75% in yr 2 going forward seems pretty low in my mind???

?

 

[indienoise]

Well, somebody is getting paid a salary to service accounts. Not to mention paying producer 75% commission is not sustainable year over year unless all I'm doing is providing them access to carriers, and the producer is 1099 and responsible for all aspects of their sales and service.