Commission Splits with Agent Owner

[bull99]

I am a commercial and group health commission only producer in the Midwest and my agency has had two commission split changes in the past 12 months. I am interested to know how we now compare to what is also out there. My information is below. My book of business is 400K with an avg account size of 17K.

Commercial
New-40% of earned commission
Renewal 28% of earned commission

Health
New- 20% of earned commission
Renewal 15% of earned commission

Thanks ahead of time.

 

[Bertolinoins]

Why is there a difference between P&C and group health? Revenue is revenue in my opinion and benefits are easier to service.

As a commission only producer you compensation levels are low IMO. Many agencies will pay 40/30 with benefits and a lot of support. If you are in a 1099 situation, 50% + is the norm.

 

[WinoBlues]

>> Commission Splits with Agent Owner

Love that title!

If you work for someone else they do OWN you. They also own your wife and kids. Because they dictate whether they eat or not.

I once worked for a P&C shop in the East Bay. As revenues got tight he started rewriting the contracts on an etch-a-sketch. I told him I could not sign the last one and quit. 60 day before my wedding, Which I was paying for. Best thing I ever did.

FMOs, IMOs & GAs should shine their shoes to come see you, not the other way around. You are the producer With out you, they starve.

Kinda like the Government, They need us. Not us need them. We are the producers.

Dang! I got to stop drinking in the heat. 104` today.

 

[ABC]

On the health side I think you should be getting a higher comp. I feel that at least 40% of the comp is fair for a producing agent unless the agency is providing you with all of the leads.

If all of your clients are coming from the agency then that is a different deal all together. Then you just have to sell and not prospect.

I have one true producing health agent. I am giving him 60% of the comp but he has to produce his own leads. So not only does he have to sell but he has to be able to prospect.
I am giving him his own office, computer, and training.