Compensation Question

Apr 11, 2016

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  1. JoeinsurancePhilly
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    JoeinsurancePhilly New Member

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    I am a subproducer in Philadelphia. I have been with my agent for 8 years. He is an exclusive agent. It has been just him and I. I get a base of 20k, no residuals, 10% commission on new business (6month auto,1year home). I operate out of South Philly and have been the main producer for the agency. I have written about 45% of all the business that is currently in the agency, with temporary staff writing another 25 and then the agent himself, closing the rest. Is this compensation indicative of what I should anticipate (around 50k last year) and then hope that other opportunities within the agency arise, or should I be pursuing other paths to success?
     
  2. FL P&C Broker
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    FL P&C Broker Guru

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    Where are the leads coming from?
     
  3. JoeinsurancePhilly
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    JoeinsurancePhilly New Member

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    Direct mail and personal referrals. I'd say 10/90 if self marketing.
     
  4. WadeQ
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    WadeQ Expert

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    In my opinion you should look around. Doesn't hurt to check your options. If YOU are the one bringing in the business and they're YOUR personal referrals, you deserve more.
     
    WadeQ, Apr 12, 2016
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  5. DavidMartinez
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    DavidMartinez New Member

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    I think that it would definitely be beneficial to look around, if you are writing more business then your agent on your own, not counting the referrals that come in from his clients then it sounds like you need to find an agent who takes sales more seriously and at least matches what you bring in. Never hurts to look around either anyways!

    Question though, say that your monthly goal is 25 property and casualty units and you hit lets say 40 units that month, does your commission grow?
    From my experience in insurance as a producer that's the compensation I've seen more commonly which I think is fantastic incentive. So your commission on new business is 10% but lets say with a monthly goal of 25 units P&C a month and you get to 30 your commission should raise to lets say 15% and then if you made it to 40 it'd be 20% and that would be the cap.

    Also why aren't you making any residual? Getting the residual compensation in my opinion is where you make all the money. You've been with your current agent for 8 years... That could potentially be a huge book of business and residual check that you get every month from those after 8 years would be huge!


    Now I'm not trying to create offense towards your boss at all but if I were you I would definitely look around and weigh your options. You've been in the game for 8 years.. You deserve to be making more money then that as a producer even if not full time..
     
  6. FL P&C Broker
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    FL P&C Broker Guru

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    Put everything else aside for a minute. How much revenue are bringing in the door every year?
     
  7. glgamerica
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    glgamerica Super Genius

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    Advice above and beyond the commission splits....

    If you it's just the two of you and you are bringing in enough business that supports you, I'd suggest biting the bullet and going out on your own now.

    No sense building a large book of business inside someone else's agency if you don't own it.

    If you need the other persons assistance, then have a clear path for what happens if they want out due to retirement or other exit.
     
  8. indienoise
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    indienoise Guru

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    I know a base salary is worth domething, and it probably worked in your favor in the beginning, but now it's to the principal agent's favor. It's a trade off, BUT if I were you I would at the very least ask for some renewal commission, especially if, as you say, you are the biggest producer in the office. Otherwise I think its time to start looking at going on your own, if you have the capital. And if you are truly generating that business, not relying on the captive carrier marketing.
     
  9. ICACharleston
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    ICACharleston Expert

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    I hope you are getting kissed too.
     
  10. JoeinsurancePhilly
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    JoeinsurancePhilly New Member

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    Right around 200k
     
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