heres the deal. ive just started as an agent for an independant agency in town who has contracts with many carriers for p&c and life and health. currently it is a good deal because they take care of all overhead and i have no experience. all i do is prospect and close. my split is straight 50% on commission and renewals.
right now it works because i am barely building a book of business and couldnt afford the overhead of owning my own agency.
but at what point is it time to leave? how big of a book would i have to have to self sustain? i guess what im wondering is
1 - how good is this deal im getting? the better i get and the more money i make, obviously the less i need this person ... theyre getting 50% off my back
2 - for those here who own their own agency, how much of your gross commission/renewal goes to overhead? im trying to find that magic number. there has to be a number after which its all profit (for example ... it costs 100k to run your office, so after 100k, its all profit).
the 50/50 split works right now because she does everyting (employs staff, eo insurance, services policies), but im just wondering how much that is really worth. if i make 50k a year in renewals, i COULD be making 100k if i was on my own (or could i? would my overhead eat it up?)
basically im wondering whats more valueable .... giving away 50% not to have a headache, or being independant and keeping all of it (including the headache of running everything).
right now it works because i am barely building a book of business and couldnt afford the overhead of owning my own agency.
but at what point is it time to leave? how big of a book would i have to have to self sustain? i guess what im wondering is
1 - how good is this deal im getting? the better i get and the more money i make, obviously the less i need this person ... theyre getting 50% off my back
2 - for those here who own their own agency, how much of your gross commission/renewal goes to overhead? im trying to find that magic number. there has to be a number after which its all profit (for example ... it costs 100k to run your office, so after 100k, its all profit).
the 50/50 split works right now because she does everyting (employs staff, eo insurance, services policies), but im just wondering how much that is really worth. if i make 50k a year in renewals, i COULD be making 100k if i was on my own (or could i? would my overhead eat it up?)
basically im wondering whats more valueable .... giving away 50% not to have a headache, or being independant and keeping all of it (including the headache of running everything).
