How Much Do You Pay Your Agents?

Emmaus

Expert
32
I recently opened a P&C agency with about 300k BOB. I'm thinking of bringing on some 1099 sales agents and was wondering what types of compensation structures some of you use. I want to avoid salary base since there won't be production requirements (1099).

I'll list some basic ideas below, what do you use? Details like commission splits etc. would be helpful. I don't mind giving 100% of new business commission, I really do want to pay what's fair, and don't want to pay more than I can afford (after all, they'll have access to my direct contracts). What do you think is the minimum fair pay structure and what's the maximum?

-Commission only, they get 100% of front commissions, no renewals?
-Commission + % of their sold business renewals? (how do you keep track?)
-Commission + keeping their book after x amt. of years?

Let's brainstorm!!!
 
Where are you located?
Are you providing leads or are they buying/bringing their own?
Can a producer live on commission only? Is there enough business around to do that, without starving an employee?

Me?
I'm a producer for an agency, I get paid a salary, and get commission for the first three years of the policy
 
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I recently opened a P&C agency with about 300k BOB. I'm thinking of bringing on some 1099 sales agents and was wondering what types of compensation structures some of you use. I want to avoid salary base since there won't be production requirements (1099).

I'll list some basic ideas below, what do you use? Details like commission splits etc. would be helpful. I don't mind giving 100% of new business commission, I really do want to pay what's fair, and don't want to pay more than I can afford (after all, they'll have access to my direct contracts). What do you think is the minimum fair pay structure and what's the maximum?

-Commission only, they get 100% of front commissions, no renewals?
-Commission + % of their sold business renewals? (how do you keep track?)
-Commission + keeping their book after x amt. of years?

Let's brainstorm!!!

I am a producer in wny. My deal is i get 30k salary plus .25 of commission on my own leads only. I was told that the book i bulid will be mine so long as he makes enough along the way. And even so these are my relationships and if they are string enough they will follow me anyways. He supplies zero leads. I pay for all my advertising and paid for half my license.
 
I recently opened a P&C agency with about 300k BOB. I'm thinking of bringing on some 1099 sales agents and was wondering what types of compensation structures some of you use. I want to avoid salary base since there won't be production requirements (1099). I'll list some basic ideas below, what do you use? Details like commission splits etc. would be helpful. I don't mind giving 100% of new business commission, I really do want to pay what's fair, and don't want to pay more than I can afford (after all, they'll have access to my direct contracts). What do you think is the minimum fair pay structure and what's the maximum? -Commission only, they get 100% of front commissions, no renewals? -Commission + % of their sold business renewals? (how do you keep track?) -Commission + keeping their book after x amt. of years? Let's brainstorm!!!

I give 85% first year.
50% renewals
 
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