Indie Newb with Commission % Questions

[OCinsurance]

I generally do 65/35, or 70/30 after $100,000, with the agents in the office. If it's an independent agent, they have to have their own E&O insurance. Yet, I have seen many places do 50/50 or sometimes less.

 

[SalemInsuranceGuy]

I have been lurking on this board for a while and am considering hiring on as a new agent under an Independent Broker. He has a nice lineup of companys/products. I'll start doing P&C at first and can go into other products later.

My only concern is the commission split. He wants 50% of everything I write (I get 50% of all renewals also). He will cover all office expenses and is negotiable on out of office expenses also (LeTip club, advertising, etc.) He will provide support and mentorship. I will not own my book, but he says hes negotiable on this in the future (need to get more details on this).

It is a straight commission job (no salary/guarantee) and thats fine with me. Most of his p/c products pay 15% so my commish would be 7.5%. Is this enough considering no salary, guarantee, road expenses?

I like this broker and think we are a good fit (another interview later today).

I will be pretty much on the road full time and will pay my own car/gas/road expenses. I'll drop in his local office 1 or 2 times a week to check in, get training, meets ins reps, drop paperwork, etc. I like this arrangement and think it will work great for me.

I receive NO leads from the broker. I'm confident my marketing skills/hard work/sales closer background can make this work without leads.

I will definately try to get a better percentage. What do you PROS suggest I get/ask for?

Anything else I should ask for/get?

I appreciate any ideas/help!

I worked for a large P&C agency before but doing Life & Health. I was paid 50/50 on new business and 30/70 (only 30% to me) on renewals. Although I did also get a 30k a year salary, not a draw or anything against commissions, it was in addition to my commissions. Plus $250 a month car allowance, Cell phone allowance, 100% employer paid health, life, dental, short and long term disability and a matching 401k plan. Plus a nice end of the year Christmas bonus. I had my own office, secretary, parking etc, downtown. They had a huge client base and I'd get a lot of lay downs calling in to buy health or life insurance. Hell sometimes I look back and wonder why I ever left there.

 

[hdlabs]

I was offered 25 k a year for 2 years with a 40% on new business and renewals. No benefits.
Also offered 25k salary with all health ins paid. 401k matching--$400 for gas--Cell phone provided.

I just wonder how much premium in first year could be written by new agent---learning all the different companies to write for, etc.? Neither one of the offers does a great deal of marketing --that I'm aware of or have ever seen.