MN Couri IA Am I Getting a Fair Deal? Need Quick Advice

[blue_wynd]

I would suggest you look for more options. If not by yourself, definitely check out other agencies in your area. I personally wouldn't take your current deal.

 

[indienoise]

Even if it isn't, it can still cause problems.

I wouldn't sign for that reason alone. A non-solicit, fine, but definitely not a non-compete. If you stop working with this agent, you either have to move or find a new line of business.

Agree. And I also agree the split, ESPECIALLY on renewals, sounds low. Run.

 

[Chrisl]

I agree that you have to be comfortable with the commission split.

I'm a principal, so I'm on the other side of the fence. I'm sure you can research on this site as to what seems to be a reasonable split for both parties based on what is common.

I've heard of it all in regard to splits; some that should be relegated to the "urban legend" category or are flat out untenable, but yet, such skewed splits are thrown into the mix as to what agents perceive as reasonable. An agent may hear or read about a 90/80 split and think in their search, if they're getting any less, they're getting the short end of the stick.... Whereas factoring expenses and overhead let alone profit, such a split is absolutely unprofitable and untenable.

One of my agents told me he recently heard of an agency offering an hourly wage, plus 80/80 commission. Whether it's true, I don't know. I do know that an agency would lose money in a big way on such an arrangement. Not only is it unsustainable, it's unprofitable right out of the gate.

Do you like where you are? I mean, do you like the agency you're working with now and the only issue you're struggling with is compensation?

Again, coming from the perspective of a principal, you may find this funny, but I often find myself thinking something like: "Oh, Oh to have the luxury of being able to focus solely on selling. And in many ways, let me assure you, it is a luxury.

People who are outstanding at sales, who have the sales drive "off the charts" are often very bad at managing others and managing the minutiae required of a principal. Throw into the mix having that person's sales time to focus on what they're good at dramatically cut down and...the grass is not always greener on the other side.

Just a different perspective.

ChrisL

 

[rolox1]

I used to work for an agent who paid me an hourly wage with a whopping $10 per policy that I wrote. Zero on renewals.