Need Help with Insurance Agent Commission

[RonShoe434]

Hi all & thanks for taking the time to help me out.

So I was on a special deal first year just to get me going since changing careers into P&C world... My first year I averaged 70,000 in new business.

Year 2 (which is just about to finish up) I hired an assistant AND hired a sales guy to join my team specifically. I plan to incur the costs of those two people myself. So far the last 2 month's we've been closing 140k new business every month (i'm doing about 100-110k/month and new sales guy is doing 30-40k/month).

Here's where i'm at: 65% new business & 25% renewals of the agency's commission. I guess I want to know from some of those out there that have more experience than I do.. Is this a fair deal and my boss is going to try and bring me back down to what all of the other insurance agents make (55% new business & 15% renewals) - now understand... those agents that are on the 55%/15% split, they only produce between 30-70k premiums per month, i'm averaging 120k-140k+++ (my goal next year is to do 200k/month in new business.

I feel like based on my production, I should be at a higher split OR even stay at my current 65%/25% split.

I guess what are you seeing out there for commission splits for P&C agents that are working within an insurance agency? ANY help would be really appreciated.

Thanks in advance

 

[Markthebroker]

What your commission split is has a lot to do with how much you're producing, but mostly what the agency is doing to help you. Like advertising leads, excetera.

I have lots of office support, but zero leads and advertising, which is fine because I know how to get referrals. My split it 50/50 on new and renewals. I am commercial only however.

 

[Mike007]

It really depends on what they do for you. Do they give in hourly wage? Salary? Office space? Phone? Computer? Internet? Leads? Marketing? Office support? Admin support? Healthcare? 401K? Are you an employee (W-2)? Are you 1099? What do they do for you?

When I ran my own Independent P&C agency for personal line, I don't offer my agents anything except original training and ongoing training if they wish but beyond that, I don't offer much else. I did provide a free E&O under my agency. They were all 1099 with zero benefits but I gave them a very fair contract: 80% New Business, 80% Renewal. They were 100% responsible for all their clients. I pretty much ran my agency like a mini-cluster.