Need Input - Commercial Agent for Commission Only

[landmarkins]

Hello,

I have an independent agency and I was thinking about hiring an agent to go out and seek commercial policies. I will be paying on a commission basis only. Is there anyone out there doing this and what is the best way to go about it?

I would appreciate any suggestions.

 

[JCK818]

Offer a split in the 70% area you will get a great deal of response.

 

[1manshow]

70% "New" you mean?... Haven't heard of many paying over 40% on renewals

 

[VaDwayne]

70% "New" you mean?... Haven't heard of many paying over 40% on renewals

I currently work with an agency as an independent and I get a nice guaranteed salary and 80/20 split of 15% on all new business and renewals when I reach that salary amount per year. Oh, I only sell commercial for them. I should hit that amount in June or July. There is absolutely no way I would take 40% on renewals.

Speaking for myself, I will work twice as hard to get paid well than I will for someone that I think is taking advantage of me. The thing about getting paid well for what you do is that it makes the agent feel important to the agency and he/she will work like they appreciate you. Heck, my agency even allows me to sell my own med. supps and I get the renewals from them as well. When I walk into that office, I feel like a well-paid professional agent and I know they have faith in me to work hard for them.

 

[JCK818]

70% on new business, 25-40% on renewals is fair

 

[VaDwayne]

70% on new business, 25-40% on renewals is fair

WOW!!! I guess I should really feel fortunate. Thank you for the post.

 

[landmarkins]

Thank you...
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70% to the agent and 30% for the agency? for some reason it seems like a lot. I guess in my head it doesn't make sense the fact that an agent would make more commission than the agency when we're the ones that maintain everything ie. E&O, office supplies, phone, laptop, etc...

Please kindly explain it to me so it would make sense.

 

[1manshow]

Consider it an investment in future renewals and incentive for an agent to write new business year after year. 70%to agent in year one, normally 30% to agent on renewal. Keeping 70% for the house on renewing business will normally cover your expenses and return you initial investment in the producer if he/she writes a fair amount of biz.

VaDwayne....lucky guy..probably writing for a small agency

 

[VaDwayne]

Consider it an investment in future renewals and incentive for an agent to write new business year after year. 70%to agent in year one, normally 30% to agent on renewal. Keeping 70% for the house on renewing business will normally cover your expenses and return you initial investment in the producer if he/she writes a fair amount of biz.

VaDwayne....lucky guy..probably writing for a small agency

I actually work with a large agency. We have 5 people in the commercial dept., 5 in person lines, 2 investment counselors, 2 in health and life, as well as support staff. The agency just celebrated it's 50th anniversary and constructed a brand new office building. I think that it also helps that I am a Mennonite in a huge Mennonite community.

I work with large accounts that we have lost to other agencies and try to woo them back, as well as getting new business on the books. They also expect me to attend all of the local association meetings such as the Home Builders associations, Kiwanis, Rotary, Chamber of Commerce, etc.

My split is actually 75/25, I checked today.

 

[landmarkins]

I actually work with a large agency. We have 5 people in the commercial dept., 5 in person lines, 2 investment counselors, 2 in health and life, as well as support staff. The agency just celebrated it's 50th anniversary and constructed a brand new office building. I think that it also helps that I am a Mennonite in a huge Mennonite community.

I work with large accounts that we have lost to other agencies and try to woo them back, as well as getting new business on the books. They also expect me to attend all of the local association meetings such as the Home Builders associations, Kiwanis, Rotary, Chamber of Commerce, etc.

My split is actually 75/25, I checked today.

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Thank you for the reply, it really helped. I will for sure consider hiring someone soon.
If you don't mind me asking you a couple of questions. How do they pay your commissions, in one lump sum or do they brake it down monthly? and if the policy cancels, do you have to return some of your earned commissions?
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Thank you for the reply, it really helped. I will for sure consider hiring someone soon.
If you don't mind me asking you a couple of questions. How do they pay your commissions, in one lump sum or do they brake it down monthly? and if the policy cancels, do you have to return some of your earned commissions?