P&c Commissions and Renewals

[playball41]

So I am a new agent that has been searching for a year for a place to hang my hat started out by looking at captives then figured out by reading on here that Indy was the place to go so finally found a small Indy that has brought me on board I must say I am beating 90 percent of the brand name companies I am quoting . This guy is giving me 85% which I think is fair I have a network of about 600 plus people of which I will be bringing him over the next couple years but he states that I will get all my renewals (85%) until I quit. My question is shouldn't I tell him I expect my renewals for life or put another way tha I should be vested from day one? What is the standard?

 

[indienoise]

So I am a new agent that has been searching for a year for a place to hang my hat started out by looking at captives then figured out by reading on here that Indy was the place to go so finally found a small Indy that has brought me on board I must say I am beating 90 percent of the brand name companies I am quoting . This guy is giving me 85% which I think is fair I have a network of about 600 plus people of which I will be bringing him over the next couple years but he states that I will get all my renewals (85%) until I quit. My question is shouldn't I tell him I expect my renewals for life or put another way tha I should be vested from day one? What is the standard?

Standard arrangement is when you quit, so does your compensation. If you're good, you might get some vesting but it is certainly not for life.
Be thankful. 85% is certainly not standard. You're getting a great deal. I'm not sure how the agency is making any money on that unless you are handling ALL service and get no support at all, and your business is profitable enough to make some $$$ on profit sharing. Some clusters don't even give that good of a split.

 

[playball41]

Yes I knew right away the 85% was more than fair I am 55 years old want to bust my butt for 5 years to build up the renewals so I can have approx 70'000 a year in renewals coming in at age 60 si I guess I will plan on staying semi active with it after age 60

 

[Mike Siegal]

So I am a new agent that has been searching for a year for a place to hang my hat started out by looking at captives then figured out by reading on here that Indy was the place to go so finally found a small Indy that has brought me on board I must say I am beating 90 percent of the brand name companies I am quoting . This guy is giving me 85% which I think is fair I have a network of about 600 plus people of which I will be bringing him over the next couple years but he states that I will get all my renewals (85%) until I quit. My question is shouldn't I tell him I expect my renewals for life or put another way tha I should be vested from day one? What is the standard?

May i ask "why did it take you 1 year to find an agency?"

Thanks!

 

[todd02]

So I am a new agent that has been searching for a year for a place to hang my hat started out by looking at captives then figured out by reading on here that Indy was the place to go so finally found a small Indy that has brought me on board I must say I am beating 90 percent of the brand name companies I am quoting . This guy is giving me 85% which I think is fair I have a network of about 600 plus people of which I will be bringing him over the next couple years but he states that I will get all my renewals (85%) until I quit. My question is shouldn't I tell him I expect my renewals for life or put another way tha I should be vested from day one? What is the standard?

No producer every gets renewals for life unless you're the Agency owner. Especially making 85%!? How the heck is that Agent even making money unless as someone else stated you're doing everything and he is just letting you use his carriers which is stupid. He's taking a lot of risk for 15% reward of p&c commission. One of your clients has a house fire and he loses his bonus. 15% isn't going to compensate for that.

The average renewal commission for a producer with no salary is 50%. 100/50. Or with decent salary 40/30.

 

[LostDollar]

How the heck is that Agent even making money unless as someone else stated you're doing everything and he is just letting you use his carriers which is stupid..

This guy is giving me 85% which I think is fair I have a network of about 600 plus people of which I will be bringing him over the next couple years but he states that I will get all my renewals (85%) until I quit.


Looking for a succession plan? or a victim for debt? or looking for someone to force out (is your state an employment at will state)? what is your contractual legal status-are you in essence captive at an independent agency? non-competes? Caution with your network before you get locked in may be in order if this situation is as overly advantageous to you at the moment as the posts suggest.

 

[Arnage150]

Are you sure you are getting 85% on renewals?
85% on new and renewal is unheard of.

Make sure you get a contract.

 

[playball41]

I am getting 85% on new and renewal.

 

[bps]

Not sure why it would make sense for an agency owner to pay you for life, while they get 15% and have to service the business. You've got a great deal at 85%.

 

[marindependent]

Make sure its in writing...