Producer / Agency splits with large revenue books

[worktoski]

Curious what agents are seeing for agency / producer commission splits with revenue books $1M and up?

What is your percentage and what are you responsible for pre, during and post sale?

 

[Allen Trent]

Revenue of $1M from a producer?

 

[worktoski]

Yes wondering what producer / agency splits are from producers who have a $1M (REVENUE) or larger book of business.

 

[Allen Trent]

Yes wondering what producer / agency splits are from producers who have a $1M (REVENUE) or larger book of business.

Not sure many on this thread can answer as $1M revenue from a producer is pretty rare unless it is a huge agency & producer is a principal.

Any chance that you are confused as to what the definition of revenue is? Some mistakenly believe premium is revenue

 

[Tahoe Ray]

Not sure many on this thread can answer as $1M revenue from a producer is pretty rare unless it is a huge agency & producer is a principal.

Any chance that you are confused as to what the definition of revenue is? Some mistakenly believe premium is revenue

If a producer is doing 1m in rev and hasn't gone out on their own, please send them my way lol.

 

[worktoski]

I am well aware of the differences between revenue (commission) and premium. We are a smaller agency that works in the world of complex / high hazard risks. There are 3 total producers each with a book close to or over $1 M. Just trying to figure out how others are structuring commission splits for books of this size but seems like this is not as common as I might have believed.

 

[Allen Trent]

I am well aware of the differences between revenue (commission) and premium. We are a smaller agency that works in the world of complex / high hazard risks. There are 3 total producers each with a book close to or over $1 M. Just trying to figure out how others are structuring commission splits for books of this size but seems like this is not as common as I might have believed.

Are the producers all merely producers with no costs/overhead? or are all producers also principals in the ownership of the business?

 

[Tahoe Ray]

I am well aware of the differences between revenue (commission) and premium. We are a smaller agency that works in the world of complex / high hazard risks. There are 3 total producers each with a book close to or over $1 M. Just trying to figure out how others are structuring commission splits for books of this size but seems like this is not as common as I might have believed.

It's not common for 3 producers at a traditional agency to each have 8-10m dollar books.

None of you should be doing much in any phase (pre/post) outside of bringing in new clients and designing the proper coverage.

Everything else would by admin if I were in your shoes.

Not to mention, I wouldn't even be associated with an agency at that size (no splits). I would own the agency.

 

[worktoski]

Are the producers all merely producers with no costs/overhead? or are all producers also principals in the ownership of the business?

producers have a smaller base salary and benefits like a standard employee - health, 401k, phone, car, gas, technology, paid etc

Also to note - producers bring in their own business. No marketing is done by the agency.

 

[Allen Trent]

producers have a smaller base salary and benefits like a standard employee - health, 401k, phone, car, gas, technology, paid etc

Also to note - producers bring in their own business. No marketing is done by the agency.

So, they have no expenses or overhead?

I have heard of many agencies giving possibly 60%- 80% of new commission & around 30-40% of the renewal commission as the cost of servicing the book consumes more of agency resources, etc

I would maybe reach out to more PC specific independent agencies more similar to yours, not necessarily all the private equity purchased ones of recent years