Producer Compensation Thoughts

Discussion in 'General Insurance Agent Discussions' started by csmith2, Oct 28, 2015.

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  1. csmith2
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    csmith2 Expert

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    I'm hoping to get some input from the community on something my business partner and I have been going back and forth on for a while now.

    Our IA has been open now for right at two years. We have direct appointments with some of the top P&C carriers and several life carriers and we've used those over the last two years to build up a pretty sizable base of premium.

    We both see the future of the company being built with the help of quality producers and we've decided that now's the time to start recruiting.

    The compensation plan we're thinking of is 40 NB/40 Renew with an annual production incentive that would bring you up to 50/50. To make things more enticing we are planning to offer 80% NB the first year and 60/60 the second year.

    What are your thoughts? Are we giving away too much or does this seem reasonable? We're not trying to make a ton on everyone else's backs, just enough to cover expenses with a small amount leftover for profit.
     
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