Producer Contract Negotiations

[William76]

Greetings everyone. I've been wisely advised by others to consider producing for another agency, rather than ownership, and I need help negotiating some remaining details in my contract, please.

1) What's a reasonable agent commission for the new business of medical (health), life, dental, vision, disability policies?

2) What's a reasonable agent commission for the renewal of medical (health), life, dental, vision, disability policies?

My sincere thanks in advance for your advice.

 

[leevena]

Need some additional information. Are you producing group, individual, or combination? What support will you be receiving for; expenses, prospecting, marketing, office space, clerical assistance, etc.

 

[Markthebroker]

You may want to post this specifically in the life as well as health forums, and anywhere else that applies. You'll probably get more/better feedback that way.

 

[goillini52]

Greetings everyone. I've been wisely advised by others to consider producing for another agency, rather than ownership, and I need help negotiating some remaining details in my contract, please.

1) What's a reasonable agent commission for the new business of medical (health), life, dental, vision, disability policies?

2) What's a reasonable agent commission for the renewal of medical (health), life, dental, vision, disability policies?

My sincere thanks in advance for your advice.

1) 0 - 130%

2) 0 - 27%

 

[fed up]

How much experience are you bringing with you?

 

[William76]

Ieevena - I'm licensed in property & casualty, life, and health. I mostly focus on P&C. Life, or health, would just be cross-sell opportunities. They're actually offering quite a bit of support, in the form of clerical, in-office expenses, etc.

Markthebroker - Sound advice. I'm wondering if that means I've got to track two posts. I'll remember for next time.

Goillini - Thank you. At 130% for new policies, the agency is paying me more than their commission. Are you being serious? How'd you arrive at those percentages? Serious question. No sarcasm intended. Also I love your quote about timid salespeople.

fed up - I'm bringing a P&C book of almost $1M in premium. The agency I'm probably leaving hasn't had an easy tool for selling life, and has discouraged me every time I want to sell health, so that experience, and book, are nearly non-existent.

Thanks everyone.

 

[goillini52]

Goillini - Thank you. At 130% for new policies, the agency is paying me more than their commission. Are you being serious? How'd you arrive at those percentages? Serious question. No sarcasm intended. Also I love your quote about timid salespeople.

You asked the commissions on a wide variety of products.

The 130% is for Final Expense. Supposedly, you can get 140% with some carriers through one FMO.
They aren't paying you more than they're getting.

 

[Celena]

Most insurance companies will pay agencies up to 140% of the first year premium. Now considering that they potentially have a new client that is going to pay for their plan for the next 10 + years they can afford to do so in the long run. Some agencies give you super low contact levels because they are greedy taking your earned comp and distributing it to people who #1 don't even sell insurance anymore #2 don't help you sell insurance and #3 run these stupid ridiculous contests to motivate you to work and give some of your earned comp too the peeps that win. That last part obviously wasn't necessary to answer the question. I'm just a bit salty from my last imo. Carry on

 

[KC Catfish]

So is it just not possible for an Agent to contract with the carriers directly?

I'm wanting to strike it out on my own, but it sounds like I can't create my own producer contract without an IMO involved

 

[JackInsuranceMan]

Depends on your experience level.