Producer for an Independent- Commission Only??

[aremboldt]

I am working with an Independent agent to possibly open up a Satellite agency in my town. What is the "norm" for pay for a producer?

Do you see more commission only pay or is it more likely to get a base plus commission?

Thanks!!
Amy

 

[insurancemansam]

Hi Amy,

You usually get about 70% of the actual commission for the policy. Less is a bad deal, more is a good deal. Make sure you own your business without a non compete. Good Luck!

Sam

 

[aremboldt]

Thanks!

So, it's not the norm to get a base pay plus commission, even if that means getting lesser commission?

Thanks!
Amy

 

[djs]

Not sure there is a norm. There are a lot of things that vary depending on the situation.

I've seen a lot of producers with a salary, or a draw, and I've seen a lot with commission only. Part of it depends on whether they get any renewals and if they are expected to service what they sell.

A lot of agents are only willing to pay commission only. They want no risk.

dan

 

[Josh]

There really isn't a norm, have to agree with Dan on that. With that in mind, if there is a base it will usually involve more CSR work and more will be expected. If there is a base you are giving up any chance of owning the business you write. If there is a base, you will most ikley be making insignificant commissions, at least in the p&c world.

If memory serves you're looking to reach out and expand, help move your career along. If that's the goal, going on a straight commission might make a ton of sense, otherwise you may just want to stay where you're at.

 

[aremboldt]

Thank you for the info!

Yes, I am the one looking to move forward with my career. I may have the chance to be Independent, on commission only. Just wanted to hear what others say on that.

Thank you all!
Amy