Hi all,
My apologies if this has been done before or not welcome here...I just wanted to get your thoughts on my compensation model. Background is: I was hired on as a PL account manager in 07/2018. The agency I work for is 85% CL and 15% PL. They were struggling with PL when they hired me on.
At the time, most of the PL was leads sent in by CL producers. CL producers got 50% first year on those accounts. Since joining, I started pushing for us to go after high net worth clients and partnering with financial advisors and COI's. I started meeting with some myself and started bringing in business. I was just an AM so I didn't see any commissions. As of January this year, they made me a PL producer. This is something we've never had at the agency before. I also created work flows for the other account managers and our retention has increased significantly on the middle markets we were losing.
My compensation model is that I focus on high net worth. We consider anything that brings in $4000 or more revenue to be high net worth/VIP. That being said: I get paid 50% commission on every piece of new business i bring in. I receive 10% on VIP renewals and no renewal commission on anything less than $4k revenue a year. If a CL producer brings me an account, I split first year with them. I know CL producers here get quite a bit more on renewals than I for VIP, but the owner's have said they've looked at "Best Practices" but admit they've never had this position in the agency before. We're a 5 shop agency. 20 producers and i'm the only PL producer. They're good people. I was just curious as I've never been in a sales position before this job. I do get a base salary and once I my commission pay goes above the base salary, we "true up" and i get anything over my base pay until i'm "validated." I also service all high net worth clients.
My main question is on the renewal commission, but please don't hesitate to comment on the rest of it. Is 10% renewal commission for high net worth clients a good pay? So far this year, I've brought in $60,000 in new business revenue. ($300,000 in premium.) I'm in AL so premiums are low here.
Thanks for the help, CU
My apologies if this has been done before or not welcome here...I just wanted to get your thoughts on my compensation model. Background is: I was hired on as a PL account manager in 07/2018. The agency I work for is 85% CL and 15% PL. They were struggling with PL when they hired me on.
At the time, most of the PL was leads sent in by CL producers. CL producers got 50% first year on those accounts. Since joining, I started pushing for us to go after high net worth clients and partnering with financial advisors and COI's. I started meeting with some myself and started bringing in business. I was just an AM so I didn't see any commissions. As of January this year, they made me a PL producer. This is something we've never had at the agency before. I also created work flows for the other account managers and our retention has increased significantly on the middle markets we were losing.
My compensation model is that I focus on high net worth. We consider anything that brings in $4000 or more revenue to be high net worth/VIP. That being said: I get paid 50% commission on every piece of new business i bring in. I receive 10% on VIP renewals and no renewal commission on anything less than $4k revenue a year. If a CL producer brings me an account, I split first year with them. I know CL producers here get quite a bit more on renewals than I for VIP, but the owner's have said they've looked at "Best Practices" but admit they've never had this position in the agency before. We're a 5 shop agency. 20 producers and i'm the only PL producer. They're good people. I was just curious as I've never been in a sales position before this job. I do get a base salary and once I my commission pay goes above the base salary, we "true up" and i get anything over my base pay until i'm "validated." I also service all high net worth clients.
My main question is on the renewal commission, but please don't hesitate to comment on the rest of it. Is 10% renewal commission for high net worth clients a good pay? So far this year, I've brought in $60,000 in new business revenue. ($300,000 in premium.) I'm in AL so premiums are low here.
Thanks for the help, CU