Seeking Commission Splits with an IA

[SecondCareer]

Ok, so now assuming that not having a non compete clause is unlikely, what commission splits should I be looking for on new/renewal policies?

 

[Mike Siegal]

Ok, so now assuming that not having a non compete clause is unlikely, what commission splits should I be looking for on new/renewal policies?

Depends what you can negotiate and what you want. I've seen 100/25.

 

[SecondCareer]

If i may, What prompts you to pursue PC? Is is the money? or perceived easiest of the biz? Let's state there, and "I'M SURE" some of the guys here can help you better.

A few years back I started to look into opening up my own business. I ended up looking at a SF career. To see if it would be in my best interest, I worked part time for a year and a half. I learned a lot about the business and myself. I do not think it is easy money with little work. Maybe after 20 years of solid work, but not right away. I feel that my skill set, work ethic, and personal relationships and networks would make me successful in this endeavor. I do not plan to just mine from my own social network, because there is a finite supply of that. But I do have a referral system and networking plan that I plan on using. I work at one of the financial exchanges in Chicago and do well there, but the pit based business model is dieing and I don't want to be left without a chair when the music stops. The fact that I think I can put in 20 hours a week into insurance while I can still earn from my current job is why I am interested in P & C.

 

[Mike Siegal]

A few years back I started to look into opening up my own business. I ended up looking at a SF career. To see if it would be in my best interest, I worked part time for a year and a half. I learned a lot about the business and myself. I do not think it is easy money with little work. Maybe after 20 years of solid work, but not right away. I feel that my skill set, work ethic, and personal relationships and networks would make me successful in this endeavor. I do not plan to just mine from my own social network, because there is a finite supply of that. But I do have a referral system and networking plan that I plan on using. I work at one of the financial exchanges in Chicago and do well there, but the pit based business model is dieing and I don't want to be left without a chair when the music stops. The fact that I think I can put in 20 hours a week into insurance while I can still earn from my current job is why I am interested in P & C.

I would look at mid-sized INDEPENDENT agencies. Forget the chains...dead end.

 

[todd02]

Ok, so now assuming that not having a non compete clause is unlikely, what commission splits should I be looking for on new/renewal policies?

You'd assume right. Any established IA would never give away a book or not be concerned about a non compete. To much risk to their Agency

 

[SecondCareer]

Just one more question. What would have a more favorable commission structure/ exit agreement, an IA or a cluster?

 

[todd02]

Just one more question. What would have a more favorable commission structure/ exit agreement, an IA or a cluster?

Probably a buyout option of at least 1x annual revenue. Again you run into causing tons of potential problems/disruption to the IA's business

 

[Gulfman]

You'd assume right. Any established IA would never give away a book or not be concerned about a non compete. To much risk to their Agency

This guy said (unless im mistaken), that he's bringing in his own bob. Or is willing to go out n get his own Bob.

(unless you're giving out leads???) Who owns that BOB? If said agent brings in his own leads n clients who owns that BOB?

 

[Mike Siegal]

Probably a buyout option of at least 1x annual revenue. Again you run into causing tons of potential problems/disruption to the IA's business

What kinda potential problems you looking at Todd?
Thanks man...!

 

[todd02]

What kinda potential problems you looking at Todd?
Thanks man...!

Not an Indy but Ins1822 mentioned them in first page.