What is a Expected % to Recieve from P&C Brokerage
- Thread starter jcmeyer26
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- #3
60% for someone brand new? And renewals?
Renewals someone else can answer but I wouldn't settle for less then 50/50 on that either as a producer.
You have to think about what your getting in return for this. Your getting a desk to sit at, carriers to write business under a sub code, and what I am assuming is going to be minimal to no training.
The average pay from a direct carrier is 15% if your getting 60% that means you'll get 9% of whatever premium you sell. If you can 20k in premium a month, which is what most agents are going to want you to hit depending on the area, your pulling in $1800 monthly as a producer.
If you can live on less for the first year or two while you build a book then ask for less.
You have to think about what your getting in return for this. Your getting a desk to sit at, carriers to write business under a sub code, and what I am assuming is going to be minimal to no training.
The average pay from a direct carrier is 15% if your getting 60% that means you'll get 9% of whatever premium you sell. If you can 20k in premium a month, which is what most agents are going to want you to hit depending on the area, your pulling in $1800 monthly as a producer.
If you can live on less for the first year or two while you build a book then ask for less.
If they're not providing you any leads and everything you get is on your own AND they're not paying you a salary or draw I would say shoot for 60% easy. You can find agents that will even give you 100% to get started then will do a 50/50 split or something after you prove yourself.
At least that's an offer I got from a few different agents in my area to be a producer for them.
Good luck!
At least that's an offer I got from a few different agents in my area to be a producer for them.
Good luck!
Seems a lot of work 50/50 with no leads and the agent does all the service work!
Or maybe I am paying too much to my agents...
Or maybe I am paying too much to my agents...
- 1,076
50/50 is fair. Most producers don't understand the cost and risk associated with having them around. Phone/desk/management system license/FSC access/ payroll spent doing accounting and commision reconciliation/hand holding/etc cost at least $750 a month. I have a spreadsheet for it and the costs associated with a "commission only" producer are still significant.
