What is a Fair Split Percentage of Commissions

[agentboy52]

Hi everyone

I am new to insurance industry and currently working at an independent agency. The agreement I have with the agency is straight commission or a 1099 relationship. I currently have my P&C ,Life, accident and health licenses. The agency offered me an evergreen agreement the book of business I am building. I am responsible from A to Z in prospecting, selling, managing, customer service, implementing all paperwork and maintaining customer relationships for the life of the account. The agency provides me with markets/carries, a desk to sit at when in the office and any free training from the carries. What percentage of commission rate should I be asking for under this structure??

Please advise me ,I am looking to better understand the industry compensation models for 1099 reps.

Thanks!
Agentboy52

 

[nyc2phi]

You should get atleast 50% on new business and 50% on renewals.

I would ask or shoot for a 60/40 split with 50/50 on renewals.

 

[Josh]

The 50/50 sounds reasonable. There are a lot of components in situations like these and often times you're going to be the best judge of what's right for you. One thing I would point out is that a lot of times folks get more focused on getting "top" compensation and focus less on more important aspects such as training and being able to actually have a market. There are a large number of agents that have come to this forum and felt like they were getting "ripped off", then went out to get "better" contracts, only to find themselves in a situation where they weren't writing business because they had ignored things such as training, lead generation, and mentoring. Even if you get started at a low compensation level, once you get a few years in and really understand what's going on it's much easier to either change your existing relationship(s) or move on than it is to try to start with "top contracts" right off the bat.

 

[agentboy52]

Thank you for your input on the percentage split.
My next questions should I except participate in profit sharing, or agency bonuses based on Loss runs?

 

[Josh]

Thank you for your input on the percentage split.
My next questions should I except participate in profit sharing, or agency bonuses based on Loss runs?

Most likely not. Each situation like this is much more unique than life insurance or several other products. The best thing you can do is sit down with the person you'd be working for and work out a plan you both feel is fair.

 

[BIG RED IS BACK]

Thank you for your input on the percentage split.
My next questions should I except participate in profit sharing, or agency bonuses based on Loss runs?

do you want to make money or not?

 

[Sales71]

Thank you for your input on the percentage split.
My next questions should I except participate in profit sharing, or agency bonuses based on Loss runs?

Do you even know how that works?

 

[Chevarian113]

Regarding commission splits, I'm still learning the norms in the industry as well and I will be first to admit that the guys on this forum are much more knowledgeable than I am, but the three places I'm talking to about going under are all 70/30 split and provide the market, CRM software, quoting software, and lots of support from fellow agents when I need some help writing. One of these is even providing me coverage under E&O, a desk, phones, and internet, so there are good deals. I must also add that I've helped this agency build a good portion of their business on referrals, so I have a very good relationship with them.

From the sounds of the responses you've gotten here, it doesn't sound like my offers are the norm, but I simply want to say that they are out there. This is all without sacrificing training and support, at least from what I've seen.

 

[b61mack]

agentboy, what was their offer. And what part of nj, are you in.