What is the Real Split ?

[John Siegal]

I just signed up for the PC course...a grueling 200 hrs required in my state.

I am going to sell P/C ...with the hopes of "eventually" getting my own agency.

I know how to get leads and close business...

What is a fair split for an agent who brings in their own business?

thanks in advance!

 

[MedMalAgent]

Re: What's the Real Split.....?

What support are you getting from the agency? There are a lot of variables.

 

[TonyC]

Re: What's the Real Split.....?

Good point.

I wonder how much support is needed to get started in PC?

 

[MedMalAgent]

Let me start off by saying all agents are expected to “bring in their own business”. That is why you are being paid. It does take a lot of support.
Items to consider about the agency:
Are you getting a salary or draw?
Is the agency automated?
Do you have a CSR?
How much marketing will they provide?
Items to consider about yourself:
Are you educated?
Are you experienced?
Do you have a track record of success?
I just hired a producer. I also worked with a consulting firm to educate myself about the process and to get an idea of the going rate for a commercial lines producer. In my state the market is flooded with great producers looking for work. I had my pick of the litter. I hired someone with a college degree, who had 3 years experience, and a track record of success. He looked at other agencies but at the end of the day he thought my agency would be the best fit.
According to my sources the going rate is as follows for an agent working for an independent agency:
P&C New business:
35%-50%
P&C Renewal business:
30%-40%
The higher the commission reflects a position with no salary or draw.

 

[pcguy]

30-50% as an employee with benefits and expenses paid for or a 1099'd agent with everything out of pocket?

I'm looking to 1099 a sales person and split 50/50 new and renewal. All expenses would be their's but we provide the markets, management system, and back room support. Trying to determine if this is fair for everyone.

 

[djs]

30-50% as an employee with benefits and expenses paid for or a 1099'd agent with everything out of pocket?

I'm looking to 1099 a sales person and split 50/50 new and renewal. All expenses would be their's but we provide the markets, management system, and back room support. Trying to determine if this is fair for everyone.

If they are decent, I'd pay them 80% of first year commissions, 50% on renewals. Why? Because they will go out on their own if you don't. It doesn't take that much to be 'the agent' rather than the producer.

If it's 50%, you should be covering some significant marketing expenses, or you make that part of the deal, that they get 50%, and 25% to use towards marketing....

Dan

 

[MedMalAgent]

If they are decent, I'd pay them 80% of first year commissions, 50% on renewals. Why? Because they will go out on their own if you don't. It doesn't take that much to be 'the agent' rather than the producer.

If it's 50%, you should be covering some significant marketing expenses, or you make that part of the deal, that they get 50%, and 25% to use towards marketing....

Dan

Wow! I would say 80% for a subagent. Even at 50% new and 40% renewal I hope to break even on a new producer the first two years. I provide everything you need to write business and then some. Automation, marketing, and general business expense for a new producer is not cheap. If certain metrics are met I also provide ownership so they don't have a reason to leave.

 

[pcguy]

What type of marketing do you guys provide them?

 

[MedMalAgent]

What type of marketing do you guys provide them?

TM
Postcards
Tradeshows
Agency generated leads and X-dates

 

[machmezie]

I get 100 percent of my broker fee and my renewals but I have to generate my own bizness I have no walk ins or calls in. I've been with this company for two months and finally started making money last weeks brought in 3700 but busted my ass off, 12 hour days for 6 days.