What is the Real Split ?

[TonyC]

Ok...so let me get this Straight....

Are we talking 30-50% of the Premium Amount?

...or...

30-50% of the Commission?


If its the Commission....what percentage of the premium is the Commission....5, 10, 15 or More Percent?

 

[djs]

On P&C, nobody pays 30-50% of the premium amount. 1st year commissions range from 8%-20%, depending on the product. That would mean in your comment above, the 30-50% would be of the commission amount, or someone will go broke really fast.

Of course, there are times when incentives are involved and agents may pay producers more than they would normally earn, so they can qualify overall for the incentive.

Dan

 

[TonyC]

So what you are saying is....

Producers get 1/2 of 8-20% (of the premium)....is that Right?

On P&C, nobody pays 30-50% of the premium amount. 1st year commissions range from 8%-20%, depending on the product. That would mean in your comment above, the 30-50% would be of the commission amount, or someone will go broke really fast.

Of course, there are times when incentives are involved and agents may pay producers more than they would normally earn, so they can qualify overall for the incentive.

Dan

 

[djs]

What I'm saying is producers get whatever split of the commission you have agreed to. If it's a 50/50 split, premium is $1000/yr, commission of 20% = $200, the producer would get $100, you get $100.

Same thing (though not necessarily the same split) for renewals, if renewals are part of the contract.

Dan

 

[aray100]

New Biz needs to be higher than your renewal. There has to be an incentive to always be writing the new business....

 

[saieddie]

Incentive bonus, maybe?