Whatis Your Commission Rate

[Guest]

See a few posts about this.......

Most all my companies give me 15% new and renewal.

One gives me 16 new and 14 renewal

one gives me 10%

One commerical company gives us 20%

 

[infoe]

Nice. Locked in at 10% new/renewal auto&fire for first two years then down to 8% base on both lines new/renewal with a yearly metric and "opportunity lol" to get as high as 11% for the following year. Captive for now as you know... Going indy.

RBA what percentages would you say youd average with those carriers if you weren't part of the SIAA network

 

[Guest]

you know, I really dont have a clue what Commissions are paid without a cluster,

I do know we get LOTS of overrides, meaning additional commissions as a group, for instance, a carrier will come out and say if we write 30 policies with them winin this certain timephrame, they give us an extra 7% or whatever.

The real money comes in the bonuses, profitability and simple growth bonuses, with NOTHING tied to them , no prodcution requirments, no life sales,

 

[infoe]

I don't want to go off topic, I'm just so weary of clusters, coming from the farm...thinking I'm going to eventually get screwed...however with SIAA you own the book, so you could potentially sell..also could open up another office and just not use them as your carrier cluster right?

What do those other bonuses you're talking about look like?

Forgot to mention that I will probably end up going with one in either case...I mean it's impossible to get setup without them nowadays. I spoke with the local SIAA rep, he said if I purchased a book they could work with me on that book. Why if I purchase a book of business that has appointments would I then take it to SIAA? Still got alot to learn but trying to do as much research as possible.

 

[Guest]

infoe, what state you in?

I believe regular IA's joining SIAA make up like 20% of the agents joining, we get too much power and say as a group.

I do know a few carriers wont put on any new agents unless they are part of SIAA, the rep says, because their system works.

any production requirements are generally noy enforced, hard to splain, we just get alot of perks

 

[Bertolinoins]

Anywhere from 8-24% depending on the line of business. Most are at 15%.

 

[Insurance-Guy]

You know all of my appointments are with the carriers. I will get blasted for saying this I am sure but I think that Iroquois group and SIAA diminish the brand of the carrier. I know an agent who got appointed through smart choice who shouldn't even have a license. I guess what I am saying if it is hard to get direct appointments it should be it increases the value of the agency. But if anyone can go and get appointed by joining a cluster then what is the value of the carrier? I know if I needed to join a cluster I wouldn't feel this way but I just don't understand the carriers position on this. They won't give you an appointment but you can join a cluster and obtain (buy) an appointment. Seems a little strange. I must admit I met with Iroquois group just to see what it was all about but never looked any further once I learned that you don't own your own book.

Back to the question on P and C most of mine are at 15% too. Got some that are 18%...and a few as low as 8% too.

 

[VolAgent]

You know all of my appointments are with the carriers. I will get blasted for saying this I am sure but I think that Iroquois group and SIAA diminish the brand of the carrier. I know an agent who got appointed through smart choice who shouldn't even have a license. I guess what I am saying if it is hard to get direct appointments it should be it increases the value of the agency. But if anyone can go and get appointed by joining a cluster then what is the value of the carrier? I know if I needed to join a cluster I wouldn't feel this way but I just don't understand the carriers position on this. They won't give you an appointment but you can join a cluster and obtain (buy) an appointment. Seems a little strange. I must admit I met with Iroquois group just to see what it was all about but never looked any further once I learned that you don't own your own book.

Back to the question on P and C most of mine are at 15% too. Got some that are 18%...and a few as low as 8% too.

I'm not P&C guy. For an outsider looking it, it seems like the carriers have created a chicken and the egg problem. They'll gladly appoint you once you have some experience, a few other appointments, and a few hundred thousand in premium to roll to them after appointment. Until you have all that, no appointment. So how does a new agent get up and running so they can obtain appointments?

I guess that is where clusters come in. Again, as an outsider, but I'd say that a cluster has more power to make you toe the line than some carrier rep. Its hard to respect someone who was just begging you for business the day before. I guess the cluster could yank all your appointments if you screw up too bad with one carrier?

 

[Insurance-Guy]

I'm not P&C guy. For an outsider looking it, it seems like the carriers have created a chicken and the egg problem. They'll gladly appoint you once you have some experience, a few other appointments, and a few hundred thousand in premium to roll to them after appointment. Until you have all that, no appointment. So how does a new agent get up and running so they can obtain appointments?

That is the whole point the appointments have never been easy to get. It took me 7 years a huge amount of patience, and persistency to get an appointment with one of my carriers. They are an extremely hard carrier to get an appointment with and guess what we are one of two agencies with in 40 miles…to me that means something. Their rates are competitive as can be and they have fantastic service. In about 2 years I have put almost $500,000 of business with them while still growing with most of my other carriers. Do you know how pissed off I would be if someone opened a cluster agency right down from me and got an appointment with this carrier through a cluster. They are not a member of any clusters. Yes they want to see some numbers; they want some goals and a commitment. Basically why should someone be able to "buy" a turnkey insurance operation with appointments that have taken others years to establish? Some of these carriers that have went this route such as Travelers and Safeco have lost some respect to us IA's that are not a member of a cluster group…why do I want to write business with a company that any kid on the block can write with. It kind of makes them like Progressive IMHO. I have had a company that I have tried to get an appointment with for over 5 years and after they blew me off the last time...I told them you know what I don't need you anyway. My numbers were absolutely great…and they were just wasting my time. The same TSM stopped by last year to see if I was still interested in an appointment just flat out told her I am going to make it my mission in life now to replace everyone of your policies I can, still don't need you.
The thing is if every company can offer the same policy that I can what makes my agency different? That is part of having companies to choose from but when someone looks for Progressive and every single P and C agent represents them then what is the big deal if you have them too…nothing special about the company at all…find one every block. I will admit I am extremely biased on this because an agent that we got rid of went and opened a Smart Choice Agent cluster thing…I Truly, Truly mean this if they will give this moron an appointment they will appoint a F____G monkey! I am not putting down anyone who has started out and built your own IA agency as a member of a cluster and I hope this post isn't taken that way…but when you think about it there is something wrong about being able to buy appointments, which is what the cluster program is all about. Other wise why would they even exist. IF a company won't appoint you but you can join and organization for a split of the commissions and X number of dollars to join and now you can get an appointment with that carrier? I may be missing something…as I said I DON'T know a lot about the cluster programs…

 

[VolAgent]

I understand your point, and I certainly see why you feel that way. But I come back to my point. If new agents can't get appointments except through clusters, then how else is a new agent supposed to start out? There has to be some process via which a person can start a new agency.