Independent Contractor Pay?

[indienoise]

OK, so hopefully once I have my own shop set up within a few months, I'm looking at bringing on a friend to help with marketing. He has no insurance experience, so we would have to get him licensed first, but he has a background in telemarketing. He would be focused more on preferred business (personal lines initially), as my nonstandard efforts and other non-insurance endeavors will keep me plenty busy. I would initially bring him on part time for marketing only, no expectations to service policyholders. He says he would continue with his full time gig as well unless he does well enough selling insurance. I would like to see him earn enough to work with me full time, so he may eventually start doing service work at that point.

So knowing my short term and long term outlook, I'd like to hear what compensation plans you guys have with your IC (non-salary) producers, as well as the salaried ones, as thats something I'll need to consider in the future. If you were in my shoes, would you pay for his licensing and e&o costs, or deduct that from his commissions? What commissions do you guys pay producers on new and renewal?

Thanks in advance.

 

[Arnage150]

OK, so hopefully once I have my own shop set up within a few months, I'm looking at bringing on a friend to help with marketing. He has no insurance experience, so we would have to get him licensed first, but he has a background in telemarketing. He would be focused more on preferred business (personal lines initially), as my nonstandard efforts and other non-insurance endeavors will keep me plenty busy. I would initially bring him on part time for marketing only, no expectations to service policyholders. He says he would continue with his full time gig as well unless he does well enough selling insurance. I would like to see him earn enough to work with me full time, so he may eventually start doing service work at that point.

So knowing my short term and long term outlook, I'd like to hear what compensation plans you guys have with your IC (non-salary) producers, as well as the salaried ones, as thats something I'll need to consider in the future. If you were in my shoes, would you pay for his licensing and e&o costs, or deduct that from his commissions? What commissions do you guys pay producers on new and renewal?

Thanks in advance.

50% of new and renewal. eat what you kill.
no salary.
pay for his licensing expenses.

 

[bayoubelle]

50% of new and renewal. eat what you kill.
no salary.
pay for his licensing expenses.

Isn't 50% kind of low? why not 70% as I've seen mentioned on here?

I am in a similar situation as an IC producer for a regional independent agency. I am training on multiple carrier systems and have yet to make a dime, plus I have to travel for 3 days of on-site training.

Should I be compensated a flat rate for training since I am being directed like an employee?

I don't have a non-compete clause and I can take the business I write with me. My insurance industry career aspirations don't involve sales...I'm just selling to pay a few bills

 

[indienoise]

Training is part of the deal no matter what you do. Even if you're an ic, you gotta do it. This is likely carrier mandated.

Is 50% low? It depends. Who is providing the leads? Who is paying your e&o? Whose computer and office supplies are you using? Who is paying referral fees and responsible for any marketing? 50% could be low, or high.

 

[insurance1822]

100% new business commission. Tiered renewals. Make 25% renewal easy to hit & make 50% renewals require significant production. You don't want to be giving out 50% renewal

 

[Indiana_Adam]

The agency I work for is amazing. I am paid 70% of both new business and renewals. Agency takes 30%. I am provided no leads (I do get the call-ins/walk-ins). All cold calling and networking for new business is on me. When I firs got my license, I was hired on as an agent assistant for a captive. I covered the cost of my licensing and testing and then she reimbursed me after completing. Make him pay out of pocket initially. That way, he has skin in the game until he gets it all done. The agency also covers my E&O.

 

[agentinsouth]

The agency I work for is amazing. I am paid 70% of both new business and renewals. Agency takes 30%. I am provided no leads (I do get the call-ins/walk-ins). All cold calling and networking for new business is on me. When I firs got my license, I was hired on as an agent assistant for a captive. I covered the cost of my licensing and testing and then she reimbursed me after completing. Make him pay out of pocket initially. That way, he has skin in the game until he gets it all done. The agency also covers my E&O.

What lines?... A P&C agency might/ could find it self in financial trouble w/ that payout if they have several agents. I am ok w/ the front end, but the backend split numbers from an overhead standpoint don't add up.

 

[indienoise]

What lines?... A P&C agency might/ could find it self in financial trouble w/ that payout if they have several agents. I am ok w/ the front end, but the backend split numbers from an overhead standpoint don't add up.

The agency I was with before i went out on my own gave me 65 on new and renewal, but i was truly an independent contractor in every sense. They got me my appointments and paid my e&o and that was pretty much it. I conducted business from my own office, got my own leads, had my own office supplies, did all the service work on my clients etc etc. Which is why after a couple years experience i went on my own.

 

[agentinsouth]

The agency I was with before i went out on my own gave me 65 on new and renewal, but i was truly an independent contractor in every sense. They got me my appointments and paid my e&o and that was pretty much it. I conducted business from my own office, got my own leads, had my own office supplies, etc etc. Which is why after a couple years experience i went on my own.

That makes more since!

 

[Indiana_Adam]

P&C and life. 2 of the agents do some health for existing clients. 4 agents and two office ladies. Fairly small shop.