We have always payed a salary plus commission to our producers. This has worked fairly well so far.
Now considering hiring a 1099 producer but not sure how to compensate. Talked with other agencies, but still not sure of the right compensation and/or expense allowance - mix.
Would appreciate producers and/or agency principles commenting.
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We have always payed a salary plus commission to our producers. This has worked fairly well so far.
Now considering hiring a 1099 producer but not sure how to compensate. Talked with other agencies, but still not sure of the right compensation and/or expense allowance - mix.
Would appreciate producers and/or agency principles commenting.
.
Please, this is a forum of highly respected professionals, thus, the correct words are "paid" and "agency principals."
BTW, I don't understand what your problem is about. If they are strictly independent contractors, then issue them a 1099 for all emolument over $600 in a calendar year.
The commission structure we used was 50/50, producer does all the work of generating leads, selling them, servicing, etc.
The house provides some support, marketing the accounts at renewals, and billing and certificate issuing.
Thanks for the reply. As I mentioned above, we never did a 1099 and interviewed a few people who were asking for the sky apparently.
One guy wanted 100% first year, 75% renewal, another wanted 50/50 plus a minimum/month for expenses. The latter one we agreed to, until we received his cell phone bill.
1099 compensation ???
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