Commission split with independent agent

Labman · 06-25-2008, 09:11 AM

I'm going to work with Colonial Life in August. I also have a 30 year veteran who is going to mentor me in small group and individual insurance. What is the proper split for a situation like this? I'm very excited that he offered to help and while money is not really the issue, I'm just curious what is reasonable? Thanks!

ABC · 06-25-2008, 03:09 PM

Really a tough question

On the group and indiviudal side I would offer him 20% of the first year.
For that 20% I would say that mentor should go out on some calls with you and help you close some cases.

Another thing you could do on the group health side is ask your sales rep for that company if they will help you close a deal and perfrom an employee benefits meeting for you.

Labman · 06-25-2008, 08:19 PM

20% eh? Heck I was thinking of offering up 50% to him, that is how much value I place on him taking me under his wing. Without his help the learning curve could be very long. In effect I see it as paying him for not only helping me generate some business, but getting me up to speed much quicker that I probably ever could on my own.

Thanks for the input, it was definately different than I expected.

Expat · 06-25-2008, 08:25 PM

Originally Posted by Labman

20% eh? Heck I was thinking of offering up 50% to him, that is how much value I place on him taking me under his wing. Without his help the learning curve could be very long. In effect I see it as paying him for not only helping me generate some business, but getting me up to speed much quicker that I probably ever could on my own.

Thanks for the input, it was definately different than I expected.

If your mentor is any good, then 50% is about right.
It should only take a few weeks or so (assuming you are making enough appointments - AND you are paying very close attention) to garner enough knowledge to enable you to take off by yourself.
The alternative is to crash and burn.

xrac · 06-25-2008, 09:43 PM

Originally Posted by Expat

If your mentor is any good, then 50% is about right.
It should only take a few weeks or so (assuming you are making enough appointments - AND you are paying very close attention) to garner enough knowledge to enable you to take off by yourself.
The alternative is to crash and burn.

A 50/50 split for joint work is fair, if you bring in the client, and he closes them. If he is really good it will be money well spent. As you gain knowledge you can move to doing some work independently but go gradual as you are able.

Labman · 06-26-2008, 10:12 AM

Thanks for the tips guys. I feel very lucky to have someone of his caliber take me under his wing.

The value of venturing outside of Colonial just paid off yesterday, as I referred a indivdual health lead to the agent.

Peter Ryan · 06-30-2008, 11:37 PM

I am independent with a 50/50 split. Getting 50 as an agent these days seems to be a rare occurrence.

I did all the work, all the prospecting, closed the deals, and they provided some support and office, but thats it.

(mostly crummy support, ticking of my clients was always a nice touch)

What are you getting in addition to the training?

Peter

Labman · 07-01-2008, 08:28 AM

Hopefully, in addition to the training, he will cut me in on some business that I can write with Colonial. But, if nothing else the training and time from a 30 year vet will be about all I need.

I'm hoping to cold call small businesses either face to face or via telephone. Working with the independant agent will allow me to mention small group health insurance, something I could not do if I was focusing on Colonial's products alone. That is another huge benefit in my mind.