Does this seem fair?

loudee · 11-14-2008, 01:34 PM

I have a friend who's sells P&C for a local agency. The agency is independent and paying him commission as follows(he's getting the higher number):

Personal lines---> 55/45 split
Commericial-----> 60/40 split

FWIW he is new but is on track to have a 800k AV first year. Any opinions???

Lou

xrac · 11-14-2008, 09:34 PM

Quote:

Originally Posted by loudee

I have a friend who's sells P&C for a local agency. The agency is independent and paying him commission as follows(he's getting the higher number):

Personal lines---> 55/45 split
Commericial-----> 60/40 split

FWIW he is new but is on track to have a 800k AV first year. Any opinions???

Lou

What do they supply? Office space? Leads? Phone? Computer? Support staff? Any health benefits? etc. You have to know these things to properly evaluate the pay.

djs · 11-14-2008, 11:34 PM

These are probably fairly standard numbers, though in truth, they run the range depending on various expectations.

In the P&C world, this split would normally be for a producer that gets some house leads (yeah, right, won't pay the bills), has E&O covered, maybe phone. There should be a support person in the office to deal with issues like payments, routine service, etc (producer needs to be producing, not servicing).

They will be doing a lot of phone marketing themselves to make this split work.

Dan

loudee · 11-15-2008, 11:10 AM

Quote:

Originally Posted by xrac

What do they supply? Office space? Leads? Phone? Computer? Support staff? Any health benefits? etc. You have to know these things to properly evaluate the pay.

All that's supplied is E&O(which I realize is expensive),one office person and an old computer. There are no other benefits or leads provided. I could see if he was just signing up a few home owner and auto policies, but he is signing up big multi-million companies with 85k plus in AV....each. He'll most likely have a 1 million dollar book after his first year. I just get the feeling he's getting shafted. Maybe I'm spoiled with my 20 percent health commissions.

Lou

xrac · 11-15-2008, 09:38 PM

The split seems a little one sided to me.

djs · 11-16-2008, 12:47 AM

The other big question is who owns the business? I assume the agent, not your friend.

He can always step out on his own, but this isn't a terrible deal to cut his teeth on.

Dan

loudee · 11-16-2008, 01:30 PM

I appreciate the replies. I just felt like he was getting reemed. He has 5 kids and a mortgage and needs every penny. I believe his savings consist of change found in the sofa. And FWIW he does not own his book.

Lou