Agent Compensation - Tell Me!

Emmaus

Expert
32
I'm developing an agent compensation plan for my P&C agency.

The licensed agent role compensation is as follows:

-1099 pay
-100% new business first year,
-100% new business AND 30% renewals of their sales each year following.

Is this a good plan?

Are most agents 1099? I was 1099 at another agency with 6 agents (we all were 1099)...

I'd love your input!

Oh, and how do you keep track of their renewals? Can this be done without agency management software through the carrier's websites?
 
I'm developing an agent compensation plan for my P&C agency.

The licensed agent role compensation is as follows:

-1099 pay
-100% new business first year,
-100% new business AND 30% renewals of their sales each year following.

Is this a good plan?

Are most agents 1099? I was 1099 at another agency with 6 agents (we all were 1099)...

I'd love your input!

Oh, and how do you keep track of their renewals? Can this be done without agency management software through the carrier's websites?

Many agents are 1099, its easier that way for both the agent and the agency owner because you aren't paying for an extra computer in the office or hourly or salaried pay.

That compensation plan is really great and generous. I've heard of going as high as 25% for renewals. But if you have the right people who will keep bringing in business for you then 30% is a really good amount.

Hope that helps!
 
I'm developing an agent compensation plan for my P&C agency. The licensed agent role compensation is as follows: -1099 pay -100% new business first year, -100% new business AND 30% renewals of their sales each year following. Is this a good plan? Are most agents 1099? I was 1099 at another agency with 6 agents (we all were 1099)... I'd love your input! Oh, and how do you keep track of their renewals? Can this be done without agency management software through the carrier's websites?

We are 100% personal lines and do 85% and 50%.
 
How are you going to make any money off the new business? Are you still producing yourself?

Yep, I'd still be producing (in the beginnings) but since there's no salary, delayed gratification on the new business until renewals come around.

Once service becomes more demanding, I will transition into a CSR role so that I won't need to hire one. Once service is too much for me (should have a few agents by then and a larger book), I will migrate back into a sales position (likely on the life insurance side), let my agents handle P&C, then hire a CSR...But only when necessary.

Included in that plan is reimbursement for all licensure fees as well, an account to my office phone system (they can access it from anywhere with their own username).

So then, it seems I'm a bit on the generous side?
 
How do you track their renewals to cut the checks? Through the carrier websites or through an AMS?
 
You are going to pay somebody 100% and take on all that exposure without any of the benefit up front?

I wouldn't do it, but great set up for the producers even if you are only paying 30% on the backend.
 

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