Signing An Agent, Question About Commission

[voelkerins]

I am a independent agent, looking to sign on another agent. What is the best commission split for this? The person will work on commission only or maybe per app written, any advice?
I have the office and pay all the bills.

 

[Josh]

Re: Question???

Who will own the book? Will they get trails? Are you providing leads? Are you providing the customer service?

 

[voelkerins]

Re: Question???

I will own the book of business, and help with the customer service, some leads will be provided.

 

[VolAgent]

Re: Question???

Figure out the maximum you can pay and still make it worth you having the person as an agent.

 

[arnguy]

Re: Question???

How about being more specific in making a title for your threads. I just lost 42 seconds that I'll never get back looking at this damn thread!

 

[voelkerins]

Re: Question???

Arnguy, so so sorry for wasting your precious time!!! Don't you have something better to do the be a SMART A$$????
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How about being more specific in making a title for your threads. I just lost 42 seconds that I'll never get back looking at this damn thread!

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@VolAgent
That is my problem, my office has been open 1 1/2 yrs, I do all P&C, she wants to come in and do Life and Health, and of course P&C.

 

[Josh]

Re: Question???

I have to agree with arnguy that it would be more respectful for you to put more thought into the name of the thread so that folks know what it is rather than "Question???".

As a rule, I think that if an agent is on a commission basis then they shouldn't have to do anything they're not getting paid for. If the agent isn't going to own the business then I think you shouldn't have them do the service work either.

It might make sense for you to just hire someone on an hourly so you can focus more on selling and/or consider paying them an hourly and a bonus on production so you can have more control over what you're having them do. I'm not familiar with your area, but most folks would make more money working as CSR at an Allstate agency (or any other agency for that matter) than working sales on the type of a commission structure you're probably wanting to pay them (if we're being honest with ourselves). If they aren't building their own book and/or renewals, what's the incentive for them to work for you? I'm not saying there isn't one, but how excited can someone get about the chance to not make any money when the upside potential is realistically $50-$100. I may be off on my numbers, but that's the line of thinking you should have when you're thinking about how to recruit agents.

What's in it for the agent?
What is their realistic earning potential?
Why should they take a commission job instead of $10-$15/hr as a CSR?
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@VolAgent
That is my problem, my office has been open 1 1/2 yrs, I do all P&C, she wants to come in and do Life and Health, and of course P&C.

Might want to say thanks, but no thanks. Does she have experience doing life and health? If not, odds are you and here most likely won't like each other 12 months from now. On life and health she can start her own shop at decent to great commission levels and on the P&C side it doesn't seem like the commissions would be there. That's not a bad thing, it's just a tough line to recruit to.

 

[Norwayguy]

Re: Question???

Arnguy, so so sorry for wasting your precious time!!! Don't you have something better to do the be a SMART A$$????
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@VolAgent
That is my problem, my office has been open 1 1/2 yrs, I do all P&C, she wants to come in and do Life and Health, and of course P&C.

Actually Arnguy has a point...My first thought was how often do you write on an agent instead of paper....yes it was a flippant reaction. I actually thought you had a question about signing an agent agreement...Your original title left some description out of it....

All that said realize this forum is like the insurance business if you can't take a little **** maybe you shouldn't be here or in the business.

 

[Franz Kafka]

Just remember that if they can write, they will for sure fly away unless you make your split worthwhile.

 

[b61mack]

In the begining you probably can start her out at 50/50. but as soon as she gets educated, she's gone!.