Question About Commissions

[term2u]

Dual is the term used but you can many more than two with some companies. I believe I have 3 or more with Protective (1 with Pinney/picnic). IMOs differ greatly on how or if they earn their override.

Thanks, WinoBlues. I guess it's really tough to be able to assess how a new BGA will operate and what their processes look like.

Also, I have a buddy in particular who sent me over his comp grid and he's getting around 125-140% with most carriers, on a 30yr term. He's an ex-Wall St guy and his broker is back East, but that seems way higher than most comp levels that you see.

 

[WinoBlues]

Thanks, WinoBlues. I guess it's really tough to be able to assess how a new BGA will operate and what their processes look like.

Also, I have a buddy in particular who sent me over his comp grid and he's getting around 125-140% with most carriers, on a 30yr term. He's an ex-Wall St guy and his broker is back East, but that seems way higher than most comp levels that you see.

Yeah, I have a couple large ones also. Some is bonuses above the comp from the carrier. On term it does not matter since most does not pay renewals.

 

[term2u]

Yeah, I have a couple large ones also. Some is bonuses above the comp from the carrier. On term it does not matter since most does not pay renewals.

Interesting. His are all right around that range on term, which is the highest I've seen. My understanding is that most carriers will pay out a max of 90% to the agent and the the remaining comp will have to be paid in an override from the BGA. Why would the 125-140% comp not matter on term?

 

[WinoBlues]

Interesting. His are all right around that range on term, which is the highest I've seen. My understanding is that most carriers will pay out a max of 90% to the agent and the the remaining comp will have to be paid in an override from the BGA. Why would the 125-140% comp not matter on term?

I meant that part is bonus and part comp from the company does not matter on term because most pay heaped comp on term with no renewals. Why it would matter on permanent is because the renewals would be based on the lower scale, say 90% than on a higher scale.

That all being said, I find I am starting to put more with a broker that does all the tracking and case management than with one I get paid more with. Comp is just a part of why I use a particular brokerage.

 

[term2u]

I meant that part is bonus and part comp from the company does not matter on term because most pay heaped comp on term with no renewals. Why it would matter on permanent is because the renewals would be based on the lower scale, say 90% than on a higher scale.

That all being said, I find I am starting to put more with a broker that does all the tracking and case management than with one I get paid more with. Comp is just a part of why I use a particular brokerage.

Yeah, makes sense. I need to check with my friend because apparently his BGA gives him that high of comp levels, but also takes care of everything else. He said that he doesn't even quote out anything - They just send him a spreadsheet over. He mostly does very high faces and big deals, but pretty crazy.

It's hard to delineate as to what production threshold you should be at, in order to justify giving up more comp for more concierge service. I find that I just don't have the volume to justify giving up that much in comp (opportunity cost). I'd rather keep the most of what I'm able to hunt down. With that being said, I definitely need to start marketing more and generating more leads, as does everyone. Haha.

 

[bluemarlin08]

I have been with several over the years, some paid slightly more than my current, but the personal service I receive is hands down better than anywhere else. American Brokerage Company