I own an insurance agency that has been built up on life/health/disability for many years. However, I've been getting more and more requests from clients for things like E&O, Worker's Comp, and homeowner's.
As a result, I got our ducks in a row and now our agency is signed up with several wholesalers and my quoting/production is up threefold this month so far.
The problem is -- I can't handle this workload. Especially with 2 rookie agents in the office (my wife and my assistant, both of whom just got their Life/Health licenses this past year) that I need to train.
I'd rather focus on my specialty - small group benefits - and hire an experienced P&C whiz to take care of that side of business. From there, I hope to start doing some auto, and eventually getting contracted with some of the major name-brand carriers.
The question is -- what's a fair commission split for this new agent? I'd be paying for all office and sales-related expenses (supplies, overhead, E&O, gas, etc.). Would probably allot a marketing budget for advertising, client meals, etc. This would be a commission-only position.
I'm thinking of something like the following: (agent/agency)
- New P&C business, existing client 40/70
- New P&C business, new client 70/30
- New L&H business from a new P&C client 25/75
Do those splits sound fair? I'm trying to reward their expertise on the P&C side, give incentive to cultivate new business, but still make marketing to existing clients worthwhile.
Our current agent agreement for L/H is basically 60/40 for all new business generated (I deal exclusively with existing clients).
Any suggestions would be greatly appreciated. Thanks!!
Thinking of Hiring a P&C Agent...commission Split Suggestions?
Linear Mode
