Advice Welcomed for Discussion with Agency Principles

[scCoastal]

Hello All,

I know the topic of commission splits has been brought up on this forum, and I've talked with other agents about their split.. But, no 2 situations are the same, and I'd really appreciate some input on mine!

I'm 1/3 personal lines agents at a small/med sized P&C agency.. In year 1, I produced $500k in premium and am on track to do $600k in year 2. I'm well connected in the area with lenders, closing attorneys, and realtors. I would say 60% of my business is agency call-in, mostly because I don't have time to work my referral sources.

CSR's handle clerical work, and most of remarking. However, in year 2 I'm already spending some decent time servicing existing clients. We are provided Health insurance & small 401k match.

I really enjoy the agency and people I work with, and would love to stay there long term! Just want to be sure I'm set up with a fair deal before I'm too deep. The area we're located is one of the top real estate markets in the country, with average homes being 450k, and most requiring flood insurance... Making mine & the other personal lines agent (who's very good) big assets.

Would really appreciate input/suggestions on a split that would be fair & profitable for both parties!

Thanks in advance!

 

[insurance1822]

If 60% is agency call ins, I wouldn't be quick to offer good renewals. Geographical areas pay different but in my market I'd pay you 50k salary + some production bonuses per year ( maybe 5-10k more) for that performance. Avg income here is prob slightly above country averages

 

[indienoise]

If your referral sources are as good as you say, and you can't work them due to call-ins, you would probably do better going commission only vs. salary and only produce rather than taking the low-hanging fruit that the agency would get anyway, yes?

Perhaps you should first talk to the agency principal about changing up your role and coming off salary, in exchange for a larger split of new/renewals.