Agent Compensation

You didn't give us a lot of info to go on with your question. I guess you could say it depends on the contracts you have in place with yourself as to what you can offer an agent below you.
Are you going to give your agents leads? Office access to work out of? Process their paperwork or have them send it in themselves?
Give us a clearer picture please.
 
Sorry for the limited information.

No leads, no office space, just simply access to the companies and affiliation with my agency. This position is more for someone who currently works with another employer, but wants to build a residual commission base so they can eventually step out into the business full time. I first thought about 50% of earned agency commission, but wanted to get some other thoughts.

Thanks.
 
I get all of that with office space and get 80%. No benefits or anything like that, but I think they're thinking about charging a monthly fee.
 
Sorry for the limited information.

No leads, no office space, just simply access to the companies and affiliation with my agency. This position is more for someone who currently works with another employer, but wants to build a residual commission base so they can eventually step out into the business full time. I first thought about 50% of earned agency commission, but wanted to get some other thoughts.

Thanks.

In that case, I would give them about 80% and have them paid their commissions directly from the Carrier(s), unless you wish for them to be captive.
 
Once again, the problem is with the start. If you're on a low commission yourself, 80% may not be very much. If you're on a 120%, then I don't think 80% is enough.
 
I base the commission on the premium of the policy. From $1-$100, commission is 50%, from $101-$250, 60%, and $251 up, 70%. I also pay an advance of 90 days of earned commission and provide a guaranteed number of leads per week. With that being said, it is extremely difficult for sub-agents to make decent money in this business.
 
Back
Top