Commission Splits Question


I am not asking anyone for what they are making specifically, but to those that are working as a personal/commercial P&C producer inside an independent agency: What commission split amount is average between the agency and the producer? Are most producers paid on commission only or base plus commission? Are you selling personal lines or commercial lines? Does your agency cover some/all of your marketing expenses?

Again, I'm not asking for anyone's specific numbers but just what is average to expect.

I'm not sure anyone knows the answer to this. It's all about the type of market you are after, what the goals are, and who does what. Basically, if the deal works for both the agent and the producer, it's a good deal. If not, then one or the other will walk.

Well, I'm not in P&C but it is slightly different in our office. Two ladies that I work with in our office, get some salary plus 15% of their current book. The two gentlemen who work in another office for us, get %25 and some salary.
I don't get any salary, I get 30% of current business and 50% of new business I bring in or any current business where I add a new line of business.
The lady who use to do personal lines here was fired a few months ago and her book was put on the gentlemen in another office and they were told to service it. That office is not at all profitable so they were told to do it to keep their salary.

I find the whole situation very unsatisfactory for me because if my clients pay late, I won't get money in a timely manner either. :mad:
But if I had some salary I'd be able to pay my bills in a timely manner!
Those are all sucky contracts, it really depends on your negotiation skills and what works for you and your primary agent. In a captive or semi captive situation you're gonna have to split in some way...if you get a better up front split on new business then you're probably gonna have to give a little on renewals & vice versa.

If you're a newby then you should be able to negotiate some sort of "guarantee" or salary plus commissions over guarantee, that way you have time to build a book. Don't expect guarantee's to last forever because you will have to eventually produce.
Thanks for the replies guys. I am pretty new and don't really have a book of business built yet that I can support myself on. I'm at a small independent agency (2 producers, 90-95% commercial) and am getting paid hourly, but I am expected to produce, at a 50% split to earn the hourly wage that is paid to me. When I exceed the salary amount, then I can get commissions paid, again at 50%. So I am basically getting paid commission only at a 50% split, but with some commissions advanced to me??

Again, I am new to being a producer. Up until recently, I have been servicing and rating business for another producer (the owner) learning the business. Now, I am transitioning over to bringing in my own accounts and building my own book, but still expected to help him with his. Because I am not solely dedicated to building my own book and still servicing other accounts in the office, I feel like a half CSR, half Producer.
I would like to get paid a fixed salary (for servicing other accounts, etc.) plus commissions at 50% for new business, is that asking too much?

Also, what should I expect to get on accounts that are handed to me by the owner because he is too busy/account is small. I know I shouldn't be getting 50% because it's technically not something I brought in, but I am rating it and selling it.

Thank you all for your responses. I am so glad to have found this forum; it is full of knowledgeable people and useful information.
In a captive or semi captive situation you're gonna have to split in some way...

Whenever there is are two agents on a case and a manager in between them who has to adjudicate a split when the agents disagree on the deal, it is troubling.

A month ago I got screwed by my Colonial manager on a split. I worked the case for six months (it was an orphan that I brought back from the dead files) and another agent who did the enrollment was awarded a much larger portion that I felt I should have received. The other agent was a huge Colonial producer and I only wrote Colonial part-time.

There was nothing I could do about the decision. I just sucked it up... and quit writing Colonial. The company gives their local managers this kind of autonomy and there is no appeal. So I didn't make a big deal about it... I told him it was un-fair, he said "thats the way it is" and I said "Adios amigo."

I still love Colonial... the products and the company... but the local management (district and territory) leaves me with issues about their integrity and honesty. Sooner or later they will self-destruct and new managers will be appointed and perhaps I'll go back.

Basically, I didn't care much for writing Colonial worksite... way too much work for way too low a commission... and the local market had been poisoned by poor service from another large worksite carrier that has a waterfowl as its mascot. There are better ways to make a living... but the training I got from Colonial was good and the other agents I met (with one exception!) have become good friends.

I would not be willing to hire someone at salary/hourly and then give them 50% of new and renewal commission. I would be willing to advance against the commission provided I have the resources to do so. I know of an agency that hires p&c producers and pays 75% of new commission and 25% of renewals. Does not sound like a bad split to me but thats my view as an owner.

Although I would like to figure out a fair plan for both myself and producer I have not as of yet hired producers for 2 reasons. 1) Chargebacks- say producer places commercial account, annual commission is $10,000. I pay him the 75%, customer lapses 1 month later and producer promptly quits immediatly after that. My chances of getting the unearned commission back is zip. 2) Potential disagreements over leads generated by my agency.

Maybe I am not recruiting the right type but, I find most agency hires are quite willing to take the stable hourly rate and always shys away from commission splits.

I know agencies have successful, long term, commission only producers but, I can only see headaches.
I know of an agency that hires p&c producers and pays 75% of new commission and 25% of renewals. Does not sound like a bad split to me but thats my view as an owner.

That sounds like a fair split to salary would force the producer to produce. Personally I don't like guarantee's..can only see them making sense for newby's, maybe like 6 months for new producers.

No salary separates the men from the boys.