Expense to Commission Ratio

[INDY77]

I am trying figure out when, as an agency owner, you starting "good" money.

What percentage of the offices annual commission are you guys spending on expenses/overhead? This would include all expenses, including payroll.

This will give me a good idea as to how much premium I will need to make the kind of money I want in this..... Die slowly trying to get rich business!

Example:

100,000 in commissions from 1 million in premium. At 50% expenses, u take home 50,000

 

[plewi003]

You shouldn't be taking home less than 40%.

 

[INDY77]

Thank you for the response plewi!

 

[insurance1822]

I am trying figure out when, as an agency owner, you starting "good" money.

What percentage of the offices annual commission are you guys spending on expenses/overhead? This would include all expenses, including payroll.

This will give me a good idea as to how much premium I will need to make the kind of money I want in this..... Die slowly trying to get rich business!

Example:

100,000 in commissions from 1 million in premium. At 50% expenses, u take home 50,000

Well I took in over $200,000 and my fixed expenses are rent $200/month...phones $130/month....E&O $130/month...postage $350/month. Now we pay our master agency 10% of our commissions SO after that I'm taking home about 80%. I don't spend 1 dime on marketing it's all referrals.

 

[nyc2phi]

Well I took in over $200,000 and my fixed expenses are rent $200/month...phones $130/month....E&O $130/month...postage $350/month. Now we pay our master agency 10% of our commissions SO after that I'm taking home about 80%. I don't spend 1 dime on marketing it's all referrals.

$200 for rent?! How did you pull that off.

My expenses, other than the price, are the same.
I do some marketing such as mailers and a couple leads here and there. Other expenses pop up like management systems and licensing renewals but they don't add up to much.

Keep producing and you won't have to worry what your expenses are.

 

[insurance1822]

$200 for rent?! How did you pull that off.

My expenses, other than the price, are the same.
I do some marketing such as mailers and a couple leads here and there. Other expenses pop up like management systems and licensing renewals but they don't add up to much.

Keep producing and you won't have to worry what your expenses are.

I have a friend (and client) who owns 300+ properties including a building which houses his real estate office (with 50+ agents) where my desk is located. A desk sitting in a 10ft x 10ft subleted office doesn't cost much!

 

[indienoise]

I have a friend (and client) who owns 300+ properties including a building which houses his real estate office (with 50+ agents) where my desk is located. A desk sitting in a 10ft x 10ft subleted office doesn't cost much!

Ah, is THAT how you get all those referrals?
Location like that is nice, I don't cold call either.