I recently opened a P&C agency with about 300k BOB. I'm thinking of bringing on some 1099 sales agents and was wondering what types of compensation structures some of you use. I want to avoid salary base since there won't be production requirements (1099).
I'll list some basic ideas below, what do you use? Details like commission splits etc. would be helpful. I don't mind giving 100% of new business commission, I really do want to pay what's fair, and don't want to pay more than I can afford (after all, they'll have access to my direct contracts). What do you think is the minimum fair pay structure and what's the maximum?
-Commission only, they get 100% of front commissions, no renewals?
-Commission + % of their sold business renewals? (how do you keep track?)
-Commission + keeping their book after x amt. of years?
Let's brainstorm!!!
I'll list some basic ideas below, what do you use? Details like commission splits etc. would be helpful. I don't mind giving 100% of new business commission, I really do want to pay what's fair, and don't want to pay more than I can afford (after all, they'll have access to my direct contracts). What do you think is the minimum fair pay structure and what's the maximum?
-Commission only, they get 100% of front commissions, no renewals?
-Commission + % of their sold business renewals? (how do you keep track?)
-Commission + keeping their book after x amt. of years?
Let's brainstorm!!!