Industry standard for Agent working for a small non-captive agency

[Prime Jacko]

what is a typical split? 70 me 30 them? and I get to keep my book if I leave?

 

[Prime Jacko]

anyone??

 

[marindependent]

Not sure there is an industry standard on this one. Much of it depends on what you bring to the table and what the cluster/agency brings to the table = and what you can negociate.

Your question lacked many details, such as the state you are writing in, the lines of insurance, commercial vs personal lines, and most importantly your level of experience.

Additionally what is the agency providing in return other than access? Software, CSRs, training, leads...

One thing I will say is that the ability to leave with your own book is a big deal and its a deal stopper for many.

Best of Luck

 

[Allen Trent]

Are you asking how much of the overhead, payroll, taxes & other expenses get split?

 

[Prime Jacko]

For example, Smart Choice takes 30%, you keep your clients.
I haven't seen the actual contract, but did talk to a rep.
I'm asking, if I join a mom and pop non-captive agency with decent carrier appointments, what can I expect? I would try and sell anything and everything, health, life, P&C. Because I have more time than clients, I suppose the strategy would be to get into as many verticals as possible.

 

[Prime Jacko]

Are you asking how much of the overhead, payroll, taxes & other expenses get split?

I have no idea how an employee structure as an agent would work? Trying to learn, thanks in advance.

 

[Allen Trent]

For example, Smart Choice takes 30%, you keep your clients.
I haven't seen the actual contract, but did talk to a rep.
I'm asking, if I join a mom and pop non-captive agency with decent carrier appointments, what can I expect? I would try and sell anything and everything, health, life, P&C. Because I have more time than clients, I suppose the strategy would be to get into as many verticals as possible.

30% of the revenue? 30% of your net after expenses?

What do they provide for that 30%? Do they have a call center for customer service or do you have to employ your own employees for customer service? do they require a physical location or can you work from home/remote?

Are you on your own for figuring out how to handle accounting & payroll?

 

[Prime Jacko]

30% of the revenue? 30% of your net after expenses?

What do they provide for that 30%? Do they have a call center for customer service or do you have to employ your own employees for customer service? do they require a physical location or can you work from home/remote?

Are you on your own for figuring out how to handle accounting & payroll?

I would assume, 30% off the top, and you pay the rest yourself. I assume they do provide some level of support, but you pay your own employees (none to start). I assume you start by working from home, and if you decide an office that overhead is on you. (speculating here).

 

[Allen Trent]

If you instead work for a local independent agent, you would likely be lucky to get 60% of the new commissions & 30% of the renewal commissions if the agency is covering all the overhead, CSRs, insurance, E&O, etc. and/or providing any base salary/draw, whether or not W2 or 1099. Might get a little better initially if you have a lot of experience & are bringing any book with you.

Overhead is a ton these days & Private equity has been on a buying spree of independent agencies the last decade or so.

 

[Prime Jacko]

If you instead work for a local independent agent, you would likely be lucky to get 60% of the new commissions & 30% of the renewal commissions if the agency is covering all the overhead, CSRs, insurance, E&O, etc. and/or providing any base salary/draw, whether or not W2 or 1099. Might get a little better initially if you have a lot of experience & are bringing any book with you.

Overheard is a ton these days & Private equity has been on a buying spree of independent agencies the last decade or so.

Thanks Allen.