antek227
Expert
Hey guys, I know this has been talked about at length.
However, I figured i'd run this by and see if the consensus was that it is fair or not. It's an independent agency in NJ and I will be writing commercial & Personal lines.
I was just offered the following structure.
Producer split on new business will be 40% base that increases by 5% points every time a new tier bracket has been reached A bracket consists of $40,000 of written premium capping out at 55%. Will reset monthly.
I would receive access to the entire Vertafore Agency Platform, Broker Briefcase, ModMaster and Velocify. I would also receive email marketing automation, business cards, stationary, etc, as well as a desk and a phone and be covered by their E&O. I would have to provide my own laptop through. They said that they would provide up to 5 real time leads if i wanted. (Why wouldn't I?)
Renewals would be at a split that is tiered based on the trailing 12 month retention. Anything less than a 80% retention rate would get 15% split. 80% retention will yield a 20% split increasing by 1 point for every point of increased retention. Capping out at a 40% renewal split for 100% retention.
I'd have to service my own book until i produce $250,000 in revenue and then if i wanted i could have the agency do the servicing and only receive a flat 20% on renewals.
Contract will have a 2 year non-compete and non-piracy clause. If the agency terminated the contract, the agency will pay me 20% of what ever commissions i received over the previous 12 months.
Vesting would begin at $500,000 in revenue and Will be fully vested after 5 years. Vested position will be equal to 50% of book of business. Non-Compete must be in force in order to qualify.
Please let me know what you think. I cant tell if this is a really great or a really bad deal. lol
Thanks in advance.
However, I figured i'd run this by and see if the consensus was that it is fair or not. It's an independent agency in NJ and I will be writing commercial & Personal lines.
I was just offered the following structure.
Producer split on new business will be 40% base that increases by 5% points every time a new tier bracket has been reached A bracket consists of $40,000 of written premium capping out at 55%. Will reset monthly.
I would receive access to the entire Vertafore Agency Platform, Broker Briefcase, ModMaster and Velocify. I would also receive email marketing automation, business cards, stationary, etc, as well as a desk and a phone and be covered by their E&O. I would have to provide my own laptop through. They said that they would provide up to 5 real time leads if i wanted. (Why wouldn't I?)
Renewals would be at a split that is tiered based on the trailing 12 month retention. Anything less than a 80% retention rate would get 15% split. 80% retention will yield a 20% split increasing by 1 point for every point of increased retention. Capping out at a 40% renewal split for 100% retention.
I'd have to service my own book until i produce $250,000 in revenue and then if i wanted i could have the agency do the servicing and only receive a flat 20% on renewals.
Contract will have a 2 year non-compete and non-piracy clause. If the agency terminated the contract, the agency will pay me 20% of what ever commissions i received over the previous 12 months.
Vesting would begin at $500,000 in revenue and Will be fully vested after 5 years. Vested position will be equal to 50% of book of business. Non-Compete must be in force in order to qualify.
Please let me know what you think. I cant tell if this is a really great or a really bad deal. lol
Thanks in advance.