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Ok, now I know this may sound like a broken record for those repeated questions, but this one is a little bit more in-depth.
It is directed toward agency owners and their profit and expense.
Ok so how much is the p&c profit margin suppose to be? I'm having trouble figuring out what to pay people.
How much should I offer a person that will handle all back end office? They handle everything but accounting and sales. I will handle all sales.
Assuming i will be paying producers 50% new business and 10% renewal with targets to reach higher commission.
Should i offer him 30% of new and renew after producer split, before producer split? For sevicin and handling all issues in office. A salary instead? Or a split with a cap at 75k then if business is good bonus for the year?
What is deem fair in the industry? I will pay all overhead and he will just service and deal with back end.
If i do before split I as a agency owner will only have a 20 % margin with out calculating expense.
After I have 40% margin.
What Bout a different split for new and renew for the him?
Anyways let's say an agency makes 1000000 in commission. How much do you pay producers how much do pay the back end office guy. Keep in mind the back end office guy is a kinda like a partner situation but no shares in company. I put out money, she put out expertise.
- - - - - - - - - - - - - - - - - -
Should the splits be something like this? How would you allocate your agency profits.
25% agency profits
50% payment to producers
25% expense payment / staff
It is directed toward agency owners and their profit and expense.
Ok so how much is the p&c profit margin suppose to be? I'm having trouble figuring out what to pay people.
How much should I offer a person that will handle all back end office? They handle everything but accounting and sales. I will handle all sales.
Assuming i will be paying producers 50% new business and 10% renewal with targets to reach higher commission.
Should i offer him 30% of new and renew after producer split, before producer split? For sevicin and handling all issues in office. A salary instead? Or a split with a cap at 75k then if business is good bonus for the year?
What is deem fair in the industry? I will pay all overhead and he will just service and deal with back end.
If i do before split I as a agency owner will only have a 20 % margin with out calculating expense.
After I have 40% margin.
What Bout a different split for new and renew for the him?
Anyways let's say an agency makes 1000000 in commission. How much do you pay producers how much do pay the back end office guy. Keep in mind the back end office guy is a kinda like a partner situation but no shares in company. I put out money, she put out expertise.
- - - - - - - - - - - - - - - - - -
Should the splits be something like this? How would you allocate your agency profits.
25% agency profits
50% payment to producers
25% expense payment / staff
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