Splits

[mrnewbie]

I started a p&c agency within an existing company. Started with base salary and moving to commissions this year. I perform all agency tasks and am training a new agent right now. We only have abour $1 million in premium right now, but I have no idea how I should be paid for my sales, agency management and training/managing another sales person. Advice?

[Rainmaker]

Compensation models vary greatly within the industry based upon alignment, market-space, product mix, geographic footprints, etc., so a tough question to answer given the limited amount of information you are providing.

It would appear there are three drivers: 1) compensating you for your production; 2) performing agency tasks; 3) training a new agent.

I am assuming the $1M of premium is generating somewhere between $80k - $120k of commissions?

Not a lot of 'meat on the bone' here - and you indicate that you started this agency within an existing company? Am not sure what this means. However, it strikes me as a 'boot strapped' agency for another firm that can cross sell to it...if that's the case, both you and your partner firm are still in the phase of making sacrifices to get this moving forward, and, as such you will run 'temperatures' on the normal metrics associated with compensating for all three of your activities.

Until you get to $1M of commission, or at least close to it, most producing/agency owners are lucky to get 30%-40% of total revenues as compensation for all of their activities. The early phase is most often characterized by wearing a lot of hats, making a lot of sacrifices, and putting in a lot of hours.

Hang in there - it's worth it!