commission amounts

jnsins · Post by **jnsins** » Thu Apr 20, 2006 10:30 am

What does a good broker pay? Do you get base plus commission. What is the average base and what is the average commission percentage? Do you get a personal CSR after 1 or 2 million in WP?

I would guess a good producer would get 50,000 base plus 35% commission split to the producer? On a 2 million dollar book this would pay the producer $140,000-155,000 a year not including new business money?

Thanks

miinsguy · Post by **miinsguy** » Thu Apr 20, 2006 11:31 am

I doubt your numbers are realistic. No firm is going to pay the broker 50% + of the income from their book.

You have a perception problem with how much commission a 2 Million book produces.

Good Luck!

wlunday · Post by **wlunday** » Thu Apr 20, 2006 12:22 pm

I don't know if I'm a "good broker" or not, but I try to make the compensation as good as possible for my producers. I offer my commercial people a decent base, offset by commissions. 50% first year and 30% renewals. These people really only use the "base rate" when figuring their vacation pay or sick time. They earned on the average $62 per hour worked last year, all commissions.

That's not too bad for not having any investment in the agency.

And, yes, at one million of premium my folks get a CSR!

InsAgentSF · Post by **InsAgentSF** » Thu Apr 20, 2006 7:56 pm

Pretty good deal.

jctwindad · Post by **jctwindad** » Fri Apr 21, 2006 11:46 am

A commercial book of business will usually average around 12% commission, so you're looking at around $240,000 commission for the agency, on average. My producers get 35% of that, with no base - so $84,000. I offer a base salary for the first 3 years or so, just to supplement their income until they are able to build a book of business, but during that time, they are only getting 30% commission on new business, and nothing on renewals. After 3 years, or $150,000 total commission book(whichever comes first), they go on a 35% commission (new and renewal). They usually have a dedicated CSR when their book gets to around $1,000,000.

A $50,000 base salary, with 35% commission would be a very sweet deal, and probably will not be found very often.

jctwindad · Post by **jctwindad** » Fri Apr 21, 2006 11:47 am

Previous response was based on a $2 million premium book

volstrike3 · Post by **volstrike3** » Mon May 15, 2006 6:36 pm

My agency pays 40% new, 30% renewal. Bonus is 3% of your revenue when contingent commissions are paid.
$250k in revenue you get a CSR.
$500k commission, you get a company car/expense account.
Over $1 mil in revenue, you get 45% new 35% renewal.

jctwindad · Post by **jctwindad** » Tue May 16, 2006 7:12 am

Sounds like your company's compensation is slightly better than average. Curious about your name "Volstrike3". I'm from Tennessee, so anything with "vol" in it usually designates a Univ of Tenn fan. Are you?