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
commission amounts
Moderators: Josh, independent guy
-
- Insurance Journal Addict
- Posts: 30
- Joined: Tue Oct 11, 2005 10:16 am
- Location: Hudsonville MI USA
- Contact:
commission amounts
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!
You have a perception problem with how much commission a 2 Million book produces.
Good Luck!
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!
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!
-
- Insurance Journal Addict
- Posts: 267
- Joined: Wed Mar 15, 2006 8:48 pm
- Location: san francisco
-
- Insurance Journal Addict
- Posts: 49
- Joined: Mon Nov 28, 2005 8:09 am
- Location: East Tennessee
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.
A $50,000 base salary, with 35% commission would be a very sweet deal, and probably will not be found very often.
-
- Insurance Journal Addict
- Posts: 212
- Joined: Mon May 15, 2006 1:44 pm
- Location: Northern CA
split
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.
$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.