This is a very interesting topic! I'm new. Just studying for the P&C exam and looking to get into the business. One thing I'm confused about is that I hear numbers like the broker/agency split is somewhere around 70%/30% or 75/25 if its a really good agency to work for. How do you keep compensation at 50%? Are agents in a "sellable" agency not paid on renewals?
Depends on a number of factors. 1) types of policies written. Larger commercial policies that have more margins vs small (high volume) personal lines policies that pay smaller commissions 2) What are you providing the agent vs what they self source. If you provide all marketing, leads, tech, and all other expenses it's likely the split is geared more towards the agency I made another video on this channel last year that outlined how 292 agency owners paid and spotted a lot of trends. Feel free to browse here and find that video
@@BetterAgency Makes perfect sense. If the agency supplies leads, and even possibly offers a base salary, that's a very different business model than a 100% commission only brokerage. That 75% split to the producer is definitely only something I hear with full commission positions in a virtual office. I love your content! That other video is amazing as well. Liked and subscribed. Thanks very much for putting so much value out there!
Really good video!
This is a very interesting topic! I'm new. Just studying for the P&C exam and looking to get into the business. One thing I'm confused about is that I hear numbers like the broker/agency split is somewhere around 70%/30% or 75/25 if its a really good agency to work for. How do you keep compensation at 50%? Are agents in a "sellable" agency not paid on renewals?
Depends on a number of factors.
1) types of policies written. Larger commercial policies that have more margins vs small (high volume) personal lines policies that pay smaller commissions
2) What are you providing the agent vs what they self source. If you provide all marketing, leads, tech, and all other expenses it's likely the split is geared more towards the agency
I made another video on this channel last year that outlined how 292 agency owners paid and spotted a lot of trends. Feel free to browse here and find that video
Here's the link to that compensation video
ua-cam.com/video/7a95_tyqW58/v-deo.html
@@BetterAgency Makes perfect sense. If the agency supplies leads, and even possibly offers a base salary, that's a very different business model than a 100% commission only brokerage. That 75% split to the producer is definitely only something I hear with full commission positions in a virtual office. I love your content! That other video is amazing as well. Liked and subscribed. Thanks very much for putting so much value out there!