Wharton Study Finds Agents, Brokers Play Critical Role in Buying Process
National News • June 8, 2005
Profit-based contingent commissions align the interests of independent agents and brokers and the insurer so that correct pricing of policies is achieved, thereby alleviating adverse selection, ...
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Subject: RE: Commissions vs. Fees
Posted On: June 9, 2005, 7:09 am CDT
Posted By: Jazz
Comment:
I see more talk by Agents/Brokers that they want to be considered on the same level as the customers accountants and attorney. If you want to be treated that way and bill by the hour, how much would you charge per hour, $200, $500, $750? When you look at these figures most customers would tell you to take a hike. However when you get down to it these per hour figures are substantially less that what a moderately successful producer is bringing in. Do the math, a producer's gross commission is $2,000,000 a year and works about 1,920 hrs., this works out to $1,041 per hour. I realize that the producer is splitting that with the house, but what it gets down to, the customer is paying an agency $1,040 per hour. How many of the so called Professionals charge that much. In conclusion if you want to be considered a Professional you can take the pay cut and be a Professional.
Subject: RE: Commissions vs. Fees