Producer Compensation-Florida

[saabins]

When a producer brings in an account on an AOR, what is the typical compensation for when the account renews. Is it the same as new biz, or is it considered renewal and therefore the compensation % is less?
Thx

Sandy

[Island Girl Agent]

My rule of thumb is it's NEW for the first policy term that the agency earns commission...which is generally going to mean the first "renewal" after the AOR.

[saabins]

Thank You. that was my thought as well, but I wanted to get some other opinions

[saabins]

Follow up question is, How do agents compensate their producers on renewal? I own a small agency and has a very good relationship with my producer. I want to do good by her but at the same time, I want to grow the agency, so my question is what is the rule of thumb when it comes to commission split between an agent and the agency? Is it 70/30? any advice, opinion is appreciated.
sandras@saabinsurances.com

[Liz]

Follow up question is, How do agents compensate their producers on renewal? I own a small agency and has a very good relationship with my producer. I want to do good by her but at the same time, I want to grow the agency, so my question is what is the rule of thumb when it comes to commission split between an agent and the agency? Is it 70/30? any advice, opinion is appreciated.
sandras@saabinsurances.com

I am also interested to find out how do agents compensate their producers on renewal. Please do tell if you know, it's pretty urgent.

Thanks in advance,
Liz

[mangroveman]

Usual is around 30% of renewal commission. That is what I paid my producers for their renewals, and I would pay them 45% of the NB commission.

As far as AORs go, that was treated the same as any other renewal in my agency.

Feel free to contact me if you'd like to chat more.

I don't own the agency, and haven't for a couple years, but do quite a bit of consulting throughout the Southeast.

(I'm in Florida as well) 941-408-5471 (text if you need me during the day, or you can call in evening)