Independent Agents or Sub Producers' Commission Structure will vary from agency to agency, owner to owner, but what is a fair sub producer/agent commission structure for the following insurance agent scenario AND taking experience into consideration?
6 years financial services, independent rep - 75% payout - No salaries or benefits, straight 1099
5 years insurance adjusting, independent adjuster - 60-65% payout - No salaries or benefits, straight 1099 or corp to corp
I've tried to find additional information on insurance journal that indicates an "industry standard" for new agent sub producer commission structures, but haven't seen very much and wanted feedback from industry professionals respectfully. Since insurance varies from state to state, let's run this scenario for Texas.
Is 40% on new business and 20% on renewals a fair consideration with no draw, salaries, hourly pay or benefits? Seems like no salaries, no draws, no benefits would come with a commission model much like the other two models above with higher payouts and the agent assuming most of the costs associated with doing business.
Now consider the prospective agent already pays for gas, laptop, internet connection, salesforce.com, assumes his/her own tax burdens and offices out of his/her place. So outside of lead expenses and charge backs, does it really cost 60% to 80% for the agency operating costs?
Thank you for feedback, insight and opportunities