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Hi Guys, what amount of WP is one producer commercial agency in California able to produce at it's first year? On your opinion, what is reasonable, what is a good start, and what is a bad start?
I appreciate your replies.

I think if you can brake even your first year that wood be a great start. If you have no prior insurance experience I think $250k is good. Less than $200k sucks. Over $300K is great. You need to be at a million in 4 years. It also depends what area you are in. If you have low overhead you can get away with less.

Thanks Porter. It sounds good!
Any other opinion? Everyone agree?

That would be a great start. Sorry for the spelling.

i project 200K groos first year, 1 mil in 3 years and 3 mil in 5 years

InsAgentSF, thanks a lot for your reply. How many producers do you have in your agency?

California has just got to be a whole different world... You're gonna write a quarter million dollars just outta the gate if you have no experience? Are you guys' policies rate-driven???

92builder, NO these guys can not write that kind of primium for several years, or longer. Its just as tough in CA as any where in the USA. CA is very very tight. I am refering too BOP type policies, not large accounts....
I think coming out of the gates with all history you need in this business understanding AMS and underwriting and the market placement and classes, your lucky to break 200,000. Put your ego aside this is a hard business and very rewarding.

You're talking 200K in PREMIUM, right? So what'll you make off that? 10%? 12%? 6%???

Also, can we all decide on the difference in terms between "broker" and "agent"?

You're talking 200K in PREMIUM, right? So what'll you make off that? 10%? 12%? 6%???
I am talking about 200K in Revenue, which is Commissions + BF. In some cases BF are higher then commissions

Agent is a insurance professional who work for an exclusive company and sells their product only

broker works with multiple companies

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Okay, I don't know what "BF" is, but that's an awful big # for a new guy, isn't it?

As far as these definitions go, here in the mid-west, a "broker" would be a person like a chris-leef or mj kelly that can offer program policies. An "agent" would be any licensed individual who can sell insurance, hence the name "independent insurance agent", regardless if that person is captive or not; my last agency had three "agents" in it, including the "principal". In this sense also, all three of us were also "producers".

Also, I just checked my licenses, and I'm a non-resident "producer" in Oklahoma, and an "insurance agent" in Kansas. Go figger...

Porter, are you referring to premium or comissions?

InsAgentSF, I was asking about Written Premium, not comissions. Can you please tell me what is your first year goal for Written Premium?

Thanks

I was talking written premium. Also, I assume you are a agency owner working alone. You are the only producer.

Porter, thanks for your reply. Yes, it's a one producer agency.

Now, question arises, how is it possible that Porter's good start for the first year is $250K in premium, and InsAgentSF's good start is $200K in commissions? The difference is huge, isn't it?