I nearly revived the zombie thread, but decided to link as that is considered better etiquette on most of the boards I am active in.
This thread was from 2010 and I wondered if people still feel the same. There is a range of answers in that thread, but generally it seems to run 50+/50+ if the agent takes care of the business themself, the more often advertised 45/35 or 35/25 (new/renewal) if the agent needs hand holding or CSR support or their paperwork needs to be double checked for errors.
In my experience the 50/50 agent is giving out cards with a cell number where they can be reached 24/7 365 and is expecting midnight calls from a young client who just had their first auto accident and aiming for 80%+ retention. The 35/25 agent turns it over to a CSR the day it is written and may never communicate with the client again.
This is also an issue I am looking at in designing compensation. I am not a lawyer, but my understanding is the FLSA has an exemption for "outside sales" which would cover any successful sub-producer. Has anyone run into these issues or really talked it out with a lawyer? Are your sub-producers treated as sub-contractor or employees? In my previous life all the producers were principals o the issue did not come up, although that also probably wasn't a perfectly clear set-up as some had no management responsibilities. It would seem the sub-producer position would fail both he economic realities and common law test of an IC. Especially with a non-compete agreement.I wouldn't want to be audited by the IRS on that producer who is making 400k a year from your firm. If he derives the majority or sole source of income from you, and he's not a dba, LLC or S-Corp, the IRS would construe that person as an "employee"