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TDsngumbo
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Member since Oct 2011
13534 posts

Do sales producers at independent insurance agencies typically earn residuals of some type
Thanks for the answers, guys. I appreciate all your input.
This post was edited on 1/11 at 10:59 am


Thib-a-doe Tiger
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Member since Nov 2012
28017 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
I would imagine they get a cut of it, with the larger cut going to agency owner


TDsngumbo
USA Fan
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Member since Oct 2011
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re: Do sales producers at independent insurance agencies typically earn residuals of some type
That's what I believe as well but I'm just assuming here. I have no specific knowledge.


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nugget
LSU Fan
Member since Dec 2009
7389 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
Typical for industry in LA is around 50% of new business and 25% renewals. Would be a miserable job if you didn't get renewals. And also make sure you get a portion of your "agency fee". That is where you make your money.
This post was edited on 1/9 at 11:08 am


TDsngumbo
USA Fan
The Jolly Rancher
Member since Oct 2011
13534 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

Typical for industry in LA is around 50% of new business and 25% renewals. Would be a miserable job if you didn't get renewals. And also make sure you get a portion of your "agency fee". That is where you make your money.


That seems insanely high for a producer.


nugget
LSU Fan
Member since Dec 2009
7389 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

That seems insanely high for a producer.


That's the % of the commission, not the premium. If you write a $1,000 policy, there is say 15% commission on it. You would get $75 and the agency would get $75 the first year. The second year, you would get $37.50 and the agency would get $112.50.

You get 50% of the 15%.


TDsngumbo
USA Fan
The Jolly Rancher
Member since Oct 2011
13534 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

You get 50% of the 15%.

Okay I misunderstood. That makes much more sense. Is that really the standard in LA? What is the standard agency fee? And are you in the business?
This post was edited on 1/9 at 11:33 am


Chad504boy
New Orleans Saints Fan
Member since Feb 2005
129739 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
usual standard from my experience is 50% new 50% renewals. That's not to say its always this way and lots of agencies vary. also depends how you're obtaining your new business. Is this agency hand feeding business to write? are you on your own with marketing and cold calling and obtaining your own customers. Not all agencies have business just shaking off the trees that they are just handing over free business to write for them that they couldn't already handle.


TDsngumbo
USA Fan
The Jolly Rancher
Member since Oct 2011
13534 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

Is this agency hand feeding business to write?

They're an existing agency that I would be working for and I assume they have some sort of lead vendors on hand that they work with. I'll get into that more during the interviews but I would not be alone and on my own. Not that I know of, anyway. That could be good and bad I suppose.


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nugget
LSU Fan
Member since Dec 2009
7389 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

Is that really the standard in LA?

Close. Some agencies pay higher but require you to help pay for CSRs. If there is the ability to negotiate, try to do it on the renewals. That is how you can make real income.

quote:

What is the standard agency fee?

Completely depends. Depends on how much work the policy takes and depends on the premium. On your standard 8-10k gas station, I would always go for $300-400. Just a mom and pop $600 lawn business, I'd put $50. I've heard of people putting $10,000 agency fees on trucking companies and such.

quote:

And are you in the business?


I owned an agency at one point then sold it.



TDsngumbo
USA Fan
The Jolly Rancher
Member since Oct 2011
13534 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
Thanks nugget and chad. Anyone else with experience please chime in. I'd love to get more thoughts.


MsState of mind
Mississippi St. Fan
State of Denial
Member since Aug 2013
1684 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
I negotiated my split down on new business to get it higher on renewals. I am currently in the process of buying into my agency


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iknowmorethanyou
LSU Fan
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Member since Jul 2007
6218 posts
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re: Do sales producers at independent insurance agencies typically earn residuals of some type
My agents get their life, disability, and annuity renewals...no experience with P/C. Good luck.


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GeorgeQGlass
Texas Fan
Austin
Member since Oct 2017
239 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
Just curious as to why you want to switch from captive to independent?

My experience in seeing people make the transition from captive to independent doesn't go so well. I've seen more success with the opposite (independent to captive).

There's so much more to know; more coverages, more forms, all sorts of different carriers. It tends to be a shock at the increase of information.

In speaking with many underwriters whom I know that have past experience on the agnecy side, all have said the same thing - they didn't particularly enjoy the agency side and revert to carrier side just because they can focus on one product, two at most.

I do know some Boulder Captives focus on Auto, GL, and Comp, only.

Just curious why you're wanting to leave the captive setting?


Buck Dancer
LSU Fan
New Orleans
Member since Jan 2008
3646 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
I’m a P&C agent at a NOLA agency for the past 15 years. 50% on new business, 45% on renewals, 50% of agency fees and have to pay 20% of my CSR’s salary.


mule74
LSU Fan
Houston, TX
Member since Nov 2004
8555 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

I’m a P&C agent at a NOLA agency for the past 15 years. 50% on new business, 45% on renewals, 50% of agency fees and have to pay 20% of my CSR’s salary


That's pretty good. That's much better than what guys are getting at the bigger shops here in Houston.

I see a lot of 45/30 or even 40/25 splits on new and renewal.

Then again there is a lot more business over here.


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Tiger Prawn
LSU Fan
Member since Dec 2016
10972 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
We pay 50% new business and 50% renewals but producers are responsible for finding their own referral sources and leads and they handle their own service work.

ETA: we don’t charge agency fees
This post was edited on 1/10 at 4:31 pm


TDsngumbo
USA Fan
The Jolly Rancher
Member since Oct 2011
13534 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
quote:

Tiger Prawn

Where are you? Y'all hiring?


fallguy_1978
LSU Fan
Half mile from St George
Member since Feb 2018
10644 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
My wife works in insurance. She gets a percentage. I don't know what it is off the top of my head.


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Tiger Prawn
LSU Fan
Member since Dec 2016
10972 posts

re: Do sales producers at independent insurance agencies typically earn residuals of some type
NOLA

Whats your experience in? We do P&C, mostly personal lines but have a producer who does light commercial.


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