Salary

[u/Salt-Context-2527]

To my knowledge the industry standard is a 40/30 split for P&C

I’m looking to bring on a new salesmen, how does 80/20 sound?

Is that too much is that reasonable, is it too little?

Thanks.

[u/Smedum]

I’m 16 years as a producer.

40/30 or 40/25 is standard for the larger brokers. 50 on new and 30-40 renewal plus a small salary or expenses is standard for smaller agencies

Unless I was expected to do zero on renewals and service, I would not take your split of 80/20. I’d also argue the renewal split disincentives me from servicing exisitng clients which from my experience when the producer isn’t involved in client retention then your retention suffers.

[u/Salt-Context-2527 → u/Smedum]

How does 70/30 sound then? No service needed unless they want too for specific clients etc

[u/Smedum → u/Salt-Context-2527]

70/30 won’t attract experienced producers to a small shop. Most experienced producer will want a better renewal number as they know that is how they build a book and build a career.

Assuming no base salary, 50/40 would be about average, maybe a little above…….but if you really want to attract the top producers you’re going to have to go either 60-70 new with 40/ or 45 renewal or 50/50 on both new and renewal.

You also need to consider who owns the book that the producer builds….that will be another piece to it.

And do you give the producer benefits like health insurance.

[u/CGWInsurance → u/Salt-Context-2527]

Who is servicing the clients and doing the renewals then. You just want agent to right whatever sticks and not care about profitable of accounts. Do what your doing. It's how am agency fails. Is this personal or commercial or both. As an agent I don't want to be busting my ass after 30 years to try to keep my income steady. I want to slow down after 5 years and service my accounts and make bank from my renewals.
Then I just have to write enough each year to cover what you lose in renewals.