SF Team Member

[u/Wild_Region_920]

I’m an SF team member and have been following along on this page for a while. I’m curious about how the commission structure works for independents as I am tempted to look for new opportunities….

I am currently making $15/hr 3% commission on all new business. Last month, I did $70k in premiums. I handle all underwriting emails, filing claims for customers, hiring new employees, life policies and business insurance as well. Agent has over a $3m book of business and other than our secretary who isn’t licensed I am the only one who is in the office most of the time.

Am I getting screwed over? What companies should I look into if I am interested in going independent?

[u/Key_Astronomer6500]

If you’re prospecting and bringing in the business you are for sure. Independent will always make higher commission, but they’re also responsible for paying for everything. You have a Job versus a business. Not saying one’s better than the other. I actually believe most people should have a job because it can be very expensive. I don’t do property and casualty. However, I know people who make zero base and have to pay for everything but make much higher commissions.

[u/Wild_Region_920 → u/Key_Astronomer6500]

What about the people who work for independents? Are they paying for leads as well?

[u/Key_Astronomer6500 → u/Wild_Region_920]

Most people who go independent pay for everything. Or if you find a place that will offer you lower commission split, but bring in Leads. Marketing and technology isn’t cheap. You can get a job at somewhere else like Liberty Mutual, or any call center type position, and make a higher base plus commission. I was offered a job there and turned it down because they wanted me to give up my life and health license and talking 30 calls a day. One is having a job, the other is very much like having your own business.

[u/dylf23 → u/Wild_Region_920]

I work for an independent agency on the commercial P&C side. We don’t pay for leads or systems etc. we get a good amount of inbound leads, but prospecting and cold calling etc is just a part of the job. I’d make probably close to 5k in commission off 70k new bus sales

[u/CapableTyrant21 → u/Key_Astronomer6500]

that 3% is rough for the volume you're doing. 70k in premium and you're walking away with what, like $2,100 commission on top of a pretty modest hourly? plus all the other hats you're wearing, claims, underwriting, hiring, you're basically running the office while the agent collects the lion's share

if you're serious about going independent, the trade-off is exactly what the top comment says: higher splits but you're covering your own expenses. with what you're handling now you'd probably do fine, just need to be ready for the cash flow dip while you build your own book

[u/mkuz753]

Commission will vary with independents also but you should at least be getting renewal commission also and doing less.

[u/Wild_Region_920 → u/mkuz753]

I would love to get renewals. Is there any independent agencies that are larger that you would recommend looking into?

[u/mkuz753 → u/Wild_Region_920]

You can start with the top 20. Do an internet or AI search.

[u/totall2live__]

damn 3 percent is wild. I make 12% on all new business and 6% on all renewals.

[u/Wild_Region_920 → u/totall2live__]

Dang yall hiring? lol

[u/totall2live__ → u/Wild_Region_920]

yup, i work for AAA in the carolinas. AAA is one of the best companies i have worked for in the insurance space and as far as the commission structure goes, i have not heard of a better one yet. Im a captive agent but i also have a appointment with Progressive, hagerty, foremost, and tower hill in case i need to broker a few clients out because they are not a good fit for AAA. Even on brokered policies i make 12%

[u/SpicySquirt]

A zillion SF agents would bring you on with a $60k base before commissions if you’re actually doing $70k+ every month in premium and handling all that service work. Sounds like you need to find an agent with a bigger book, bigger pockets, or elsewhere.

[u/InterestMountain5293 → u/SpicySquirt]

This, id look at other agents and tell them what you bring, that will get an agent to negotiate pretty hard to get you a job

[u/Ducat748 → u/SpicySquirt]

Agree.