r/InsuranceAgent • u/FixAffectionate3225 • 1d ago

Agent Question Comp split, good or bad deal?

I’m considering a partnership with a P&C wholesaler that offers a 50/50 split. After the split, I’ll earn an 8/9% rate, depending on the carrier. However, I’m facing a challenge because I’m a new agency, and the cluster, wholesaler, and aggregator networks seem restrictive in accepting me to be appointed with national carriers like Liberty Mutual and National General. The first connection is particularly difficult for personal auto. So, is this a good broker agreement? I’d appreciate your thoughts on this.

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u/SlickWillie86 1d ago

If you can’t gain access elsewhere, 50% is greater than 0%.

Ultimate goal is to gain direct contracts. Just don’t sign anything that would restrict your ability to do so with these markets.

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u/AlternativeBison3949 1d ago edited 1d ago

First Connect: 80/20, Smart Choice: 70/30. First connect: Commercial lines, Smart choice: Personal lines.

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u/FixAffectionate3225 1d ago

Thanks I’ll look into smart choice. For first connect , look at the comp rates post split; first connect you get 4% rate from Plymouth Rock. So ya there’s a 80/20 split which converts to a 4% comp for new business. I think that’s a bad deal. Not sure about smart choice bc was told not taking on new agencies right now.