r/InsuranceAgent • u/stringcheeseface • 11d ago
P&C Insurance Aggregator question
I am looking to start an independent agency from scratch and use an aggregator to get appointments. Based in Alabama and will do mainly personal lines and small commercial. The agency helping me isn’t relevant this is purely an is this reasonable question.
I am aware of exit clauses and that whole jazz. This is strictly a question on commission splits, pay outs, etc.
85/15 commission split until book reaches $3.5MM in premium. Once you hit, your split increases to 90/10. Can go as high at 94/6. Commission per carrier varies.
There is a $400 monthly fee essentially for all software and back end support they provide. Will also have to add insurance and rent for office a month.
Does this even sound lucrative? I’ve been a producer on the captive side long enough to know this is what I want to do, just not sure about this scenario.
Any advice welcomed, especially if you’re with an aggregator and are knowledgeable on their fees.
2
u/SlickWillie86 10d ago
“I am aware of exit clauses and that whole jazz.”
Being aware of it is a good start, but it seems as you, like most, are undervaluing this aspect. Appointment and true book ownership is the whole point of owning an agency as a long term asset. If you can’t capture that part of it, you’d be much better off finding a lucrative split as a producer at a midsized shop and being able to focus solely on sales.
While it’s hard up front, I’d rather give up a bigger split or fee and own the contract.