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You can do better than profit-sharing

Profit-sharing is a beautiful thing typically a no-risk, upside-only bonus paying up to 5% of annual premium written. However, there is a way to earn a much larger bonus.

By Richard Suter | Updated on May 07, 2015

For most agencies, revenue consists of commission and company profit-sharing. Profit-sharing is a beautiful thing — typically a no-risk, upside-only bonus paying up to five percent of annual premium written. However, there is a way to earn a much larger bonus — one that is not capped at a certain percentage of premium. This is possible through an agency captive.

A captive gives an agent access to forms of revenue typically enjoyed exclusively by carriers: underwriting profit and investment income. These arrangements are not without risk, but for agents with the proper profile, a captive facility can offer a dramatic enhancement to the agency’s revenue stream and value proposition.

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