As the robust agency consolidation wave continues, the total number of agencies is dropping, and those that remain are getting larger — in some cases, much, much larger. As an agency grows, through acquisition or organically, producers typically see their production increase, while their average payout ratio falls.

Warning: Past performance is no guarantee of future results! The average annual sales production of commercial lines producers (commission) in the U.S., according to Insurance Producer Profile, published by The National Alliance Research Academy (5th edition), is $323,733. The median figure is $180,000. These numbers include both new business and renewal business on an annual basis. About 20% of producers earn over $500,000 per year, while 27% earn less than $100,000. The largest percentage (29%) earn between $100,000 and $200,000. Since the huge earners and the lowest earners tend to tip the scales in a substantial way, the median production figure of $180,000 is the number that holds the most weight for me.