Where the money starts
The carrier pays a percentage of written premium to the agency of record. Personal auto and home usually fall between 10% and 15%. Commercial lines run higher. Life pays a large first-year percentage and small trailing renewals — a completely different shape.
Everything an agent hears about '75% commission' or '80/20' refers to how the agency divides that carrier payment, not to a percentage of premium.
New business vs renewal — the split that matters
Many agreements advertise a high new-business split and quietly step down renewals. A 70% new / 40% renewal structure looks generous in month one and punishing in year three, when most of your revenue is renewal-based.
Ask directly: does my renewal split equal my new-business split, and is it guaranteed in writing for the life of the policy? If the answer involves conditions, production minimums, or discretion, treat the renewal number as unreliable.
Contingency and profit sharing
Carriers pay bonuses based on volume and loss ratio. In most franchise and network agreements, the parent keeps all of it. In some exchange models it is shared. It is not usually the difference between models, but it is worth knowing where it goes.
Clauses that quietly cut your income
Read for chargebacks on early cancellation, technology fees deducted before the split, marketing or lead fees, minimum production requirements that reduce your split if missed, and non-compete or book-reversion language on termination.
- Chargeback window on cancelled policies
- Technology, CRM or lead fees deducted pre-split
- Production minimums tied to split tiers
- Book ownership and non-solicit language on exit