How Much Bonus Commission is Enough? What Else is Your MGA Doing to Support You?

When you are thinking about switching to working with an MGA, calculating your bonus commission is an important consideration. Knowing what your first year commission is going to look like is crucial. However, it isn’t the only thing that is important – and there are several other things to investigate before making the decision to switch.

Most MGA’s employ a relatively standard format for calculating bonus commission. As an advisor you need to get paid, and you want to make sure that you are receiving fair compensation for all of your hard work. After all, you are the one that put all of the time and energy into finding those clients that have put their trust in your ability to provide them the best services possible.

Although the percentages of the first year’s premium paid to you is what ultimately puts money in your pocket, knowing when the bonus commission should be higher or lower can be tricky. Although your bonus commission is an important consideration, it can’t be the only one.

If the MGA that you are working with gives you the backing necessary to make your job easier, providing incentives and training to allow you to be the best at your job, a small variation in your first year commission may not make a big difference at all. Garnering a substantial number of new clients each year thanks to the support provided by a good MGA is what will make your bottom line grow.

As mentioned, although the bonus on your first year commission is an important consideration, it can’t be the only one. If you end up working with an MGA who ultimately doesn’t provide the support and resources that are necessary for you to thrive, your bonus commission really is not going to matter. If you can’t get new clients, making money will be impossible. Having the support of a good MGA means a lot more than just the bonus commission.

Working with an MGA that allows you access to a plethora of different companies will give you the chance to generate the best possible rates and plans for your clients. Since clients nowadays can easily find out different companies’ rates, it is important to be able to go through the various companies to find the best deal. Since your bonus commission is based on new clients only, being able to find the most attractive deal is essential.

Finding the right MGA can mean more money in your pocket, and not just based solely on your bonus commission. If you are working with an MGA that provides you with support and motivation that allows you to be the best that you can be, you will have the opportunity to make way more money. Using your skills as an advisor while still being able to access all of the different resources being offered by your MGA is what, in the end, makes all of the difference.

For more information about switching to an MGA or to find out about bonus commission rates, please contact Gary Mandel at Independent Financial Concepts Group at by calling 416-849-1653 or visit www.joinifcg.com