Commision for independent junior partner
Just curious what is a fair commission for a junior partner at an independent firm.
As a junior partner with limited experience inside the industry it's in my best interest that the senior partner get a chunk of my commissions. It would seem to me the more income potential for the senior manager the more they would be open to guide and assist the junior.
With that being said and the fact that senior partner is taking junior under their wing what is a fair compensation %? I am thinking that the indi firm takes 20% so the junior/senior should be a 40/40 split.
Anyone have an experience with a bonus based plan for junior partner? Cheers to success!
Anyone have any knowledge of this situation.
It probably seems like I have been here for a while.. Which I have, but its better to get into this industry with the right mentor then rush with the wrong.
I thank all of you for your support and advice. Soon I will join your ranks, but right now I am an apprentice bull!
Exec, by "junior partner" do you mean you're a rep in an I/C branch, you'll be handling just your own book, and you're wondering about the split between you & the branch manager/owner of the I/C branch??
If so, from what I've seen for an experienced rep with a reasonable book usually the manager typically wants 10-15% of a rep's gross to compensate them for time/liability of supervision. For a large producing rep they may go down to around a 5% override either on total gross, or take the 10-15% up to "X" production & drop it to 5% above that.
For a rep with little production who's getting started the manager's override might be around 25%, on the assumption that they're spending more time with you mentoring, etc.. Assuming 20% to the b/d ,that leaves an effective 55% payout to the rep. For the newer rep under this type of structure there's typically a grid that's negotiated. For example -- something like maybe a 25% override to the manager until $50k of production, then 20% or so until $100k, then falling to whatever their normal is for established reps (say 10-15%) once they're above $100k -- essentially a system to motivate the rep to grow as fast as possible.
If the manager is providing the office, etc. at no cost to the rep (i.e., instead of the rep being separately allocated some portion of the office overhead) then those numbers to the manager above will be higher to cover the overhead.
That's just an idea of a possible structure, and you'l see all sorts of variations. Some structure the override as a percentage of branch net payout (i.e., after the b/d's share). Others just set a rep payout %age similar to a traditional employee structure. But, from my experience I believe the numbers suggested above are in the general ball park.
Thanks Duke your break down is exactly what I was trying to explain.. Those numbers sound fair and reasonable. Have a nice day.