The Representor, Survey Spotlight, Fall 2011 Issue

Recapping the results of ERA's most recent member surveys ERA's latest survey of members – which continues the series that was launched in November 2010 – covered average commission rates and rate trends affecting their rep firms since 2009. A total of 181 rep firms participated and provided data that ERA will use in coming years. The goal is to create comparative information that members will be able to use to measure their individual company data against their peers and prior years. Following are the highlights of the survey results.

Average commission rates in 2010
Based on gross commission income, reps reported the following average commission rates paid to their firms in 2010:

	a slim majority (51 percent) stated their average rates ranged between 4 and 6 percent; about 40 percent experienced average rates of 3.99 percent or below; only 3 percent reported average rates of 6 to 6.99 percent; and just 6 percent said their rates were 7 percent or higher.

2010 commission rates compared to 2009
Asked to compare their 2010 average commission rates to 2009:

	the majority (56 percent) reported their firm's rates were about the same; 20 percent experienced a commission rate decrease of less than 1 percent; 12 percent stated they had a decrease ranging from 1 to 2 percent or more; 8 percent reported increased rates of less than 1 percent; and 3 percent reported rate increases from 1 to 2 percent or more.

Projected 2011 commission rates compared to 2010
In response to the survey question regarding how they project their 2011 average commission rates will compare to 2010:

	a significant majority (64 percent) predicted their rates will remain about the same; 16 percent expect their rates will drop by less than 1 percent; 7 percent foresee rate decreases of more than 1 percent; 12 percent anticipate increases of 1 percent or less; and 2 percent are looking forward to rates that they expect will increase by 1 percent or more.

In analyzing these results, there may or may not be significance in the fact that the sizeable majority of responding reps (78 percent) reported that their firms had gross commission income in 2010 of less than $1.5 million. The remaining 22 percent reported income of $1.5 million to more than $3 million. The firms reporting both the lowest and highest commission rates ranged across all revenue categories.

ERA members receive much more detailed reports of every survey, including cross tabulations so they can analyze results by size of firm or other pertinent criteria. Members are urged to check the results of all surveys to date on the password-protected pages of the ERA Web site. Click here and have your ERA ID ready!

 

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