Brokers AllianceStreet level, overrides, and what a contract actually pays.
Every recruiter in this industry leads with a number. This page explains where that number comes from: what street level really means, how override spreads move through a hierarchy, and why a bigger stated contract can pay less than a transparent one. When you are done, the criteria table picks up where this page ends.
This page is written for licensed producers, advisors and agency principals who are weighing contract levels, or wondering what the level they already hold really pays. If the vocabulary itself is new, start with our plain-language guide to IMO vs FMO vs BGA vs MGA and come back.
Street level is the baseline commission rate a carrier publishes for a producer writing under a standard agent contract. An override is the spread between two contract levels in the same carrier hierarchy: the carrier pays each level its contracted rate, and every layer above the writing agent earns the difference between its level and the level below it. That is the whole machine. Commission rates are set by the carrier, product by product, and paid down a chain that usually runs carrier, then IMO or FMO, then sometimes an agency, then the writing agent. None of it is secret, which is why you should distrust any shop that treats its grid like it is.
Brokers Alliance sits in that chain. We are an IMO, FMO and BGA, and we are paid the way every upline is paid: standard carrier commissions and overrides, funded by the carrier. What we can offer beyond that is visibility. Our producers see carrier compensation grids side by side in MyAdvisorGrids before they commit a case, and there is no fee to contract or to use the software. The rest of this page is education you can take anywhere, whether or not you ever contract with us.
Three words that decide your paycheck.
Street level, override, hierarchy. Recruiters use them loosely. Carriers define them precisely. The precise versions are the ones that pay you.
Street level
The published baseline for a standard producer contract with a given carrier and product line. It is a starting point, not a ceiling and not a favor. Levels above street exist for producers and agencies that bring volume or take on distribution work, and every level is defined by the carrier, not by the recruiter quoting it.
The override
The spread between two contract levels. When an upline holds a higher level than you, the carrier pays the upline the difference on your production. An override is not deducted from your contracted rate; it is what the carrier pays for distribution work. The honest question is whether the work above you is worth the spread above you.
The hierarchy
The chain a case travels: carrier, IMO or FMO, sometimes an agency or MGA in between, then you. Every name in that chain holds a contract level, and each layer is paid the gap to the layer below. Who sits above you, and what they do all day, is the substance of the deal.
One case, paid down a chain.
Here is who touches the compensation on a case, and why. There are no rates on this table, on purpose: rates vary by carrier, product and contract, and a specific figure on a public page would be a marketing number, not your number. Your number lives on a grid, and you should see the grid before you sign.
| Layer | Who sits there | How the layer is paid | What to ask |
|---|---|---|---|
| Carrier | The insurance company that files the product, sets every commission rate, and funds the entire hierarchy. | Premium from the policyholder, per its filed product pricing. | Which carriers is my contract actually with, and at what level for each? |
| IMO / FMO / BGA | The wholesale distribution layer holding the carrier contracts: contracting, case management, case design, technology, marketing support. | The override spread between its carrier contract level and the levels it grants downline. | Show me the grid in writing. What do I get for the spread above me? |
| Agency / MGA (sometimes) | An intermediate layer between the IMO and the writing agent. Some producers contract direct with the IMO; some sit under an agency. | The override spread between its level and the writing agent's level. | Is this layer doing work for me, or just standing in the money path? |
| Writing agent | The licensed producer who owns the client relationship and does the selling. | The commission at his or her contract level, plus renewals as the contract vests them. | What exactly is my level, my renewal schedule, and my vesting, in writing? |
Two things on that table decide almost everything. Every rate is carrier-defined, and the client's premium for a filed product does not change based on the hierarchy behind the agent. And every layer's income is a spread, so every layer between you and the carrier should be able to name the work that earns it. When a layer cannot name its work, the spread is rent.
Why a higher stated number can pay you less.
A contract level is one input to your income. These are the others, where the real difference between shops lives.
Fees reverse the spread
A shop that quotes a generous level and then charges monthly platform fees, technology fees or marketing fees has moved money from one pocket of the deal to the other. Net it out over a year of your actual production before you compare.
Renewals and vesting
First-year commission is the loud number. Renewals are the quiet one that builds a book worth owning. Who owns your renewals, on what schedule, and what vests to you if you leave belongs in writing before you sign, not after.
Placement is the multiplier
A case that never issues pays nothing at any contract level. Case design help, underwriting advocacy and carrier breadth decide how much of your pipeline becomes paid business, and none of that appears on a comp grid.
Chargebacks and persistency
Business that lapses early comes back out of your pocket. Support that helps you put the right product on the right client is compensation protection, even though it never shows up as a rate.
What you buy separately
Quoting tools, a CRM, case status visibility, marketing. If the level is high but everything around it is sold separately, price the whole stack before you compare.
The exit price
Release policy is part of compensation, because a contract you cannot move discounts everything it pays. Ask how releases are handled before you join, and get the answer in writing. We wrote a full guide to getting released from an IMO.
The questions to ask any upline.
Take these to any IMO, FMO or BGA, including us. A shop that answers them plainly and in writing respects you. A shop that answers with a recruiting pitch just answered a different question.
- Show me the full commission grid for the carriers I will write, in writing, before I contract.
- What does it cost to be here? Contracting fees, monthly charges, technology fees, marketing fees, anything.
- What do I get for the spread above me? Case design, case management, underwriting advocacy, training, technology. Name it.
- Who owns my renewals, on what schedule, and how do they vest if I leave?
- What is your release policy, and will you put it in writing today?
- Are there production minimums tied to my level, and what happens to the level if I miss them?
- Which carrier and product does the quoted level apply to? A level quoted without a carrier and product attached is a slogan, not an offer.
Our answer, in the open.
Brokers Alliance is a family owned IMO, FMO and BGA in Fountain Hills, Arizona. Joe Racich founded it in 1982. His son David Racich has owned and led it since 2009. Here is how we answer the questions above.
The grid is visible
MyAdvisorGrids, built by our in-house development team, lays carrier compensation grids side by side so you can compare before you commit a case. We would rather you see the number than take our word about the number.
No fees to contract
There is no fee to contract or work with Brokers Alliance, and MyAdvisorCloud is provided to contracted producers at no monthly charge. We are compensated through standard carrier commissions and overrides, the same mechanism this page just explained.
Built for independents
We are a wholesale distribution partner for independent agents and advisors. Not a lead vendor, not a captive agency, no scripts-and-leads retail program. You run your own practice; we supply contracts, case design, technology and marketing support.
The scale behind that answer, measured from our own case-management warehouse: more than 41,000 carrier appointments processed in the past year, and more than 200 distinct carrier relationships tracked in our appointment system. Case status, requirements and appointment progress are tracked digitally and reviewed daily by a dedicated case-management team. And if you are weighing whether we fit the way you work, we keep an honest fit check that tells some producers we are not their answer.
What producers ask about comp and overrides.
Answered straight. Bring the rest to (866) 872-9394.
What does street level commission mean in insurance?
Street level is the baseline commission rate a carrier publishes for a producer on a standard agent contract, before any overrides. It varies by carrier and by product line, and it is the reference point that higher contract levels are negotiated from. If someone quotes you a level without naming the carrier and product it applies to, ask for the grid.
What is an override in insurance commissions?
An override is the spread between two contract levels in the same hierarchy. The carrier pays each layer its contracted rate on the writing agent's production, so the layer above you earns the difference between its level and yours. The carrier funds it as the cost of distribution, and the working question for a producer is whether the layer above actually earns it.
Do overrides come out of my commission?
Not mechanically. Your contract sets your rate, and the client's premium for a given filed product does not change with the hierarchy behind it. The real question hides one layer deeper: what level were you offered in the first place, and what do you receive for the spread above you? A shop doing real work for its spread can be a better deal than a shop quoting a higher level and doing nothing.
Is a higher commission level always the better deal?
No. Net income is the level, minus any fees, minus everything you have to buy separately, adjusted for how much of your pipeline actually places and for what happens to your renewals. A higher stated level with fees attached, thin support and a hard exit can pay less than a transparent one.
How does Brokers Alliance get paid?
The same way every IMO, FMO and BGA is paid: standard carrier commissions and overrides, funded by the carrier. There is no fee to contract or work with us, and MyAdvisorCloud comes at no monthly charge. Family owned since 1982, owner-led by David Racich since 2009, based in Fountain Hills, Arizona.
See the grid before you sign. Ours included.
Get contracted with Brokers Alliance and compare carrier compensation side by side in MyAdvisorGrids, with case design, case management and in-house technology behind every case. No fee to contract. Family owned since 1982, Fountain Hills, Arizona.
Get contractedNot sure we fit? Take the honest fit check. or call (866) 872-9394