Wholesale brokers primarily generate their income through commissions earned on the insurance policies they place on behalf of retail agents or clients. Typically, insurance companies pay these brokers a predetermined percentage of the policy premium, known as a gross commission, which serves as their compensation for sourcing and underwriting the policies. This commission is often negotiated and can vary depending on the type of insurance, the volume of business, and the agreement between the insurer and the broker. Additionally, some wholesale brokers may earn fees for specialized services such as risk assessment, policy structuring, or consulting. Overall, their revenue model is centered around earning commissions from insurers for successfully placing insurance coverage, making their income directly tied to the volume and profitability of the policies they facilitate.