Does this sound like my salary is actually a draw/advance?

[Bunny95]

Hi. I'm very new to the insurance world and just got my P and C license. And I got a job offer from Farmers...from an independent agency that I'll be working under.

But the manager is not willing to give me an actual offer letter. She keeps pushing me to accept the offer and keeps talking about how high the commission is. She also wants me to pay for the background check (is this common?).

But since my base salary is $14/hr, why would she also give me 30% commission on new accounts and 20% on renewals?

That just seems like a lot of commission plus a base salary, since I have zero experience.

Is it possible that my salary is actually a draw on future commissions and that's why she won't give me a written offer letter?

She also briefly mentioned me possibly signing future contracts to hit quotas...that would be to get advances on commission too right?

I don't want any advances or any potential debt...not at all.

 

[myfakename]

Just to be sure you understand its likely 30% and 20% of what the agent is paid. So 20-30% of the 10-15% they make.

 

[tikibarrister]

I would not take a job where I didn't understand my compensation. Or where it wasn't documented.

What's to prevent her from saying six months from now "30% and 20%? No, I told you it was 15% and 10%" and what proof have you?

Is that 30% immediately vested or is it earned as-paid? (i.e., what if client cancels after 2 months?)

And as @myfakename pointed out, it is assuredly 30% of the commission the agency earns, not 30% of the premium.

Never worked for Farmer's but my understanding is that in the captive world, it's not unusual to pay a salary + commission. Of course, if your production is weak they will conclude you're not worth the salary and that is fair. Again, I'd want to know going in what expectations are.

Cloaking all this in mystery really serves no one's purpose. What's the big deal about sharing the comp plan? You make money, they make money - it's not rocket science and I can see no reason to not be clear and documented.

 

[fed up]

chances are that you will not make more than your hourly wage until you reach a certain level of sales quota and then the percentage of the business you write will kick in. Most agents are looking for somewhere north of 20,000 in new business before a commission is paid. Ask to see her numbers for new business for the past year month by month. Make sure that there isn't a kicker in there that you have to also produce 1-2 life products per month because that is where you get the knockout blow. You bind 30K in new business but no new life and you get nothing but your $14/hr

 

[adjusterjack]

My 2 cents worth:

Never take an agent job without a written contract.

Never sign a contract without thoroughly reading and understanding it and keeping a copy.

If there is something in a contract that you don't understand, ask for a written explanation or a modification of the contract to make it understandable.

If a prospective employer balks because you are smart enough to ask questions, then walk away and be happy that you have dodged a bullet.

My advice comes from 35 years experience in the insurance business.

 

[marindependent]

But the manager is not willing to give me an actual offer letter. She keeps pushing me to accept the offer

How can you accept an Offer that is not there? What is it to accept, just a blank piece of paper?

 

[Markthebroker]

But the manager is not willing to give me an actual offer letter.

Red flag #1.

She keeps pushing me to accept the offer and keeps talking about how high the commission is.

Red flag #2.

She also wants me to pay for the background check

Red flag #3.

That just seems like a lot of commission plus a base salary, since I have zero experience.

Red flag #4.

Is it possible that my salary is actually a draw on future commissions and that's why she won't give me a written offer letter?

Frankly, it doesn't really matter. If she can't make it clear and won't give you anything in writing, the offer is as useless as hen sh*t on a pump handle.

 

[adjusterjack]

as useless as hen sh*t on a pump handle.

How did the hen get up on the pump handle?

City boy wants to know.

 

[Markthebroker]

How did the hen get up on the pump handle?

City boy wants to know.

The hen got a too-good-to-be-true job offer from Farmers to get up on the pump handle.

 

[Bunny95]

Thanks for all the advice. There's a lot of really useful information. Most likely, I'll turn the offer down. If I can't get a clear answer or the commission terms written out, it's not worth it.