Would You Accept this Offer? Newbie

[Newview]

Hi,
I passed the P&C producer exam and now am looking for an office to gain some experience from and go from there. I have no sales experience. I have a prospect of being a producer for a large company, with a 20 yrs. plus agent who has 2 offices of his own.

the offer looks like this:

Monthly Base is $1000.

Commission Monthly:
2.5% on up to 5K
5% on 5K plus, AND 1 life appointment set
7% on 15K plus, AND 1 life appointment set

Bonus monthly:
10k=$200
15K=$350
20K=$750
25K=$1000

I was told I should expect to bring in 20K in renewals and new policies.
Again I am so new to this, any help is appreciated.

-Thanks

 

[cgreene]

What state are you in?

 

[Derrick]

Just for reference, I got a job selling P&C, Life, and Health with a $500/wk or $26,000/yr base. I get 0% commission until I surpass the base, with the exception of bonuses given by some of the companies for low loss ratios, and retention.

After that I get 60% new business, and 50% renewals. Not the best deal, but hey, I'll be working under an independent agency that's been around since 1945, and working under a guy who's been selling since 1969. Also, their youngest agent besides me is 55, and none of the kids are interested in selling insurance so there's a possible business buying opportunity down the road.

It's not a bad deal but personally I think you could get yourself in a better situation. I'd rather get a 0% base and like 70% on new and renewals if you could swing it.

 

[jdlash]

Just for reference, I got a job selling P&C, Life, and Health with a $500/wk or $26,000/yr base. I get 0% commission until I surpass the base, with the exception of bonuses given by some of the companies for low loss ratios, and retention.

After that I get 60% new business, and 50% renewals. Not the best deal, but hey, I'll be working under an independent agency that's been around since 1945, and working under a guy who's been selling since 1969. Also, their youngest agent besides me is 55, and none of the kids are interested in selling insurance so there's a possible business buying opportunity down the road.

It's not a bad deal but personally I think you could get yourself in a better situation. I'd rather get a 0% base and like 70% on new and renewals if you could swing it.

Who services your book? 50% renewals is an extremely good contract if your not the one servicing the book. As long as you don't have a contract that says you are required to write a specific minimum amount of new business to keep your job, you are good to go long term.

 

[Derrick]

Who services your book? 50% renewals is an extremely good contract if your not the one servicing the book. As long as you don't have a contract that says you are required to write a specific minimum amount of new business to keep your job, you are good to go long term.

We have to service it, but all claims are done through dedicated clerical (not quite CSRs). I think 2-3 of them for 8 agents. I actually haven't started yet (lol) so honestly I'm not 100% positive what what servicing split is.

The owner knows how hard selling insurance can be, and also wants quality agents to have quality business on the books (preferred, high retention, low loss-ratios). So he's willing to invest in me and think it'll take 2-3 years for me to surpass $26,000 in renewals @ 50%, but honestly, I think I can crush that in the first year. I think I'll also surprise him with cross selling life and health, and investments, which is the background that got me into this place in the first place.

 

[hesse]

How big is his Book? are the carriers they have access to competitive? How big is the town your located in and do they already write most of the business? Breaking into towns where you don't have an agency presence can be difficult

 

[thecommercialguy]

I don't have any value to share here. Just wanted to say welcome to the biz and keep up the hustle!

Hayato
closingcommercial.com

 

[PropAgent4]

Me too I passed my final in pre licensing haven't taken the state exam and don't know for I want to go further. Did not understand this business very well until then and wanted to finish what I started but think I don't want this have a full time job in healthcare customer service and finishing a BA in psychology think I'll stick with counseling. This has been an experience I certainly respect anyone who gets through this rigorous training

 

[rbadoux]

Obtaining a P&C license can open many doors for you. I know a few psych. majors who are unable to land a job they prefer. Many of them become agents and make a good living. Understanding the business comes with experience, its not something that the test or study materials will teach you.

 

[PropAgent4]

Thanks I'm going to give it a try maybe it's a great deal better than where I'm at would you recommend all 4 licenses?