Insurance Agent Forum

[jmar1985]

Hey guys,

I've been in the financial services industry for about 2 years and have been concentrating on life for this past year. I am getting 50% FYC and 3% residual on life and also get a $2000 draw. The draw goes down after 6 months to 1800 then to 1200 after the next 6 months. It is a 3 year contract and towards the end I won't have the salary anymore. I also get a 20% quarterly bonus on total sales.

Is this FYC % standard? This past year concentrating primarily on life has been a rollercoaster and definitely a learning experience. Was just hoping to get some feedback if this was an "average" pay schedule for a newer agent.

Also is it poor form to try to renegotiate a better contract before the current contract is done? My other option was to take no draw and get a 75% quarterly bonus as opposed to the 20% I was getting now. Was thinking after this first year is done with, instead of getting 1200 + 50% FYC + 20% bonus, I would try and renegotiate for 0 salary and 50% FYC + 75% bonus.

Thanks in advance,

Jason

[Newby]

Originally Posted by jmar1985

Hey guys,

I've been in the financial services industry for about 2 years and have been concentrating on life for this past year. I am getting 50% FYC and 3% residual on life and also get a $2000 draw. The draw goes down after 6 months to 1800 then to 1200 after the next 6 months. It is a 3 year contract and towards the end I won't have the salary anymore. I also get a 20% quarterly bonus on total sales.

Is this FYC % standard? This past year concentrating primarily on life has been a rollercoaster and definitely a learning experience. Was just hoping to get some feedback if this was an "average" pay schedule for a newer agent.

Also is it poor form to try to renegotiate a better contract before the current contract is done? My other option was to take no draw and get a 75% quarterly bonus as opposed to the 20% I was getting now. Was thinking after this first year is done with, instead of getting 1200 + 50% FYC + 20% bonus, I would try and renegotiate for 0 salary and 50% FYC + 75% bonus.

Thanks in advance,

Jason

It depends on what type of leads and support they are supplying you and at what cost. Do they supply office space, equiptment, phone lines, fax, training etc.?

It also depends on what type of life insurance. Term pays a little less than whole-life. Mutuals with participating policies pay a little less than non-participating.

50% plus 75% bonus would be very good for most types of life insurance, especially in a captive situation.

50% with 20% bonus is obviously not as good. I would get off the draw as soon as you can afford to. That false safety net is costing you a lot of money. It's not real. If you don't produce commissions, they will have to get rid of you anyway.

[jmar1985]

Thanks for the reply Newby. They do provide office space, phone, fax, and training. The 50% FYC is the same for all life products. Do you think it would be okay to renegotiate a new contract or would it poor business manners to do so in your opinion?

[Newby]

Originally Posted by jmar1985

Thanks for the reply Newby. They do provide office space, phone, fax, and training. The 50% FYC is the same for all life products. Do you think it would be okay to renegotiate a new contract or would it poor business manners to do so in your opinion?

I wouldn't ask to change anything until you are ready to go full commission. While you are learning you WANT someone to be making money off your sales. That's the only way anyone is going to really give you the time and attention you need.

When you no longer need guidance, go full commission with no base and ask for as much as you can get.

Sounds to me like you're in a good situation.

[Ami]

Originally Posted by Newby

I wouldn't ask to change anything until you are ready to go full commission. While you are learning you WANT someone to be making money off your sales. That's the only way anyone is going to really give you the time and attention you need.

When you no longer need guidance, go full commission with no base and ask for as much as you can get.

Sounds to me like you're in a good situation.

On the face of it I'd tend to agree. Good coaching, and a good degree of professional learning is very valuable. Try to learn as much as possible about acting professionally and in the best interest of your clients. Having satisfied clients who think highly of your abilities and attitude is ultimately far superior to any lead generation system.

There's nothing better than referred clients who call you because they want you as their insurance advisor. If you have good professional mentors, they're worth the investment!