How do you set up your agents compensation package?Go to Top
Here let me pair it down so I might get a more receptive response:
If you are an agency owner, Possible to place business with basically for any market but can not pay a salary what is a generous split and attractive long term offer to attract talented agents to help grow the agency?
New/Renewal Split?
No 401K offered
How do you set up a way to pay for the vesting into the company? I.E. Paying for renewal book when retired, pay a % over X amount of years?
No Health/or any additional benefits offered
Provided by agency:
Some online leads (NQ) are provide, paid by expense budget from the primary company we represent
Very Little, if any walk in business per month, average 1 person a month, if that.
Maybe 3 calls a week inbound quote requests.
Basically the best offered is the fact the premiums on P&C are extremely competitive and the Companies intentions and growth will be strong so as long as you can quote em and can build a good rapport you will get the policy. .
Agents Requirements:
Pay for you own business cards
Pay for any of your own marketing, some can be paid by the growth department of the Insurance company if they are providing those funds, when available it is usually 50% of specific campaigns Otherwise 100% out of agents pocket.
No Direct customer service to handle requests. There will be one available but they will mostly be doing admin work, the books etc. (Not Licensed)
Encouraged to foster relationships with Insurance company customer care where no direct line is currently available, so by emailing, calling customer care line.
In all, a place to set up shop or work out of home and build a book with minimum interference.
Thoughts?
Last edited by Championpatriot : 04-16-2009 at 10:32 PM.
Based on what you say, I would request what the others coming in are getting. You will have no place to negotiate, however, if you aren't ready to go elsewhere if he refuses. Based on your last year income, it's a $12,500 difference. Personally, that's enough for me to fight for.
Hello All..great site..glad I found it, have found a lot of useful tips so far..But I have a serious dilemma..I will try and keep it short..and of course it is about the MONEY!!
Ok..Coming up on 3 years ago I met up with an agent that just started his agency..probably about 8 months before I got there..so needless to say not much of a book. I did not know insurance except for the 4 years my wife had with AAA as an agent..so I did pick up a lot when we talked. I came from other sales backgrounds. In any event we without so little insurance experience I did not expect big money up front and excepted a 50-50% split from the on set..no benefits, no extras. I soon realized that based on lets say 1 if that inbound call per day and online quote requests I was going to have a serious time making a living and getting to full time..I was working at a restaurant at night while I got my P&C lic. (I paid half for it, and already had my life) So we agreed to a 75-25 split for very short time..I think it lasted like 6 months. Then switched it back to 50-50 ..Once I got the quoting/underwriting down my production took off one day I just got a snack for closing the online quote requests..and some thrown my way from the agent..
Let me stop there..and just ask this question because I tend to get very detailed and this would be a mega post! I did all the intangibles to make sure the AGENCY thrived..As opposed to the shark that was only looking out for himself..took calls that had nothing to do with me, moved on, fixed computers, showed someone how to do something ..whatever it may be ( I tend to figure out how everything works and look at like how can we get it done..not why is it so hard.
I was asked to go to an agency we took over..40 miles away from my house..I said of course it is for the agency..we set up a plan of 1% of the total book over two pay periods of the month plus my 50 of new business..none of my own renewals ..At that time for example $800 per month + my 50% new production..then when my own renewals eclipsed that $800 for the first time..about 5 months later if I remember correctly he wanted to switch back..Of course every month was not that consistent..we only had online lead requests..plus some calls Trickling in..So the ending result is I only made $25 K last year.. which was a full year at 50-50..It is now my understanding he is hiring on new agents..basically recruiting anyone he can from other major companies (This is a major company we are representing as well and poised to make big progress in CA over the next decade) and paying them 75-75% off the bat..Now I am at 50-50 with no customer service agent and my clients calling and emailing me..basically depending on the day a decent amount of service work..Based on this business model..you do not create a "sales manager" , you keep recruiting experienced agents and giving them motivating % which 75 is pretty F-in motivating and you try and give them the tools to hit great premiums..your first year with them might not be to great bu when renewals hit and they keep producing for a couple more years..your on easy street..the problem you leave out the one guy that gives all efforts to the success of the agency the same opportunity
Here is my problem, when I came to the agency I did not need him nor did he technically need me.. I came for the opportunity to own a residual business and part of the company and I made that clear..with my actions and my mouth..but had to let actions speak first..As of today I am have lost my motivation to sell..even though i am costing my self money..because some ownership in this company with that business model no longer seems viable..but I reading here and talking with people about being able to keep the renewals if and when you decide to slow down and/or semi-retire, move on drains me even more.. As I mentioned out simple agreement is 50/50 no benefits, no 401k no no no no no.
The bottom line is the agency would and could not be where it is if we did not start working together..I am one of those people that give my all for the team/family humanity..whatever and usually knowing someone is safe..or happy is my frosting and I do not expect anything more from anyone..but when it comes to my career..The
There are many underlying reasons I would have to explain to let you know why I have not yet just gone and demanded I be treated the way I now expect..If anyone is interested let me know ..at this point I think I am just trying to get myself to forget my reasons and do it..but I was looking for experienced minds in the business to tell me I expect to much or I am right on! Please chime in..
I am wrong to assume with the lack of any benefits, salaries, Guarantees from day one ...AKA NO INVESTMENT IN ME.. 75/75 should be a given as it is to the others???
You dont have a written business agreement with him and he has tied into the fact that you dont have the balls to work it directly with him. You basically have the mindset of an employee (oh boo hoo, I do everything selflessly for everyone and dont get paid as much as the other drones) rather than a business owner. Next year he will give you a desk next to the photocopy machine and that will be a big crisis in your life.
Part way into your post, which was turning into the Gutenburg Bible in length, I thought you were headed in the direction of how to go independent now that you have learned your lesson but you actually want counseling on how to be a sucker and how to deal with the fact that that 12,000 a year will keep you chained there and groveling. I liked the part though about your being there because you give your all for humanity.
Grow a pair and start thinking outside your current mindset. Doesnt mean we dont all love you here because you know we do
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Grow a pair and start thinking outside your current mindset. Doesnt mean we dont all love you here because you know we do
Yeah, dude. I know you are frustrated and just venting but you are wasting time complaining. If you are as good as you say you are and only made that much, then DO SOMETHING ABOUT IT.
Either demand better from your agency or go independent and do your own thing, $24k a year is nothing to leave behind compared to what you could be making. The power is in YOUR hands.
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well, what did[beer edit]ya eggsspekt?[vodka edit] good insurance leads?[mad dog 20/20 edit]
For all you know, you'll ask and he'll say...Oh, I forgot that was our intitial agreement. Of course I'll up it to what the new guys are making.
What you need to ask yourself, however, is if you shouldn't be making MORE than the new guys because of what you said. Apprently you helped start him out...are instrumental to the business doing well. If so, you need to be making moer than incoming people.
Just my opinion.
BTW, it sounds like you know EXACTLY what you need to do, you're just looking to this forum to build up the courage to ask for it. I think it's clear you're not making what you need to be, so we've given you the greenlight to act TODAY. Don't put it off until tomorrow now matter how scared you are. You'll sleep better TONIGHT knowing you've done it and will probably be wondering why you even worried in the first place.
Winter..what can I say you are right on and I should in fact "grow a pair".. My current mind set is foreign to me, in past times I would just look at my target, come up with some plan and fire away. I walked away from the cell phone business I was doing quite well in because it just did not hit the spot for me. Once key aspect I left out though in all this that makes it hard to have my back up leverage is that I am moving over 300 miles away in 4 months.. This does not change much as far as staying with the agency, 99% of my bus is done over the phone. But you are right about the employee mindset and he may be picking up on the fact I do not have the balls to deal with it directly..but I do have to say I am pretty sure it also has to do with the fact we are still treading water..not standing on solid ground just yet so the portion he makes it vital..Which brings me to this..I know I need to stop complaining I cannot agree more..this is far from my normal behavior and I need to get back to my normal self so here go's the final question so I can get my self back to business. Based on Zero Upfront Salary when I started, Zero Benefits etc I have described here what is a reasonable contract to put together. Your responses will be taken seriously as I draft my proposal to him THIS WEEK! I know I deserve and do not feel I can settle with less than what the others are making... But until these guys actually start making him more money he may be in no position to give up 25% from me right now. So I am going to start out with a rolling contract and finally getting to to 75-75 .. Immediately starting at 75 up front but renewal maybe 60..similar to my previous post..But I am also more concerned with the future aspect..Is it reasonable and what is fair to set up for the future, contact in regards to renewals, retirement etc. Like I mentioned as of now the only known heirs to the agency would be his 18 year old son, younger kids, sisters ets. If something were to happen to him how can I keep my self protected in this case...We are in the insurance business..so I think a very important question to ask? Your points are well taken and they are "dropping" Winter..just as Briko said I know what I need to do and I was looking for some encouragement ..But I do not want to just plug a hole in my leaky boat so to speak to please me now..I want to make sure my Hull is strong and secure for the long term. I am not sure who you guys and gals work for but when I compare my wifes situation to mine I do NOT EXPECT nearly what she is provide, but to create what I want .As you know being a sales champion is an art and I have to make sure when it rains my canvas does not get wet. My wife does not have to worry about these things, they provide the protection from the elements. Meaning she has a 401k matched, lots of walk ins to get there numbers done, possibility of making a great yearly salary with not renewals but you can make a decent living but they are stuck to their way of doing business ..their schedule etc. I am only looking for open waters with the right ship to get to my destination. Sorry again for the long post..as you mentioned Winter..I tend to get "Biblical"
Your posts would be a lot easier and more enjoyable to read if you broke them up into paragraphs.
I think your current attitude is reflected in the way you titled this thread. You are the only one who can answer that question.
I would have to say that since you are still there accepting the crumbs that are being thrown at you that you are apparently very content with what you are receiving. You have either reached your comfort level or do not have enough self-confidence yet to strike out on your own.
Either way it is past time to make some decisions. Be happy with where you are or make some changes. Only you can make that decision, we can't make it for you. We don't know you so that may be the best place for you at this point in time.
I would venture to say that if you started a thread titled "DO YOU THINK YOU ARE MAKING ENOUGH MONEY?" you would not get one agent who said YES.
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I would think my new start up on this post should elicit a more common sense..and thoughtful answer..hmm..just maybe...trying ....just maybe....huh ...trying to uh maybe think..just a little..huh..little bit of novel there...little bit of thoughts..(just replacing what I here before and thought of the Family guy episode)
Last edited by Championpatriot : 04-16-2009 at 09:40 PM.
Your posts would be a lot easier and more enjoyable to read if you broke them up into paragraphs.
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Not meaning to pile on the OP here, but good grief you called that one right, Frank. My eyes were sort of glazing over. I really don't mean you any disrespect, championpatriot.
The Bottom line is I know how he is handing the new recruits..and I am good with it ..as long as I can set myself up too but i also needed to know how any of you handle with your current agents if you are an owner in regards to them being with you for years..if you do not offer a match 401K ...instead how do you set up a good agreement off the book of renewals?
Thanks Champ, that was a lot more pleasant to read.
I think that you will discover that the vast majority of agents on this discussion board are independent agents who work for themselves. Some started captive like I did, others started with an agency and some have huge balls and started from day one on their own. Mine aren't that big.
Regardless of how they got their start in this business most eventually realized that one does not make money working for or under someone else.Well except for hookers.
We became independent to eliminate the stress, hassle and aggravation you are experiencing. I became an independent agent to put myself in charge of my destiny. Oh, I also don't play well with others.
You are still thinking of what you are doing as an employee would think of it. I don't make a good employee and I would venture to say the other successful agents who I have known and many on this board do not "play well with others" either.
You sound like you know what you are doing and have a good work ethic. Why are you still "carrying someone else's water"? You are working your ass off making only a fraction of what you would make if you were collecting 100% of the commissions you earn.
If you need help or some training to strike out on your own there are a lot of agents here who will help you. If you ever want to venture into the senior market I will be happy to give you some of what I have picked up in the last sixteen years.
If you are happy there and just want to bitch a little but not make any changes that is one thing. However, if you want to excel in this business and put all that petty crap behind you and concentrate on making money instead of bitching about it then get out of where you are.
Thanks Champ, that was a lot more pleasant to read.
I think that you will discover that the vast majority of agents on this discussion board are independent agents who work for themselves. Some started captive like I did, others started with an agency and some have huge balls and started from day one on their own. Mine aren't that big.
Regardless of how they got their start in this business most eventually realized that one does not make money working for or under someone else.Well except for hookers.
We became independent to eliminate the stress, hassle and aggravation you are experiencing. I became an independent agent to put myself in charge of my destiny. Oh, I also don't play well with others.
You are still thinking of what you are doing as an employee would think of it. I don't make a good employee and I would venture to say the other successful agents who I have known and many on this board do not "play well with others" either.
You sound like you know what you are doing and have a good work ethic. Why are you still "carrying someone else's water"? You are working your ass off making only a fraction of what you would make if you were collecting 100% of the commissions you earn.
If you need help or some training to strike out on your own there are a lot of agents here who will help you. If you ever want to venture into the senior market I will be happy to give you some of what I have picked up in the last sixteen years.
If you are happy there and just want to bitch a little but not make any changes that is one thing. However, if you want to excel in this business and put all that petty crap behind you and concentrate on making money instead of bitching about it then get out of where you are.
Excellent post, Frank. I especially like the part about "not playing well with others." I use to think I played well until I got kicked off the playground....................LOL.
This post only hurt the cause..obviously most cannot appreciate others challenges they face...I guess maybe I am in the wrong place and most of you guys are like T.O. .. and look in the mirror and tell yourself..I am the greatest..I am the greatest..I am the greatest!!! Insurance must not be a team sport..oops my bad I must have picked a bad profession for myself..or I will just start treating it like soccer and if see any of you around I do not like I will just take out your shins and give you nice solid head but..is that how we fellow agents say hello??
Last edited by Championpatriot : 04-16-2009 at 09:44 PM.
Thanks again Frank..but I think it is important to understand that the insurance company we represent is and will give us plenty of opportunity to grow..and there is no need to go elsewhere as the type of contract he is on are no longer available to new agents..With that said the owner has shown to be a good man but also submissive. Meaning the "shark" I mentioned was able to set himself up basically at my expense as my goal was to help the agency hit the "no return" . Unfortunately as contract obligations to the company have come due, office expenses are now the sole responsibility of the agency, leaving my decision to look out for the agency first seem the wrong one. But I do not see it that way..or maybe do not want to. He will be open to my concerns and we will make changes but like any negotiation..if he counters back I need to make sure my first demands shoot for the stars.
Again there is no reason to leave, I am already "striking out" as of now. I apologize for asking you all to be my scout to determine my own pitch to make...you can sign "A-rod" and hope you make the world series..we saw how that turned out..or you can build and invest in your talent to create a team that can compete on any day.
I came to this forum in search for some sort of guidance I was not able to find elsewhere..as I so spewed on to you my oh so sad childhood ..I really do not have many people around me that has any answers except for "I cannot believe this happens me" ....I guess my weakness started when my father was actually a father. On my 8th birthday he bought me a box of baseball cards (he collected sets) ..earlier in the day I over heard him talking to his friend about money issues..I refused to open the box..even cried like an 8 yr old.
I lived 2 hours away from him at that point, soon after that visit for the summer he went to prison..when he got out he had 5 kids with another lady..all now in foster care, needless to say he was not there to see me win the game. I decided some time ago I would expect less from others and much more from myself..this has left me with a low sense of my value in the $$ sense, as of now I make a difference in the lives of anyone I can by doing something about the challenges that we face and not find the blame somewhere else.
Thanks again all...I will update anyone that is curious to how this turns out.. Until then I hope all of you the best.
After 3 years you only have $50,000 coming in total commission that tells me that your not writing enough business and it sounds like ownership see's the same thing.
When guys start to do other thing than sell and service then they really don't want to do what it takes to get new business.
From the effort your putting into this career you making exactly what you should be.
To hear you moan about service really shows that you don't care about your clients.
Should the agency hire someone to service your block while your sitting around working a couple of web leads?
You know..I got to thinking last night and I figured I would get more half a$$ responses, guess thats my fault for the drawn out thread I put together..sorry for that part just thought it might help...guess not.
It is pretty clear that some of your may have no respect for the mules of your orginzation that carry the weight..I am fine being a workhorse I am semi young but my carrot seems rotten. I guess it has gotten all too common for people to think it is done all on your own..rarely maybe.
One of you said something to the effect of striking out on your own..That one really popped into my head..I DOUBT any one you have a one man show where your book was created from scratch and you are plugging away. Now I would not doubt it in a tiny a$$ market where your rent is $400 a month! Sorry but this is not the case here in CA. Maybe some of you that have found a great niche and are good at what you do in LTC, Life etc. But we had P&C numbers we needed to hit first...I have a solid foundation of P&C now so I can go after bigger fish now ..but again most of you missing the point
At this point by the way it is 2.5 years..and although that seems like little you seem to be ignoring the "bible" I printed.. I took a lot of my time training the lone customer care rep we have ..handled policies that I got paid nothing to handle, fixed the computers when they went down..like I said Indespensible..The unfortunate thing I did not foresee what how he was going to structure the agency.. Not like an orginization..Owner...CFO..Sales managers.. ETC... Instead it is becoming more like a militia..only my weapons are inferior to the others.
You know it is interesting you would think most of you would come up with more of a contemplative response..maybe ask a question or two before being so giving and sharing your 2 cents..
Servicing my clients is exactly as it has become that's part of the point, I have no customer service agent in my office to take the call..handle what can be handled or move it to me..I am flooded with emails and calls daily to deal with my current clients in addition the to the clients that were on a book of business we took over for this office in which are NOT under my name and so NO $$ in my pocket. Yet for the purpose of the agencies growth I have kept my mouth shut..
After I found out about new agents gift of 75/75 while I have to service exisiting clients I do NOT get paid for, my own clients with not real daily support I started to get a little frustrated. Tried to lay it there for someone to get out of their F-IN box and give a solid piece of advice. Hope you do better with your friends.
If I produce anymore on what I was averaging it will be no time before I have a page full of messages everday for every little thing then I really will not be able to produce. I am simply trying to secure a solid contract that lets me put my thoughts at ease and get back to business! Its that simple.
Odd how most of you cannot even think of it like that..you must treat your people like MULES..probably have a decent amount of turnover..but of course as long as they bring their warm market do a little extra business..No loss for you..What a shame. Thanks again Good luck. Good Looking Out.
Here let me ask one last time.. for anyone that may not have some sense in there brain they did it all by themselves but actually sacraficed for others first then it worked out for them in the end. If you are an Agency owner and you bring on an agent and you pay no salary what kind of package do you put together..for the New, Renewal..vesting into the company?
I am new and I get 80% commissions and all the training I want. No leads or anything like that though. Oh, and I got $8250 in $500 increments per week until that ran out. So it pretty much sounds like your deal sucks.
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Like it was said earlier. Grow a pair, demand what you feel is right (75/75...don't rationalize less because HE'S growing). Do that or take your business to someone else that will pay you the commissions you feel you're worth.
He's enticing them to come by offering them more, so he shouldn't have a problem offering you more to keep you. Especially if you're as indispensible as you think you are.
Last edited by briko3 : 04-16-2009 at 05:23 PM.
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How do you set up your agents compensation package?
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