Agent Compensation - Tell Me!

[sales_Wolf]

How about this setup. Draw of $400.00 per person on a monthly rate. And 20% commission. Would this model work for Health and Life? Or to skimpy??

 

[pfontneau]

When I was with my prior agency, I was paid 50% on new business and 25% on renewals. The agency owner's wife computed the commissions from the commission statements that they received from the P&C companies. If we were lucky, we would receive our commission checks on the 15th of each month; but it did not happen every month.

 

[Baysport legend]

Please explain '100% new business commission' for 1st year agents?

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I am a 1st year agent P&C located in California specializing in commercial contractors insurance. My go to is surety bonds (license & contract), build trust and cross sell to Liability, commercial auto, and workers comp.

I've been licensed for 5 months and was in telemarketer training for exam previous 4 months. #1 telemarketer producer. Auto dialer CRM cold-call B2B outbound/inbound daily average 80-100. 1 lead per 10 cold calls. Avg policies closed per business day is 2.
I would say per lead Im just about 1/10. So 8-10 leads a today. A lead is to quote commitment, complet app, follow-up w/ quotes and CLOSE. Close means get docs out until contract signed and Paid. Maintain a Prospect sales funnel of 100 with systematic follow-up every week for 5 weeks (avg # of follow-ups is 12).

I have B2B sales experience and am a natural salesman but I love to close. Wouldn't take any other profession.

My problem is my agency has given false promises aka I blame myself for not asking probing questions. Founded startup failed within 7-months struggling to pay rent.. Cut my losses and needed to make some money asap.
I killed it for this agency: worked over 85+ hours a period but what I have rcvd in return? The nice smiles, every other day lunch outings, weekly bar trip, bonus gift cards, well it has all stopped 2 months ago. Over this time span I had received multiple sales offers in Software & medical industry but decline. I was told 100K feasible in 3rd year yet talking w/ other agents they say 5 years, if your good.

I mean check out this compensation plan and tell me what the deal is please!

My compensation is as follows:
1st year license agent
Two compensation options: 1) $12/hr, + 10% commission; 2) 30% commission
All agents are 1099 -new business and renewals are both 30% commission from the agency commission

Is this good or what?

1st year agents go out an get their own leads.
Going into the 2nd year they hire a telemarketer to begin producing leads for you (no charge to agent).

Once I became licensed, the prior 4-months telemarketing as the #1 producer, nothing transfers to me even if it's a prospect in pipeline- I'm cool w/ it- I can sell so it is what it is.

- agents in first year are 100% new business, feed yourself with leads and close them out from start to finish. Only so much time in a day...

1st-month - closed 34 policies w agency commissions around 4500 (little higher) so my hourly plus 10% .. Lol
2nd-month - closed 54 policies w/ agency commissions around $7600 .. My hr + 10%= $760
-Following two months I close monthly commission to agency at 4400 and 4600.. Month 5 closing out around the same 4500

Now my total premium is on track to hit 100k after next month. Idk



Please help and advise if this is the norm or am I getting royally ******?

Thank you all in advance!

 

[Emmaus]

Please explain '100% new business commission' for 1st year agents?

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That means that I would not take any of the up front commission on policies they write. So, if they sell a $1000 auto insurance policy, and the carrier pays 10% commission, I would pay them all 10% = $100.00 .

My money would mostly be made on renewals. I don't mind giving all new business commission to the agent if they're good because I'll gain a lot back on renewals.

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You are going to pay somebody 100% and take on all that exposure without any of the benefit up front?

I wouldn't do it, but great set up for the producers even if you are only paying 30% on the backend.

When it comes to hiring, do you think this would get the attention of agents looking for a job? I want to attract good selling agents because I need to grow my base book, the quicker the better. I don't care about new business commission so much at this point.

 

[VolAgent]

When it comes to hiring, do you think this would get the attention of agents looking for a job? I want to attract good selling agents because I need to grow my base book, the quicker the better. I don't care about new business commission so much at this point.

Are you looking for new agents or experienced agents?

 

[FL P&C Broker]

When it comes to hiring, do you think this would get the attention of agents looking for a job? I want to attract good selling agents because I need to grow my base book, the quicker the better. I don't care about new business commission so much at this point.

You will probably attract some good producers. More so somebody who might only be concerned about putting whatever they can on the books though. If a majority of their income comes on the front end what will motivate them to make sure they are writing clean, profitable business?

My main concern would be the increased cost (management system, E&O) to carry the producers and you won't probably see any real benefit until 15 months after you hire them

 

[Baysport legend]

Shoot me a PM. California P&C agent. 100% commission new business. Sounds great to me

 

[b61mack]

what state and city are in...

 

[KeithG]

85/50

 

[jaygreen002]

We are 100% personal lines and do 85% and 50%.

We kinda have the same compensation. Almost, I must say.