Is this Fair Producer Compensation?

InsFNG

New Member
3
Hi everyone! First post on the forums. I just obtained my P&C license and have been offered a position as a producer with a small independent agency. I was told I'd be provided with some leads from their website along with a few internet leads a day. I will also spend 5-6 days a month marketing to mortgage companies and at networking events.

The compensation being proposed looks like this:
  1. $24k base
  2. No commission on the first $8,000 in premium every month.
  3. 4% initial commission
  4. 3% on the next renewal
  5. No 2nd renewal commissions
  6. 5% profit sharing, up to $5,000.

Is this a fair deal if they are providing training, leads, and marketing?

I'm just new to the industry and don't want to accept a low ball offer.

TIA
 
Fair depends upon where you live and your local economy. At the same time you have no experience. If you haven't received other offers that are better this may be the best offer for you.

Apply for a couple more positions before you make a final decision.
 
Hi everyone! First post on the forums. I just obtained my P&C license and have been offered a position as a producer with a small independent agency. I was told I'd be provided with some leads from their website along with a few internet leads a day. I will also spend 5-6 days a month marketing to mortgage companies and at networking events.

The compensation being proposed looks like this:
  1. $24k base
  2. No commission on the first $8,000 in premium every month.
  3. 4% initial commission
  4. 3% on the next renewal
  5. No 2nd renewal commissions
  6. 5% profit sharing, up to $5,000.

Is this a fair deal if they are providing training, leads, and marketing?

I'm just new to the industry and don't want to accept a low ball offer.

TIA

I'd be interested to know what type of leads they are getting off their webpage. As the first response noted, it depends on your location and what YOU need to make to be able to pay YOUR bills.
 
Starting out that's a fantastic deal as far as this industry goes. To get any type of a base along with any type of leads is a great way to get started. After a few years you might want to consider other options, but it's certainly a fair offer.

If you look at other options you'll have a higher upside potential, but that's almost always going to require you to have some marketing money and 100% commission based.
 
Fair depends upon where you live and your local economy. At the same time you have no experience. If you haven't received other offers that are better this may be the best offer for you.

Apply for a couple more positions before you make a final decision.

I live in Phoenix, AZ. It's not SF or NYC, cost of living wise.

I'd be interested to know what type of leads they are getting off their webpage. As the first response noted, it depends on your location and what YOU need to make to be able to pay YOUR bills.

I understand I need to be able to cover my bills, but I was more looking for how it compared with in the industry.

Starting out that's a fantastic deal as far as this industry goes. To get any type of a base along with any type of leads is a great way to get started. After a few years you might want to consider other options, but it's certainly a fair offer.

If you look at other options you'll have a higher upside potential, but that's almost always going to require you to have some marketing money and 100% commission based.

I appreciate the response. This is the conformation I was looking for. There's so many moving parts, that I wanted to make sure I wasn't being rope-a-doped. Thank you.
 
Some quick math --- (50k - 24k) / 12 / .04 -- indicates that you'll have to write $62,166.67 in premium every month to make $50,000 in your first year, before renewals kick in.

What is the agency's average premium per policy? If you don't know the answer to this question, you should ask. The answer will tell you how many policies you need to write each month.

Is that number doable given your experience and the quality of their leads? That's the real question here.
 
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