I am a new agent breaking into the field. I have agreed to work for a small independent broker that has started me off at a minimal hourly wage for training and licensure purposes. Now that I have gotten licensed and appointed through a few carriers, I am wanting to approach him to see about increasing my pay. He has paid everything thus far and pays for internet leads. I am starting to produce through those leads. I am needing a guaranteed pay for family purposes but want commission plus draw. We have briefly discussed this but he beats around the bush and wants to put it off until beginning of year, referencing what he has invested. What would be fair to approach him with and would I find anything that would offer draw plus commission elsewhere. Have been in sales for 10 years with medical devices and personal reasons set me on new career path. Just wanting to make sure family is taken care of and that is difficult at rate I am currently at. Any suggestions would be great.....
New Agent Needing Advice
- Thread starter new_ky_ag
- Start date
- 924
You either hash it out now, or when you have someone who wants to buy a huge life or annuity from you, just see what happens. I think we all know what happens. He takes 95% and you get your salary and he throws in a little bonus (the 5%) so he doesn't quite so much like a sack.
Hash it now, he will walk all over you if you don't. If he isn't willing to do what's right, then you are well rid of him.
Hash it now, he will walk all over you if you don't. If he isn't willing to do what's right, then you are well rid of him.
- 1,481
you can get what you need in the Ins Industry by way of comp. My question is why leave Medical Supplies, I thought that was lucrative stuff.
Use your hunting inhibitions and get what you want. Hash it out now. The Guy Paid for A $100 license and a months Salary. He took gamble on you, He'll have to gamble to keep you.
Finding a Good producer and..... (Hard to do)
Keeping a good producer..... (Very Hard to do- But Shouldn't be)
The two hardest parts of the producer equation.
Use your hunting inhibitions and get what you want. Hash it out now. The Guy Paid for A $100 license and a months Salary. He took gamble on you, He'll have to gamble to keep you.
Finding a Good producer and..... (Hard to do)
Keeping a good producer..... (Very Hard to do- But Shouldn't be)
The two hardest parts of the producer equation.
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- Thread starter
- #4
StanTheInsMan
Expert
- 50
Very hard to get a draw out of a smaller agency. They just usually don't have the working capital for it. Even bigger agencies and companies usually don't have a draw system. 100% commission is the industry standard for better or worse. Sorry. I wish I had better advice.
- 15,041
Fair is what you both agree on and can live with. Anything else is just someone else's opinion.
That said, if he won't sit down and hammer it out now, it won't be any better later on. Then you will both have more invested and be less willing to reach a happy middle ground.
That said, if he won't sit down and hammer it out now, it won't be any better later on. Then you will both have more invested and be less willing to reach a happy middle ground.
- 1,481
VolAgent is correct.
- 11,274
"Those who would give up essential Liberty, to purchase a little temporary Safety, deserve neither Liberty nor Safety." - Ben Franklin
- 11,995
Let me get this straight. He paid for your licensing and has guaranteed you a small salary. He's also paying for leads and giving you a place to work. Now that he's made all the investment in getting you started, you want to make more money off of him? That's all fair, but part of the probelm you're going to run into is if this is a P&C shop (which sounds like it is), there just isn't a margin there.
The best way to increase your pay would be for you to talk to him about generating your own business and seeing what type of splits you could be getting at. You'd actually be generating him more money which means he could pay you more. You could also cut and run to find something else, but right now it sounds like all you're doing is order taking. If you can start actively producing without the leads he's buying, you'd be a huge asset.
The best way to increase your pay would be for you to talk to him about generating your own business and seeing what type of splits you could be getting at. You'd actually be generating him more money which means he could pay you more. You could also cut and run to find something else, but right now it sounds like all you're doing is order taking. If you can start actively producing without the leads he's buying, you'd be a huge asset.
- 1,481
Josh is correct as well. Which is why agent aggregation works. A Group can provide the most lucrative splits because it has the best SCALE. (He didn't say that I did.) Local agent gets you on board and loses on you for a long time at a split you think in unfair. That is not the agents fault, he is trying to make it work for everybody.
But...
A group can offer you Carrier access, Training, overrides, bonuses, ownership, and a 80/20 - 90/10 commission split on new and renewal because of the SCALE.
Seek the factors you must have in your insurance career and find the agency who can provide that. Base salary, provided leads, the ones I listed above, and On and on, and on.
But again Josh is right, the guy is giving you what he can. If you need more, you can find that too. Your current employer does not have the SCALE of a national group to match their offering.
But...
A group can offer you Carrier access, Training, overrides, bonuses, ownership, and a 80/20 - 90/10 commission split on new and renewal because of the SCALE.
Seek the factors you must have in your insurance career and find the agency who can provide that. Base salary, provided leads, the ones I listed above, and On and on, and on.
But again Josh is right, the guy is giving you what he can. If you need more, you can find that too. Your current employer does not have the SCALE of a national group to match their offering.
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