New to Insurance Good Setup?

[Nirvana]

Hello,

New to insurance started 3 months ago. I want to know if this is a good setup.

The brokerage is internal with a Real Estate company. We get anywhere from 9-12 offices with probably 500 realtors. Since I am new the volume is ridiculous.

One guy does $130K/month premium brought in 80-100 policies a month.

I am around 30-40K premium a month 20-40 policies a month and growing.

Here is the catch. We only get paid new business. No renewal book. compensation looks like this.

Free Leads with Realtors we sometimes can not get to the business fast enough
7.5%-12.5% on New Business Premium
Free Cellphone
Free Laptop
$35K Base. Vets are around the $45-60K base depending on production & experience.
Gas & Entertainment Reimbursement.
2-4 weeks Vacation depending on experience
Dental/Med 50/50
401k Match 6%
We set our own schedule as long as we hit numbers.

I feel we are getting screwed with no renewals but I the sheer volume of new business and base is kind of replacing that.

I mean for a recent college grad. I put in probably 65 hours a week but bringing in about $4,500 to $6,000 month. Which is great now because I can make money quick and pay off my student debt but long term I do not want to be working 65-75 hours/week to make sure I keep up my standard of living.

I feel this setup is good for new agent up to 5 years but then your getting screwed.
Thoughts?

Thank you.

Nirvana

 

[cgreene]

Depends what you want long term?

 

[Josh]

That's a strong base along with some perks. If you want to start building a book of business to have renewals than start out independent, but that's a great deal.

 

[FL P&C Broker]

The grass ain't always greener kid....

 

[cgreene]

I just went Indy after being captive for 6 years best thing I ever did. However I am glad I spent those 6 years as captive and I am glad I did it taught me so much.

 

[DHK]

Stay where you're at until....

1) You can replace your source of leads on your own (or buy them)
2) You have the skills to upgrade the quality of your sales for larger premium.

Remember that everything they provide... you'd have to provide for yourself if you go independent. So even with $4,500 - $6,000 per month cash in your pocket, it's really much more with all the benefits. Make sure you're doing a true "apples to apples" comparison before jumping ship.

Do you get any educational reimbursement to pursue industry certifications? If I were you, I'd look into getting your LUTCF, CLU, and ChFC designations on your employer's dime.

Plenty of resources and resourceful people on this forum to help give you direction to help you increase your skills... so if you decide to go independent, you can.

 

[pfg1]

For a newbie, honestly that sounds like an outstanding setup. I wish I had something like that starting out.

 

[axeman462]

That is probably the fairest captive deal ive seen.

 

[indienoise]

That sounds really good, actually. You're being provided all the leads you can handle, have a strong base salary with benefits, get a very fair split, and no offense, but it sounds like a job anyone could do. Get some experience under your belt before you make any moves. I left a captive arrangement to go indy, but as a small start up, I invested a lot of money to get started, didn't write myself a check for 5 months, and there are a lot of expenses that go with the territory of owning a business. My profit is less than half of my gross commission. That ratio will go up with time, of course, but you have to account for these things.

 

[WinoBlues]

Hello,

New to insurance started 3 months ago. I want to know if this is a good setup.

The brokerage is internal with a Real Estate company. We get anywhere from 9-12 offices with probably 500 realtors. Since I am new theb volume is ridiculous.

One guy does $130K/month premium brought in 80-100 policies a month.

I am around 30-40K premium a month 20-40 policies a month and growing.

Here is the catch. We only get paid new business. No renewal book. compensation looks like this.

Free Leads with Realtors we sometimes can not get to the business fast enough
7.5%-12.5% on New Business Premium
Free Cellphone
Free Laptop
$35K Base. Vets are around the $45-60K base depending on production & experience.
Gas & Entertainment Reimbursement.
2-4 weeks Vacation depending on experience
Dental/Med 50/50
401k Match 6%
We set our own schedule as long as we hit numbers.

I feel we are getting screwed with no renewals but I the sheer volume of new business and base is kind of replacing that.

I mean for a recent college grad. I put in probably 65 hours a week but bringing in about $4,500 to $6,000 month. Which is great now because I can make money quick and pay off my student debt but long term I do not want to be working 65-75 hours/week to make sure I keep up my standard of living.

I feel this setup is good for new agent up to 5 years but then your getting screwed.
Thoughts?

Thank you.

Nirvana

Sounds awesome.

Two suggestions: do not slowdown, there is a long line of more qualified and hungry people behind you. Clear that "am I being screwed" out of your mind.