Licensed Sales Associate Pay

[bleedbama]

Licensed Sales Producer Expectations

Hi, this forum is great and has lots of information. I appreciate everyone who participates and helps us "newbie" agents.

I'm in GA and just got my P&C license. I am taking my Life & Health test tomorrow. I work at the Fire Department but I am going to work for an Allstate Agent in town 3-4 days a week. I think I will do very well in this field and will even consider leaving the FD and going full time in the insurance career in about 3 yrs. if all goes well. I'm wondering about the pay that was offered to me by the Allstate Agency Owner and if it is fair. She did tell me that I would not have to service accounts and that I could just concentrate on selling. She told me that she gets 9-10% commission on P&C, depending on number and type of policies sold. ( I know with Allstates new contract, the agency owners have to jump through some hoops). She offered to give me her full commission (10%) on new sales. I would be working as an independent contractor or 1099, commission only, no renewals. She did mention that her commission was higher on Life products and that when I get licensed for that, she would offer me her upfront commission on that as well, with no renewals. Is this reasonable? It is a small office with 2-3 people and their goal for this month is 40 "items", and it doesn't look like they are going to meet it. It think they may get 30-35. Last month the whole office wrote 18k in premium. Seeing these numbers makes me think I will starve working for only 10% commission. If I sold half the goal for the entire office by myself (9k premium), I would only make $900!
The main reason I want to get involved in the insurance field is the opportunity to make renewal income. I asked her if she would consider splitting renewal income and she said she could not afford it. I am reluctant to stay here and think I should just walk away, but before I do I want to make sure I am not being unreasonable. Is asking say, a 50/50 split on upfront commission and renewals too much? I think it sounds fair, considering I am 1099 independent contractor (higher taxes), no lead generation tools available or paid for by the agency, no money for self marketing. I feel like she is trying to get free work out of me, am I right? And if I leave, will I be able to find an agency owner willing to offer me what I am looking for? Please help this newbie from making a mistake! I don't want to leave, expecting to find something that is not available.
Thanks.

 

[bleedbama]

Any advise would be greatly appreciated.

 

[TwiLight]

first off, your goals are way off. A new agent should be pushing $25k a month in premium to make it in a 60/40 split. I would look to an independent agent for better commission.

Don't let the Allstate Agent fool you. You still have to work hard at getting the people in to the office and the Allstate Name ain't gonna hack it in the end.

You need to also get ownership of the Prospect with the Independent Agency.

 

[bleedbama]

Thanks Twilight for your feedback. Where did the 60/40 split come from? Or were you just using that as an example? Like I said, she is offering me her full upfront commission, which is 10%, on new sales only, nothing more. I don't know exact percentages yet, but I know that Life commissions are higher between 20%-45% I think. Which I did pass my Life exam on first try last week, YAY me. I see that you are saying a new agent should be pushing 25k in premium, is this also standard for P&C/life agencies as opposed to life only agencies? I honestly would like to sell more life anyways, that is where my interest lies. If that is the case, I should be pulling a minimum of $2,500/ month, only problem is as independent contractor I'm paying out the wazzoo in taxes, and should I be having to pay for leads and self marketing? That's where my biggest question lies. Should I be paying for leads etc. myself, if so how much will I end up paying out of pocket that will subtract from a measly 10%? Or am I just over reacting/ under estimating the profit potential here?

 

[benefits365]

Thanks Twilight for your feedback. Where did the 60/40 split come from? Or were you just using that as an example? Like I said, she is offering me her full upfront commission, which is 10%, on new sales only, nothing more. I don't know exact percentages yet, but I know that Life commissions are higher between 20%-45% I think. Which I did pass my Life exam on first try last week, YAY me. I see that you are saying a new agent should be pushing 25k in premium, is this also standard for P&C/life agencies as opposed to life only agencies? I honestly would like to sell more life anyways, that is where my interest lies. If that is the case, I should be pulling a minimum of $2,500/ month, only problem is as independent contractor I'm paying out the wazzoo in taxes, and should I be having to pay for leads and self marketing? That's where my biggest question lies. Should I be paying for leads etc. myself, if so how much will I end up paying out of pocket that will subtract from a measly 10%? Or am I just over reacting/ under estimating the profit potential here?

I don't do p and c, but if she gives you 25-40 on life and tells you that is her "full first year commission", that's a lie. Life pays way, waaaay more. 10% sounds light on the p and c side actually, but I wouldn't know.

 

[nyc2phi]

Hi, this forum is great and has lots of information. I appreciate everyone who participates and helps us "newbie" agents.

I'm in GA and just got my P&C license. I am taking my Life & Health test tomorrow. I work at the Fire Department but I am going to work for an Allstate Agent in town 3-4 days a week. I think I will do very well in this field and will even consider leaving the FD and going full time in the insurance career in about 3 yrs. if all goes well. I'm wondering about the pay that was offered to me by the Allstate Agency Owner and if it is fair. She did tell me that I would not have to service accounts and that I could just concentrate on selling. She told me that she gets 9-10% commission on P&C, depending on number and type of policies sold. ( I know with Allstates new contract, the agency owners have to jump through some hoops). She offered to give me her full commission (10%) on new sales. I would be working as an independent contractor or 1099, commission only, no renewals. She did mention that her commission was higher on Life products and that when I get licensed for that, she would offer me her upfront commission on that as well, with no renewals. Is this reasonable? It is a small office with 2-3 people and their goal for this month is 40 "items", and it doesn't look like they are going to meet it. It think they may get 30-35. Last month the whole office wrote 18k in premium. Seeing these numbers makes me think I will starve working for only 10% commission. If I sold half the goal for the entire office by myself (9k premium), I would only make $900!
The main reason I want to get involved in the insurance field is the opportunity to make renewal income. I asked her if she would consider splitting renewal income and she said she could not afford it. I am reluctant to stay here and think I should just walk away, but before I do I want to make sure I am not being unreasonable. Is asking say, a 50/50 split on upfront commission and renewals too much? I think it sounds fair, considering I am 1099 independent contractor (higher taxes), no lead generation tools available or paid for by the agency, no money for self marketing. I feel like she is trying to get free work out of me, am I right? And if I leave, will I be able to find an agency owner willing to offer me what I am looking for? Please help this newbie from making a mistake! I don't want to leave, expecting to find something that is not available.
Thanks.

50/50 is a better deal especially since your doing this part time and would like some residual income.

Not being able to afford giving renewals doesn't make much sense to me and her comp plan is not typical in the industry.

May want to look else where

 

[Philly]

The 25-40% commission on life with Allstate is about right. The captive companies pay way less on their life insurance.

 

[benefits365]

The 25-40% commission on life with Allstate is about right. The captive companies pay way less on their life insurance.

Really? That's almost nauseating.

 

[Philly]

I have a friend with Farmers Insurance and he told me for term his commission is 30-40% and whole life is a little higher. The captive companies have a pretty low commission pay out.

 

[bleedbama]

So what I'm gathering here is that I should not go with a captive agency and go with an independent. I think that might be the best route for me. I'm talking to someone from an independent tomorrow. I'll see what he has to say. He is a friend that works with an independent that specializes in final expense. What do you think are some good questions to ask him when I talk to him, and what answers should I be looking for?