Captive Life Company Office Expense

eric rose

Expert
54
I am a current Met Rep and have come to realize that when I come off the company financing (2 1/2 years service) my office expense will be around $280 per week. :swoon:

This includes my cube, use of office technology and meeting rooms, and admin expense. The admin keys in our applications and orders the para med exams but I really don't feel like this is worth 15k per year. When I questioned my manager and others in the office they all seem to think that this is industry standard. When I interviewed with the big 4 mutuals they did say there was an office expense but nowhere near what I am looking at now.

What does your office expense look like? Am I wrong to feel like this is a crazy amount for what I would be getting?
 
$150/mo.
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I fax my own app to the appropriate place and do my own paramed scheduling. Bascially it takes about 2 minutes for the faxing and 30 seconds for the paramed scheduling. I would definitely do it for everyone in the office for $15K per year. I could get everyone's done in about 20 minutes.
 
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I am a current Met Rep and have come to realize that when I come off the company financing (2 1/2 years service) my office expense will be around $280 per week. :swoon:

This includes my cube, use of office technology and meeting rooms, and admin expense. The admin keys in our applications and orders the para med exams but I really don't feel like this is worth 15k per year. When I questioned my manager and others in the office they all seem to think that this is industry standard. When I interviewed with the big 4 mutuals they did say there was an office expense but nowhere near what I am looking at now.

What does your office expense look like? Am I wrong to feel like this is a crazy amount for what I would be getting?

Wow! That is $1,214.00 dollars a month for a desk, chair and a phone. That is so kind of them to only charge you that amount of money so you can come to work every day and make money for them. They probably don't give a damn if you sell anything or not with those kind of "office expenses".

I think paying them anything is a "crazy amount". I guess I'm going to show my ignorance here but I had no idea that crap like that was going on in this business. It wouldn't surprise me if you said you had to pay it in cash each month.

I hope you have a personal computer at home that you are entering all of your clients and prospects in.

I have heard of general agents who own an agency screwing over agents with that kind of crap but not an insurance company. I guess I have had my head in the sand. I think I will probably keep it there also. It pisses me off just to hear that. That ain't right!
 
I am a current Met Rep and have come to realize that when I come off the company financing (2 1/2 years service) my office expense will be around $280 per week. :swoon:

This includes my cube, use of office technology and meeting rooms, and admin expense. The admin keys in our applications and orders the para med exams but I really don't feel like this is worth 15k per year. When I questioned my manager and others in the office they all seem to think that this is industry standard. When I interviewed with the big 4 mutuals they did say there was an office expense but nowhere near what I am looking at now.

What does your office expense look like? Am I wrong to feel like this is a crazy amount for what I would be getting?

That seems like a lot of money. Are you really in some high rent district? Can you give up the cube and work from home?
 
with that kind of cost, you could have your own office elsewhere. I moved out of NYL after 6 months for a couple of reasons.. If I was paying the rent, it had better be something I wanted to pay for. The in house environment wasn't condusive to staying in the business. I lasted 10 years with nyl, if I had stayed inhouse, it would have been 1.

You can find better for less and even if you can't, if you're gonna drop 1200 a month for overhead, make it something you want.

It sounds like to me, you are subsidising an office. Move out.
 
That seems like a lot of money. Are you really in some high rent district? Can you give up the cube and work from home?

I'm in Central Jersey so rent is pricey, but not that pricey. I am not able to give up the cube. I do keep a separate personal computer with client demographic info at home. I am a firm believer of "beginning with the end in mind" and I'm not sure I can justify this expense :nah:. By the way they don't ask me to pay in cash, it is a payroll deduction.
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$150/mo.
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I fax my own app to the appropriate place and do my own paramed scheduling. Bascially it takes about 2 minutes for the faxing and 30 seconds for the paramed scheduling. I would definitely do it for everyone in the office for $15K per year. I could get everyone's done in about 20 minutes.


Briko3,
May I ask what company you work for?
 
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The rate varies a lot from company to company, but the concept of paying for your desk is pretty standard. This does seem high, but I wonder if they have rolled several other things into 'office rent' deduction.

Does this include things like copies?
Does it include your E&O insurance?
Does the admin answer your phone when you are not around?

Doesn't sound like there is much you can do to change this, so just remember come tax time to claim all of this.

Dan
 
I'm in Central Jersey so rent is pricey, but not that pricey. I am not able to give up the cube. I do keep a separate personal computer with client demographic info at home. I am a firm believer of "beginning with the end in mind" and I'm not sure I can justify this expense :nah:. By the way they don't ask me to pay in cash, it is a payroll deduction.
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Briko3,
May I ask what company you work for?


The point that many on here are trying to drive home is the fact that you work for a captive company. With the captive company you are taking a reduced comp already; hence, you are already paying for an office. A subsidy on top of the already lower compensation is ridiculous.

There are also many other considerations when having an office; like:

Secretarial staff
office furniture
office equipment
electricity
water
cable
internet
phone

As it has been said try working from your home. I hope this helps...........And good luck!



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The rate varies a lot from company to company, but the concept of paying for your desk is pretty standard. This does seem high, but I wonder if they have rolled several other things into 'office rent' deduction.

Does this include things like copies?
Does it include your E&O insurance?
Does the admin answer your phone when you are not around?

Doesn't sound like there is much you can do to change this, so just remember come tax time to claim all of this.

Dan

This does include all office technology copiers, printers, paper and telephony/voicemail. E & O is separate and nobody answers my phone. Admin staff keys in applications only. When my book is large enough I can hire my own admin that answers my phone and keys applications and does some marketing but I'm not there yet.
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As it has been said try working from your home. I hope this helps...........And good luck!



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I'm a Registered Rep so the B/D has to supervise. Working from home is not an option, man I wish I could.
 
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When I was with NYL its was a similar deal except that the cost was much more reasonable...You start out in the bullpen with a lot of other rookie agents you had access to the 1 company computer and the conference rooms the office receptionist would greet your clients if you had any come to the office cost was mainly your phone expense you had a direct line which was nice because you could move out of the branch/district office into something of your own if you desired. You could move up to one of the offices for more coin.


Oh about being a Registered Rep and it not being possible to move out of the office...Its your principal that doesn't want to let you opporate out of home...I'm an independent operating out of a home office my OSJ is 2 states away I travel there for meeting (sucks) and they sign off on all transactions...also up here in Maine all the Metlife Financial Resources agents work out of there homes and most of the regular met agents work out of homes...they may keep a cube in the main met offices but do to the distances involved making everyone work out of 2 or 3 offices statewide is not feasible.
 
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