I am new to the forum even though I have been lurking here for about a week. Seems to be a lot of good information on here.
My question is about a compensation package I have been offered.
Local P&C and L&H agent has offered me an opportunity to join his firm. I am currently L&H licensed but not P&C. As part of the agreement, I will have to get my P&C license. I have been selling L&H while keeping my full time job. He would like for me to leave that job and go full time with him. He has been in the business for quite a while and does fairly well.
He has offered me 1000 a month plus commission. With me receiving 50% of my P&C commissions, 50% of my life commissions and 60% of health commissions. The %'s will continue up on a scale maxing out at 80%. The grand will be available to me for 1 year.
I have to do certain amounts of contracts per month in each line.
Is this a pretty normal deal?
What type of commission can be generated off of the P&C per month or per year?
I am new to the forum even though I have been lurking here for about a week. Seems to be a lot of good information on here.
My question is about a compensation package I have been offered.
Local P&C and L&H agent has offered me an opportunity to join his firm. I am currently L&H licensed but not P&C. As part of the agreement, I will have to get my P&C license. I have been selling L&H while keeping my full time job. He would like for me to leave that job and go full time with him. He has been in the business for quite a while and does fairly well.
He has offered me 1000 a month plus commission. With me receiving 50% of my P&C commissions, 50% of my life commissions and 60% of health commissions. The %'s will continue up on a scale maxing out at 80%. The grand will be available to me for 1 year.
I have to do certain amounts of contracts per month in each line.
Is this a pretty normal deal?
What type of commission can be generated off of the P&C per month or per year?
Sounds good to me. I know of a couple of agents that would kill for that job.
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Mark Rosenthal aka markingriffin
IMO/Ins Agent/Agent Trainer/Free Advice markcrosenthal@aol.comwww.realfastservice.com
Please visit mywebsite to learn more about me.
Email me for my Free Prospecting MP3 Tapes.
In my part of the world ... those are very generous commission splits for P&C and about avg for L/H.
The reason you are getting generous first yr commission splits is the low guarantee of $1k.
Are you single?
What are you absolute min req's for income for the month?
You will likely need 90 days to generate any real $ from P&C commissions even if you sold yer arse off the first week .. carriers in P&C pay slow as molasses ... the commission cycle in P&C is much slower than life/health.
Whats the renewal %? The first yr doesnt mean jack in P&C - the business model in P&C is a POS for first yr because the real $$$ is the renewal income stream. Residual.
At tge right shop with the right support and lead flow - a producer can make a handsome P&C income at 40% new and 25% renewal - which is pretty customary. But if the shop has weak markets and poor staff where you end up working all the renewals yourself anyway ... 40/25 sux.
Make a deal for a 3-5 yr arrangement you can live with and the right to re-evaluate at the end of that time period. You will have learned the ropes by then.
The other thing for P&C is who owns the client? Is their a buyout for you or do they have to buy you out? Do you get any ownership in the book ... [ will vary based upon if they provide lead flow ]
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Steve Aylor
Insurance Referrals Solutions
I'd want to make sure the person you're dealing with is reputable, honest, knowledgeable, and a good businessman. A shyster who pimps you out for a year won't do you any good.
Other than that:
Does he have competitive carriers?
Do you get to own the business?
Is he making you sign a noncompete?
What expenses do you have to pay?
When are commissions paid? (as earned, annualized, etc) If you're only getting $1000 a month, you need your commissions asap.
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Silence is golden - Duct Tape is Silver
My original post, I was trying to hurry and I left a few things out.
I am securities registered as well he is not. I have another job. I have been working the securities and Life business as an independent part time for about 3 years. With only being able to work part time, I would guess my time in the business could be looked at as about 1.5 years of full time work.
I will get all commissions off of my securities he will get none. After 3 years if I decide to leave, he will give 100% of my P&C renewals, I will buy my health business at 50% and I will just receive my life clients.
There is no non compete. Commissions are paid every 2 weeks. I get same splits on renewals etc.
The big thing here is, I feel like that I need to get away from this other job. Make a nice living, been there 15 years, but people have me pigeon holed into that is what I do. Also, I have an office at my house. Not bad for all but I know some think this will be a short lived career for me because I haven't made the commitment to a full office.
He provides an office, mentoring on Life(been in the business 30 years) and he will allow me to work his existing clients for Life and Securities if they don't currently have that with him.
My big question: How long does it take to get P&C commission flowing?
What is realistic income in this type of arrangement? I know it depends on how hard you work at it. But what are some possible numbers.
XRac,
I see you over at the TGP website as well. You have some good insight into the business. Can this model work??
Thanks for the help!!!!
I was in a hurry when I put my original post on here. I tried to post a reply yesterday but something happened and it didn't show up.
First, I am securities registered as well. All securities commissions are mine. He is not securities registered. I get to prospect his P&C book for securities and L&H. His Life clients are for him.
I have been working in the business part time for about 3 years while continuing my other job which I have been at for 15 years. People have me pigeon holed into the job that I have held for a long time. Also, I have my office at my house. I know this works for some but I get the feeling my commitment to the business is questioned sometimes because I have not invested in setting up an office somewhere. This would provide me an office to be more credible to some people.
All renewals are paid using the same payout. Commissions are paid every 2 weeks. If after 3 years, I decide to leave. He will pay me 100% of my P&C renewals, I will buy my health at 50% and I will own my Life. No noncompete.
I am married with a couple of kids. Which makes this decisions hard. But I knew that someday down the road I would be swapping to full time and I didn't expect the pay to be the same as my regular job.(which is pretty nice income) My wife has a good job so that will help.
One question I do have, how much production does it take to provide a good commission income from P&C. I know it depends on how hard you work but what is a reastic number.
Xrac,
I see you over at the TGP website from time to time. You have a good insight into this business. Can this type of model work and will it provide a good commission stream??
Thanks for the help!!
I'm glad to know someone else is trying to work out offers. My situation is the opposite but I would greatly appreciate any feedback. We are a life and health agency that has been doing P&C for about 3 months. We have 2 good homeowners carriers (a couple more on the way) and 2 auto carriers. We have internet leads at our disposal.
Currently, I am about to make an offer to an agent to come on board with us as an agency manager/agent. This person will be responsible for selling and growing the business. We have found an agent but just haven't been able to formulate the right package (mostly b/c we just don't know the industry).
What we have been thinking of offering is a 6mth draw ($500/week), first year commissions at 60% and renewal at 50%, 50% benefits reimbursement and 15% ownership of the business based on production.
I would appreciate some feedback on this offer. If we are going to offer 15% ownership, what are good production levels to set?
I was in a hurry when I put my original post on here. I tried to post a reply yesterday but something happened and it didn't show up.
First, I am securities registered as well. All securities commissions are mine. He is not securities registered. I get to prospect his P&C book for securities and L&H. His Life clients are for him.
I have been working in the business part time for about 3 years while continuing my other job which I have been at for 15 years. People have me pigeon holed into the job that I have held for a long time. Also, I have my office at my house. I know this works for some but I get the feeling my commitment to the business is questioned sometimes because I have not invested in setting up an office somewhere. This would provide me an office to be more credible to some people.
All renewals are paid using the same payout. Commissions are paid every 2 weeks. If after 3 years, I decide to leave. He will pay me 100% of my P&C renewals, I will buy my health at 50% and I will own my Life. No noncompete.
I am married with a couple of kids. Which makes this decisions hard. But I knew that someday down the road I would be swapping to full time and I didn't expect the pay to be the same as my regular job.(which is pretty nice income) My wife has a good job so that will help.
One question I do have, how much production does it take to provide a good commission income from P&C. I know it depends on how hard you work but what is a reastic number.
Xrac,
I see you over at the TGP website from time to time. You have a good insight into this business. Can this type of model work and will it provide a good commission stream??
Thanks for the help!!
It sounds like a good deal but I would put it all in writing. If you follow TGP you know to always follow rule number one. Depending on how big his book of clients is do you think you will have time to work P&C if you are working his book for financial products? Will you be able to handle the service work on the P&C?
I'm glad to know someone else is trying to work out offers. My situation is the opposite but I would greatly appreciate any feedback. We are a life and health agency that has been doing P&C for about 3 months. We have 2 good homeowners carriers (a couple more on the way) and 2 auto carriers. We have internet leads at our disposal.
Currently, I am about to make an offer to an agent to come on board with us as an agency manager/agent. This person will be responsible for selling and growing the business. We have found an agent but just haven't been able to formulate the right package (mostly b/c we just don't know the industry).
What we have been thinking of offering is a 6mth draw ($500/week), first year commissions at 60% and renewal at 50%, 50% benefits reimbursement and 15% ownership of the business based on production.
I would appreciate some feedback on this offer. If we are going to offer 15% ownership, what are good production levels to set?
Looks like a good deal to me. I'd make sure you set activity and production goals to make sure you get your $500/week worth.
Looks like a good deal to me. I'd make sure you set activity and production goals to make sure you get your $500/week worth.
Seems like a good offer to me also. id make mimimum production requirements, as well as minimum recruiting requirements if you want said agent to truly grow your agency
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It means they want enough posts to send PMs. I can't knock it because I tried it when I started on here, but they took away all of my first 20 posts and I had to start over with REAL posts.
It means they want enough posts to send PMs. I can't knock it because I tried it when I started on here, but they took away all of my first 20 posts and I had to start over with REAL posts.
Need Some Guidance On An Offer
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