First Year Premium Sales

Kremnuts

New Member
5
I work for a a small town insurance agency. We have 3 producers 2 owners and 3 Csr's. I just finished my first year and wanted to know if 265k in new business is decent and what should I expect to make from that. Any help would be appreciated.
 
Are you bringing in the business? Do you get a salary? are you buying leads? too many variables to make any judgements here.
 
Are you bringing in the business? Do you get a salary? are you buying leads? too many variables to make any judgements here.

I brought in 141k of premium. Yes I get a salary of about 22,000 a year. I am not buying leads. We get no renewals either.
 
I brought in 141k of premium. Yes I get a salary of about 22,000 a year. I am not buying leads. We get no renewals either.
Assuming 15% first year commission, your $141k would make the agency $21,150. Congrats on almost covering what they're paying you. I'm not trying to be a jerk, I just want to point out how thin the margins can be with P&C. Keep in mind that the principal still has to pay the csr's, keep the doors open, and the lights on. I know you mention $265k total, of which I'm sure you made some commission on, is a decent year for a personal lines producer, but the principal won't be running out to buy a beach house with the proceeds.
 
So the owner almost broke even and will more than break even next 15 yrs on the renewals.

I am not taking sides. I am with Ins1822. Give us all the variables and then we can judge. HAHA!
 
In my market that would be like 14 policies per month & no that's not good. It's also not "bad."

How long have you been in this business? The important part is understanding what you did to bring in that premium. What activities generated those sales & then how do you double..triple those activities to have the same outcome on sales.

If the agency did 265k and you did 141k then the rest of the office is worthless.


Hey Verbgravy...would you buy a book for essentially 1.1x? I sure would & that's basically the deal he's getting. I'd pay 100 producers 22k to get 141k/year in premium out of each..what r u nuts>?
 
In my market that would be like 14 policies per month & no that's not good. It's also not "bad." How long have you been in this business? The important part is understanding what you did to bring in that premium. What activities generated those sales & then how do you double..triple those activities to have the same outcome on sales. If the agency did 265k and you did 141k then the rest of the office is worthless. Hey Verbgravy...would you buy a book for essentially 1.1x? I sure would & that's basically the deal he's getting. I'd pay 100 producers 22k to get 141k/year in premium out of each..what r u nuts>?

I don't disagree, I just wanted to make sure OP understood the numbers. I'm simply trying to point out that the owner isn't holding much back from what he's paying out on the front,
 
I don't disagree, I just wanted to make sure OP understood the numbers. I'm simply trying to point out that the owner isn't holding much back from what he's paying out on the front,

I have a producer that just completed his 2nd year and he's at $575,000 ($75k commission). So I don't think you are far off with sales.
 
I'll answer that Verbgravy

Hell Yes I would! All day long!

So what does that say about the agents deal?

You seem to have forgotten about all the other costs that go along with having a producer. Taxes, insurance, office space, supplies, etc.
 
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