New Agent Pay Question

[billberry12]

My son is contemplating going to work for an independent insurance agency.

What would be a realistic salary/commission combination for him to ask for?

They offered him 50% of new business commissions and 25% of renewals. Should he expect a salary with this, or a draw on commissions or what. Any help is greatly appreciated.

What is the standard offer?

Thanks,
Bill

 

[Derrick]

Maybe I just got put into a unique situation but I got a guaranteed salary for 2-3 years of $26,000 and health benefits until my book commission surpassed that amount, at which point I got 60% new and 50% renewal.

 

[GXR2]

Maybe I just got put into a unique situation but I got a guaranteed salary for 2-3 years of $26,000 and health benefits until my book commission surpassed that amount, at which point I got 60% new and 50% renewal.

Is that 60% of the written premium or 60% of what the carrier pays the agency?

 

[Derrick]

Is that 60% of the written premium or 60% of what the carrier pays the agency?

60% of what the carrier pays the agency

 

[Arnage150]

Maybe I just got put into a unique situation but I got a guaranteed salary for 2-3 years of $26,000 and health benefits until my book commission surpassed that amount, at which point I got 60% new and 50% renewal.

That's a very good deal. Did you have sales experience or bring a client list?


50 new and 25 renewal with no base is pretty bad. 50/50 or 60/50 would be the norm.

 

[Derrick]

That's a very good deal. Did you have sales experience or bring a client list?


50 new and 25 renewal with no base is pretty bad. 50/50 or 60/50 would be the norm.

I had sales experience. I did captive life and health for two years and owned a business all through college. Plus the owner knows the struggle of first year agents on nothing but commission as he earned $58 his first year in 1972.

 

[GXR2]

60% of what the carrier pays the agency

For example, How much do you make on ...

$1,000 NBP
$1,000 RP

How are you bringing business in the door?
Is the owner providing leads?

 

[Derrick]

For example, How much do you make on ...

$1,000 NBP
$1,000 RP

How are you bringing business in the door?
Is the owner providing leads?

Well depends what the rate is but simplicity sake let's say it's 15/12 on NB and RP respectively. After the agency takes their cut, I'd make $90 on NB and $60 on RB.

 

[Beachguy]

My son is contemplating going to work for an independent insurance agency.

What would be a realistic salary/commission combination for him to ask for?

They offered him 50% of new business commissions and 25% of renewals. Should he expect a salary with this, or a draw on commissions or what. Any help is greatly appreciated.

What is the standard offer?

Thanks,
Bill

Where are you Bill ?

 

[AllstateMaine]

I got a similar deal when I started as Derrick. Had experience in LHA and transitioned to P&C for a salary of almost $27K, health/vision benefits, $50K Basic Term Life policy and 50/50 splits on new and renewal. I was also paid through AS training and appointment. Reimbursed for materials and testing fees once I passed. Agency provides telemarketing, office space and support as part of the deal. Probably spend 10 percent of my week playing CSR/added agency support; which isn't a big deal and helps me meet/talk to out 1600 policyholders. To answer Bill's question, have your son negotiate some salary or hourly to start. Does he have sales experience? Insurance is a totally different animal.