What would be a realistic goal for a new p & c agent? I have my life and health license but i was thinking about transitioning into p & c as well. I know all of the steps to take, e&o, appointment process, office space, etc.. With that said, if marketing is done right, how many policies and what kind does an agent have to sell to make, say, 1k a week. Should it be auto or home. For example, with health or life, you may have to sell 2 or 3 policies to make an average of 1k depending on AP. However, with the lower commission that p & c pays, What is a realistic goal to make this amount. Or is that the wrong focus? Just focus on renewals and building clientele.
P&C is all about building a residual business, not so much the upfront commission.
You don't have to write any to make $1K a week, if you wrote the right amount last year. Also, the question is somewhat geographically different, but I'll take a stab at this.
Typical homeowner premium: $1000 a year/ $200 NB commission, $140 renewal commission.
Add auto to the household, 2 cars, 1 newer, one older, $2000 a year for both cars, $200 commission.
Total per house: $400 NB and $340 renewal / year. Can be much higher, or lower, but this is a decent number to work with.
In new business, you'll need 3 households a week, or 9 policies. Very doable, but you are hussling a LOT to write this much business.
If you keep the business, you'll automatically make your number next year.
Oh yeah, think in terms of months, not weeks. I don't think any P&C company pays weekly, though I could be wrong.
Keep in mind that the easiest way into the home is through the garage door. Once you prospect and write the auto, the life and other lines are much easier.
Seems to me that I wrote around 125 P & C apps my first year in the business and around 60 life/annuity apps. The bulk of my first year pay was life comm. That was 22 years ago and before the day of annualized comm. My first year averaged out to around 750wk at 1980's dollars so 1K/week should be very possible. Good luck
P&C is all about building a residual business, not so much the upfront commission.
You don't have to write any to make $1K a week, if you wrote the right amount last year. Also, the question is somewhat geographically different, but I'll take a stab at this.
Typical homeowner premium: $1000 a year/ $200 NB commission, $140 renewal commission.
Add auto to the household, 2 cars, 1 newer, one older, $2000 a year for both cars, $200 commission.
Total per house: $400 NB and $340 renewal / year. Can be much higher, or lower, but this is a decent number to work with.
In new business, you'll need 3 households a week, or 9 policies. Very doable, but you are hussling a LOT to write this much business.
If you keep the business, you'll automatically make your number next year.
Oh yeah, think in terms of months, not weeks. I don't think any P&C company pays weekly, though I could be wrong.
Dan
Thank you.. I am starting up an independent agency, with 5 carriers. Your example really puts things into perspective. Thank You!!
I really don't see any reason to quote only auto or only home unless they don't have one of them. So quote them together and quote them often. You can make a living just doing that and nothing else.
Realistic Goal for P & C Agent
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