$15k a Month Production Goal

[Nice to meet you]

Thanks again for your comments. just to clarify, its $15k per MONTH, in GWP, with 50% new business, 15% renewal. This is all first year. Second year- the base salary goes down by $5k, but new business renewal goes up to 60% and renewal stays the same. on the third year, the base drops by $10k and the new business is 75% and renewal stays the same. As I mentioned earlier, I'm a rookie producer, but I have been in sales and marketing virtually all my life. SO IS THIS OBTAINABLE? Thanks.

 

[djs]

I think you might be misunderstanding the payment structure.

You have $15K in GWP quota per month. The agency will earn from 10-15% commission on that premium, paying you half of what they earn. So if you sell the full 15K, at 10% commission, you'll earn 50% of $1500, or $750, plus the 1/12 of the $30K base ($2500) for a total of $3250, provided the base isn't a draw against your commissions.

If you do the math, you can tell they need you writing well above the $15K GWP for them to make any money. Keep that in mind when you are having an off month. You'll really need to be writing closer to $30K, which will also improve you paycheck

Dan

 

[Nice to meet you]

base is totally separate from commission. Again its premium production of $15K per month.
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Also the principle agent hasn't mentioned anything about any 401k, health benefits and other perks. Do I need to bring that up to his attention or I need to assume he's offering it to me. And one thing, its a work from home position. Please let me know. Thanks.

 

[Guest]

I would NEVER work for 15% on renewals....

You need to clarify what you are saying.

 

[djs]

$30K base though for a producer. Not a bad gig really.

 

[Bertolinoins]

base is totally separate from commission. Again its premium production of $15K per month.
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Also the principle agent hasn't mentioned anything about any 401k, health benefits and other perks. Do I need to bring that up to his attention or I need to assume he's offering it to me. And one thing, its a work from home position. Please let me know. Thanks.

He didn't mention it because a 401k and benefits are probably not included. You are starting in an industry where 8 out of 10 new agents fail.

 

[Nice to meet you]

pls check my previous posts. thanks

 

[IEG12]

15k in GWP is absolutely nothing. In other words, it's absolutely attainable. 15k in commissions to the agency would be a different story. As someone mentioned above, 15k in GWP at 50% only nets you a commission of roughly $750 a month (assuming the agency only makes 10% commission, which may be a bit low)... not great. I would be much less worried about hitting the quota and more worried about how you would pay bills on less than $1,000 a month
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Just read your earlier post. How are you supposed to get this 15k? Do they supply you leads?

 

[secondcreek]

You need to ask what the office's average premium is for a home policy and an auto policy.

Then do a little projecting--for instance if the avg home is $700 and the avg auto is $500 then you can see that you are going to need at least 13-14 home and auto deals.

The trick to this business is getting people to send you referrals--think the golden goose rather than finding a golden egg--and the people who can send the referrals are mortgage people.

Do you have enough contacts to get 4 mortgage people to send you at least three deals a month?

Will the agency pay the bill for you to join the Realtors association and allow you to get actively involved?

Can you work the existing book cross-selling a new product to monoline clients?

Do you know any apartment managers at properties that require renters insurance?

Do you know how to ask questions that disturb people without coming across as bashing the current agent or company?

My gut feeling is 15k of premium is not done by the vast majority of new agents. I personally know lots of agents with 3+ years experience not producing at that level on a consistent basis. But is it doable? Absolutely.

I apologize for my disjointed comments but I hope they help.

 

[Nice to meet you]

I dont know if the agency is going to supply me with leads, besides coming up with my own contacts. Again, he's offering me $30K for the first yr, $25k, the second, and $15 K the third. Keep in mind the base is separate from commission. The commission are as follows: 1st year, new bus-50% with 15% renewal. 2nd year, new bus-60% with 15% renew, and 3rd year 50% with 20% renewal.
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Nice to meet you;511127]I dont know if the agency is going to supply me with leads, besides coming up with my own contacts. Again, he's offering me $30K for the first yr, $25k, the second, and $15 K the third. Keep in mind the base is separate from commission. The commission are as follows: 1st year, new bus-50% with 15% renewal. 2nd year, new bus-60% with 15% renew, and 3rd year 75% with 20% renewal.