$15k a Month Production Goal

[Hefe]

$15k in annualized gwp is certainly doable, maybe not right in the beginning but once you learn the products and process it will be.

The things I would make sure I had clear with the principle are: where are the leads coming from, who is responsible for servicing the policies, do you have an option to own/buy your book in the future, and what happens with the base salary if your production goal isn't met.

The base salary is uncommon, especially that much, but will be helpful in the early years while you learn the business and establish referral sources.

 

[Nice to meet you]

$15k in annualized gwp is certainly doable, maybe not right in the beginning but once you learn the products and process it will be.

The things I would make sure I had clear with the principle are: where are the leads coming from, who is responsible for servicing the policies, do you have an option to own/buy your book in the future, and what happens with the base salary if your production goal isn't met.

The base salary is uncommon, especially that much, but will be helpful in the early years while you learn the business and establish referral sources.

I think you've misunderstood me. Its $15k per MONTH in premium production.

 

[djs]

$15K in annualized gwp = $15K per MONTH in premium production. If you write a policy today for a $1000 in premium, that is $1000 towards your monthly target (even though its earned over the year) and its $1000 in GWP.

This will give you a total of $180K a year in gwp (provided no lapses). Very doable.

Dan

 

[JP Savage]

It is doable, so long as you have the leads. Big questions is, who is providing the leads and what kind of leads are they: cold call list, internet leads, etc.

 

[Nice to meet you]

Thanks. The number$15k/month just seems overwhelming, but he is letting use his previous clients and do cross-sell some from self generated contacts and of course referrals.

 

[djs]

$15K a month isn't hard, but, it doesn't just fall into your lap either. Of course, I'm assuming he has competitive carriers. If not, $15K a month can be very difficult.

You'll need to prospect, nurture leads, and drive the sale. $15K a month will be very doable once you get into the swing of it. Okay, the first month or 2, might be a bit more questionable, but after that, get into a system, follow your system, make minor tweaks as appropriate and keep going.

Dan

 

[Nice to meet you]

$15K a month isn't hard, but, it doesn't just fall into your lap either. Of course, I'm assuming he has competitive carriers. If not, $15K a month can be very difficult.

You'll need to prospect, nurture leads, and drive the sale. $15K a month will be very doable once you get into the swing of it. Okay, the first month or 2, might be a bit more questionable, but after that, get into a system, follow your system, make minor tweaks as appropriate and keep going.

Dan

He works with multiple carriers. I will certainly keep your advice handy. Thanks for all your help Dan.

 

[isgutah]

You should take the offer. This deal is way better for you than it is for the agency owner. With this structure it will take years before he breaks even having you as an employee. I would plan on contributing more than $15k per month if you want to keep the job.

 

[NCAgent]

Yeah that is a losing model with renewals really unless he plans on pushing you out later down the line. 15k in production isn't bad but eventually, like most things in P&C, your rates are going to go up Then it might be 20k, 25k, 30, or 50k. 15k isn't bad really to handle, but just make sure that in your contract he doesn't have the ability to just change things willy nilly.

Are you required to make a portion of that 15k in life premium? Or required to sell a certain amount of life in addition to 15k to reach that salary? Something doesn't sound quite right here...

 

[Hefe]

Another concern is income after the base salary is gone. Let's say you sell the exact $15k monthly goal every month, that means $180k in annual premium each year. I'm also going to assume 12.5% agency commission because that's the midpoint between 10 and 15%.

Year 1: $180k new x 12.5% x 50% = $11,250. Add in $30k salary and you're at $41,250.

Year 2: $180k new x 12.5% x 60% = $13,500. Your renewals will be $180k (assuming no cancellations which is impossible) x 12.5% x 15% = $3,375. Add in your second year base and you're at $41,875.

Year 3: $180k new x 12.5% x 75% = $16,875. Two years of renewals is $360k x 12.5% x 15% = $6,750. With a $15k base, you're at $38,625.

Year 4: $180k new x 12.5% x 75% = $16,875. Three years of renewals is $540k x 12.5% x 20% = $13,500 for a total of $30,375.

Cancellations will lower the renewal portion by 10-15%.

The base salary will certainly help in the beginning but its in both of your best interests for you to sell over $15k a month. If you're serious about.this long term it might be worth giving up a little base to get higher a higher renewal split.