$15k a Month Production Goal

[joshb]

I agree with Hefe, definitely try to give up some base, to get the renewals up a little bit. The renewals are where you make money with P&C. In regards to the production goal, that isn't too difficult, but it depends on what the average policy premium is. Also you will want to sell annual policies for auto, a 6 month policy is half the premium.

 

[tjeyoyo]

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.

So looking at this model which is fairly accurate in my opinion, the agency will make $225,000 commissions in 4 years (assuming 12.5 avg comm and 100% retention). They are paying the producer $152,125 and keeping $72,875. This is a smoking deal for any producer and a HUGE investment for the agency. If it works out, they may make some profit after 8-10 years, but that's a big risk. If you can get this deal, take it.

 

[joshb]

So looking at this model which is fairly accurate in my opinion, the agency will make $225,000 commissions in 4 years (assuming 12.5 avg comm and 100% retention). They are paying the producer $152,125 and keeping $72,875. This is a smoking deal for any producer and a HUGE investment for the agency. If it works out, they may make some profit after 8-10 years, but that's a big risk. If you can get this deal, take it.

I disagree, its only a good deal in the short term. The OP needs to be thinking about his long term goals, and where he wants to be in the future, I still say lower the base and increase renewals if you have any wiggle room.

 

[Nice to meet you]

I disagree, its only a good deal in the short term. The OP needs to be thinking about his long term goals, and where he wants to be in the future, I still say lower the base and increase renewals if you have any wiggle room.

Any ideas as to where should I start to find new business for home and auto? I'm brand new in this industry. Open to any suggestion.

 

[joshb]

Any ideas as to where should I start to find new business for home and auto? I'm brand new in this industry. Open to any suggestion.

I say start with networking. Also join a BNI group. my group keeps me pretty busy. I also say leads, a lot of people don't like leads but when worked correctly can be very good. Networking being the best way i think.

 

[Nice to meet you]

is there a popular website to advertise insurance?

 

[Bertolinoins]

Take it and get everything in writing before the agency owner realizes what he is doing.

 

[Nice to meet you]

Take it and get everything in writing before the agency owner realizes what he is doing.

Ok. Its almost time for my annual review and I done $100k in annual premium last December and my current premium in new is $115k. I was wondering if I could ask to work for home may be 2 to 3 days out of the week?

 

[WinoBlues]

Ok. Its almost time for my annual review and I done $100k in annual premium last December and my current premium in new is $115k. I was wondering if I could ask to work for home may be 2 to 3 days out of the week?

Sure, go ahead. Check in on Mondays and Thursdays. Come in once a month. See you in April.

 

[Nice to meet you]

Ok. Its almost time for my annual review and I done $100k in annual premium last December and my current premium in new is $115k. I was wondering if I could ask to work for home may be 2 to 3 days out of the week?

My review is coming up in April and I wrote $100k by december 2012. And now its about $15k till March. My question is would it be wise to ask my principal managing agent if I could work from home may be 2 to 3 days out of the week?