Agents Making Little to No Money... How / Why?

[BrokeLoser]

Wellll. a policy a day as a reserve agent might gross him a whopping $20-$60 on an auto. I really doubt he is either doing it or can maintain it, but they may be handing him walk ins and serving up business. DM's will tell you what you want to hear and go along with about anything when you are a reserve agent as they are setting the stage and the hook to make you a career agent.

Good luck, but realize if you think the amount of money your buddy is 'making' is acceptable, you will be an average agent pulling in $24k a year and will fail. I hit all the numbers, sold more than enough life to qualify for the awards and after the advances and commission matches I still owed them money after a 'successful' year.

Have him run a quote for you and then get quotes from the major competitors, including Geico and Progressive. Farmers rates suck almost everywhere and you will be selling what is best for the agent, not the client.

When I said; "a policy a day" I guess I should have said; "a policy holder a day". He said he's making between $300 - $400 per deal...all personal line p&c so far. He hasn't got a single deal given to him. In his words; he's planted and harvested every one. Don't get me wrong; $1,500 - $1,600 per week isn't amazing money either, but for 21 days in the biz that's still a far cry from what you'd think one could earn if you read around here. I asked him about Farmers rates being on the high side, he said they're actually quite competetive with most scenario's, the exception really only being the 22 year old with a DUI. He said; "I don't sell rates anyway, I sell a service and insurance coverage." Bare in mind, he's only been at it for 21 days....I'm sure he hasn't seen it all.

 

[patch36]

10% for auto and 20% for home. 2 cars and a house a day might yield $300.

P&C has become a commosdity. Good luck to him. the money is in lots of them on the books and the residuals, which takes years, or in big ticket life. Farmers agents not selling lots of life will starve.

 

[OHInsAGNT]

he has averaged one policy per day since he actually started working.

If he is selling one P&C policy per day, he's taking home less than $20K after the $450 expense. Remember, success has a different definition to different individuals.
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He said he's making between $300 - $400 per deal...all personal line p&c so far.

This seems like an exaggeration. I don't know the rates in California though. I'd say between $100-$200 per sale is more realistic on a 10% captive contract.

 

[BrokeLoser]

If he is selling one P&C policy per day, he's taking home less than $20K after the $450 expense. Remember, success has a different definition to different individuals.
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This seems like an exaggeration. I don't know the rates in California though. I'd say between $100-$200 per sale is more realistic on a 10% captive contract.

Hmmm....so you've tweaked my math and called my friend a liar all in one post....nicely done. Entertained?

 

[djs]

Guys -

This isn't that hard. A single household, with a house ($150 avg commission at 20%) and 2 full coverage autos ($100 avg commission at 10%) gives you $350 a day.

$350 a day times 20 days a month = $7K a month, not counting residuals (which don't exist yet) or expenses.

Writing a household a day is a challenge. It's doable, but a challenge. Probably easier early on, though doing it your first month is amazing.

Dan

 

[beatuplunchbox]

One of the funniest DSLs I worked with at the captive agency that I started off with summed it up correctly one day when his team was not nearly meeting their production goals as to why a lot of agents fail:

"All I have got here is 14 insurance executives and not one salesperson!"

Too many new agents chase their rear ends by spending too much time doing non revenue generating activity (shuffling papers, arranging their work areas just so, trying to figure out the newest way to generate leads etc.) instead of actively prospecting and selling.

 

[BrokeLoser]

Guys -

This isn't that hard. A single household, with a house ($150 avg commission at 20%) and 2 full coverage autos ($100 avg commission at 10%) gives you $350 a day.

$350 a day times 20 days a month = $7K a month, not counting residuals (which don't exist yet) or expenses.

Writing a household a day is a challenge. It's doable, but a challenge. Probably easier early on, though doing it your first month is amazing.

Dan

Thanks djs....didn't know it needed to be spelled out. To go even further because it seems needed; one of his deals last week looked like this: Husband and wife - home, 3 autos, 2 commuters and a pleasure...a motorhome policy....2 kids, both with autos...1 more house in Bass Lake, CA, another auto kept there and a boat. Now, how much would you make on this one deal? I know it seems far fetched to some especially the ones sitting on their hands staring at their phone waiting for it to ring. These scenarious are all around us and I believe this is the sh*t you find when you keep looking for it....
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"All I have got here is 14 insurance executives and not one salesperson!"

Too many new agents chase their rear ends by spending too much time doing non revenue generating activity (shuffling papers, arranging their work areas just so, trying to figure out the newest way to generate leads etc.) instead of actively prospecting and selling.

That's hilarious...and spot on too.
I've seen it over and over again. Guy sits there all week adjusting and readjusting everything on his desk. At the end of the week you bump into him leaving the office and he says; "Man, things are slow."...WHAT...how would you know that? People will spend time doing things that for what ever the reason make them feel like they are atleast attempting to be productive; checking the fax and emails, talking about the biz, paper shuffling...etc and then suddenly the weeks over and there's no REAL production. At the end of the day they are really just scared to actually WORK, afraid of the rejection, afraid to fall short of 'goals'...etc. Bottom line, SALESMAN SELL and thrive on the chase of the next deal....Watch out for executive-itus!

 

[OHInsAGNT]

Hmmm....so you've tweaked my math and called my friend a liar all in one post....nicely done. Entertained?

No, honestly just trying to help. People have a tendency to be stretch the realities a bit when telling you what a great opportunity there is in insurance. This is especially true if they stand to gain an override. The most important part of the deicision is to be realistic, not optimistic....

 

[GetInsurance]

You seem to know some serious details about your "friend's" production and workday.

 

[patch36]

Dr., I have this friend who told me it burns when he pee's. Do you have any advice and medicine I can pass on to him?