Agents Who Sell PCLH, What Would You Pay a New Producer?

[NCAgent]

At the advise of reading on the forums here, I found an agency that will let me work at a producer for them. I'm new to the field but have done a little bit of research. I'd be doing cold calling right now for them to reach out on some leads they can't handle right now to try and increase the book of business. They handle mainly commercial but also do personal lines as well.

What is reasonable to ask for compensation from this agency for what I do? I would probably cold call P&C right now and then L&H when I get the license to do so. They are training me from the ground up; I would learn how to sell their products, probably how to write them all and deal with underwriting, learn the ways to get an office running, all of that jazz. Of course, this is assuming that I bring them money in and keep them happy

So keeping in mind that I'm learning all of these things from them (which is what we talked about on the phone interview) I know I should be expecting some lower commissions and whatnot. It's the cost of education and I'm still able to make some money and learn what system works for me.

What sounds right to ask for in an employment contract as a 1099 worker? The commission rates are different for each kind of policy in P&C and L&H. Aside for commissions, should I be able to ask for anything else like writing in my own name, working under their E&O or anything like that? There are no benefits or salary with this job.

 

[jhuang]

If you are writing under their E&O, you're most likely not going to get the write under your own name.

Chances are, you're not going to get benefits either unless you are a high producer for the agency.

I wouldn't expect much, just be able to pay your bills if you do work however, that's the cost of learning a business under someone.

 

[NCAgent]

Okay so the initial question still comes up of what commission sounds reasonable for producing under them? I'm wanting to include the cost of education in there as well but I don't know whats fair to ask and what is me needing to run away and find someone else to go to.

 

[jhuang]

Unfortunately, that's not an easy answer. The owner wants to pay the least and you need to make a living. Find a happy medium and go from there.

 

[TwiLight]

Sounds like you are joining a P&C agency. If you are 1099, walk away. Most P&C agencies will bring you in on Salary + Bonus ($25-30k) and would be working in their personal lines area.

Even a Commercial Agency will pay a producer a small Salary + Commission. It is all negotiable as to what you can bring to the table for that agency.

Any P&C Agency that pays 1099 to a newby is just setting you up to fail and get cheap leads.

Now some P&C Agents will hire experienced L/A&H agents as a 1099 to work their book of business. The normal split seems to be 50/50 to 60/40 (in agents favor) with the Agency. However, a P&C Agency usually will not give you a direct contract and will keep all commissions if you leave.

TwiLightFinancial.com
Building a Better Plan for Seniors....

 

[NCAgent]

Sounds like you are joining a P&C agency. If you are 1099, walk away. Most P&C agencies will bring you in on Salary + Bonus ($25-30k) and would be working in their personal lines area.

Even a Commercial Agency will pay a producer a small Salary + Commission. It is all negotiable as to what you can bring to the table for that agency.

Any P&C Agency that pays 1099 to a newby is just setting you up to fail and get cheap leads.

Now some P&C Agents will hire experienced L/A&H agents as a 1099 to work their book of business. The normal split seems to be 50/50 to 60/40 (in agents favor) with the Agency. However, a P&C Agency usually will not give you a direct contract and will keep all commissions if you leave.

TwiLightFinancial.com
Building a Better Plan for Seniors....

Like I stated initially, I would be doing cold calls to start with P&C only. That is all I am licensed for at this moment. I am in the process of getting L&H and then I will be cold calling for that as well I believe.

Thus far this is the only place that has given some intent to train me without giving me the sales BS of opening my own agent shop or becoming part of a franchise. I'm just wanting to learn the ropes on how to run an agency so I can start my own one day, and also learn about the various products available for commercial and personal lines.

I've got sales talent but it also needs to be refined and trained for insurance; I also need to get starting in P&C under someone else so that I can get my own appointments with P&C companies and learn how to assess risk for policies to write.

I know I'm not the most ideal agent starting off but I have a list of things I know I want to get out of this experience and I feel if I need to get paid 1099 commission only but learn how to be my own boss in a year or so, it'd definitely be worth it to me

Oh and I forgot to mention; there are a bunch of leads being generated from the business. While that sounds sketchy, the reason they offered me 1099 to be there in the first place is that they are hitting a few new marketing approaches but their other person is tied up with current business. I would be there to pick up the slack. The guy didn't initially offer me 1099. He said he can't justify paying for another employee to work in his office; I responded that I want to learn the business and get some appointments so if I need to be 1099 commission only to do so, then that is what I'll have to do. I can produce my own leads as well if I desire but I'd mainly be cold calling leads already generated for the business.

 

[FL P&C Broker]

Sounds like you are joining a P&C agency. If you are 1099, walk away. Most P&C agencies will bring you in on Salary + Bonus ($25-30k) and would be working in their personal lines area.

Even a Commercial Agency will pay a producer a small Salary + Commission. It is all negotiable as to what you can bring to the table for that agency.

Any P&C Agency that pays 1099 to a newby is just setting you up to fail and get cheap leads.

Now some P&C Agents will hire experienced L/A&H agents as a 1099 to work their book of business. The normal split seems to be 50/50 to 60/40 (in agents favor) with the Agency. However, a P&C Agency usually will not give you a direct contract and will keep all commissions if you leave.

TwiLightFinancial.com
Building a Better Plan for Seniors....

Completely disagree. Our system is set up for our producers to be 1099. They get a better percentage, vested interest in their book after 5 years and don't worry about being micromanaged.

 

[TwiLight]

Completely disagree. Our system is set up for our producers to be 1099. They get a better percentage, vested interest in their book after 5 years and don't worry about being micromanaged.

I was just giving you the vast majority of P&C Agencies up North. Assuming you have a minimum of 10 employees.

Under 10 employees at an agency is more likely to 1099 due to revenue restrictions. Can't afford a salary for everyone looking for a job now can they.

That is my experience... My affiliate company RapidChex.com is one of the largest payroll companies in the US and primarily offers its product through P&C Agencies and 80% are 10+ employees in the agency on a national market basis.

TwiLightFinancial.com
Building a Better Plan for Seniors....

 

[GOVERNER]

Completely disagree. Our system is set up for our producers to be 1099. They get a better percentage, vested interest in their book after 5 years and don't worry about being micromanaged.

Please expound on your system. I am expanding my agency and need ideals as as to how to structure contracts.

 

[FL P&C Broker]

Please expound on your system. I am expanding my agency and need ideals as as to how to structure contracts.

Agents are 1099 commission only. They work when they want. We give them access to the carriers and if they need it; leads, office space, phones, etc. The only way for this to work is to be very selective who bring on. I do the opposite what most recruits do; I tell them how hard it is going and that they will make very little money the first 18 months.