Allstate interview on monday

[Mtangler]

Greetings,

This is my first post. I am an entry-mid level experienced sales professional. I have no insurance experience, however, it has been a goal of mine to get into the insurance business and I want to launch my career the right way.

Per my headline, I have an interview with an Allstate agent on Monday morning, I believe the agency owner is relatively new to being an owner, however, per his LinkedIn profile he has 5 years of experience with Allstate. I believe he has owned the agency for 2 years. Of course, the long-standing agencies in town aren't hiring...

I have been doing lots of research about working at Allstate, definitely a mixed bag of reviews. However, I am hoping to get some up to date information about being an LSP at Allstate.

My questions are:

What is the ACTUAL base salary? I have seen maybe posts that say it's around minimum wage... REALLY? the job posting says salary is $45,000 - $70,000.. I take the term salary with a grain of salt.

Another question I have is the actual commission structure, is there a certain quota that has to be hit in order to receive a commission for the month? If so, I feel like that is wrong.

What is the actual commission percentage, and is there the opportunity to earn commission on renewals?

Is this a place to launch a career, and make a solid income from $70,000-$100,000, learn the business and one day own an agency? Or is it the opposite... a place to get licensed, get experience and then go elsewhere?

I appreciate everyone's time spent answering my questions. Thank you!

 

[fed up]

Mtangler, I just left Allstate after 6 years working for 4 different agents and having interviewed with at least a dozen. All of your questions should be answered by the agent you are going to work for since he is an independent agent, an Exclusive Agent or Independent in the Allstate family. to answer your questions:

1) depends on the AGENT but most I worked for were in the 25-35 range. Some agents bring producers on as commission only and you pound the phone all day in an effort to sell something. If you don't produce you won't be around long and most only pay on the initial business, not on the renewal. Can you make 45-70? It is possible but not probable

2) Many post unrealistic numbers about what needs to be sold before commission kicks in if you are on a base salary. Many have a number of 10-25,000 in business before any commission and then 5% or so of what you write above that number figuring that your base is covered by the 25,000 starting number. A few will pay commission on everything you sell but those agents a few and far between.

3) It is a place to learn the business. Allstate does an excellent job of education if you ask questions and put in the time to learn. Very few agents have anyone grossing 100K as a staff member. If you can become an agency manager you MIGHT get into that range. Allstate will be glad to let you have an agency of your own. You just need 100K liquid capital (That is just to be appointed) and the ability to get a loan in order to buy a book of business. Scratch agents rarely make it and the ones who do are usually cheating somewhere.

 

[Mtangler]

Mtangler, I just left Allstate after 6 years working for 4 different agents and having interviewed with at least a dozen. All of your questions should be answered by the agent you are going to work for since he is an independent agent, an Exclusive Agent or Independent in the Allstate family. to answer your questions:

1) depends on the AGENT but most I worked for were in the 25-35 range. Some agents bring producers on as commission only and you pound the phone all day in an effort to sell something. If you don't produce you won't be around long and most only pay on the initial business, not on the renewal. Can you make 45-70? It is possible but not probable

2) Many post unrealistic numbers about what needs to be sold before commission kicks in if you are on a base salary. Many have a number of 10-25,000 in business before any commission and then 5% or so of what you write above that number figuring that your base is covered by the 25,000 starting number. A few will pay commission on everything you sell but those agents a few and far between.

3) It is a place to learn the business. Allstate does an excellent job of education if you ask questions and put in the time to learn. Very few agents have anyone grossing 100K as a staff member. If you can become an agency manager you MIGHT get into that range. Allstate will be glad to let you have an agency of your own. You just need 100K liquid capital (That is just to be appointed) and the ability to get a loan in order to buy a book of business. Scratch agents rarely make it and the ones who do are usually cheating somewhere.

Thank you for your reply and I really appreciate your in-depth response.

I am not in insurance at the moment but I am in sales. It seems bizarre to me that a company would make it so difficult for their sales reps, [people who should be making the most because they keep the business coming] to make a good living.

I should mention that I applied at a different Allstate agency last night, to go into detail, this is THE agency in our area. I am acquainted with the owner, she is the real deal, she has owned the same agency for over 30 years and has hundreds of 5-star reviews. The agent I have the interview with only has one. Yesterday I literally said to myself "ugh I wish she was hiring" then I checked a job board last night and sure enough she had just posted a position for a sales producer.

In her post, she actually lists the hourly rate she is willing to pay $20-$22/hour. I am not sure how this stacks up against what you have experienced but it is far more than everything I have read. Now, I have a $50k base at my current job but no commission, just bonuses. So a $22/hour base rate would be an $8k decrease in the base but there is obviously a chance to make commissions.

I eventually want to own my own business, I have ambition. I want to find a place to truly learn but also make a good living while I do that. Is Allstate the place for me?

 

[fed up]

Thank you for your reply and I really appreciate your in-depth response.

I am not in insurance at the moment but I am in sales. It seems bizarre to me that a company would make it so difficult for their sales reps, [people who should be making the most because they keep the business coming] to make a good living.

I should mention that I applied at a different Allstate agency last night, to go into detail, this is THE agency in our area. I am acquainted with the owner, she is the real deal, she has owned the same agency for over 30 years and has hundreds of 5-star reviews. The agent I have the interview with only has one. Yesterday I literally said to myself "ugh I wish she was hiring" then I checked a job board last night and sure enough she had just posted a position for a sales producer.

In her post, she actually lists the hourly rate she is willing to pay $20-$22/hour. I am not sure how this stacks up against what you have experienced but it is far more than everything I have read. Now, I have a $50k base at my current job but no commission, just bonuses. So a $22/hour base rate would be an $8k decrease in the base but there is obviously a chance to make commissions.

I eventually want to own my own business, I have ambition. I want to find a place to truly learn but also make a good living while I do that. Is Allstate the place for me?

the most I ever made as straight salary with an Allstate agent was 35K and the promises which were not kept had me looking for a new job within 2 months. I was with an Allstate Dealership Agency (auto dealer program) and was told that the dealership averaged over 60 cars a month which were all potential customers. They sold 30 cars in July 2017 total and Allstate prices for the area could not compete for business.
I have been offered as low as 10K and as much as 18.00 per hour but that agent closed for lunch each day for an hour so I could only work 35 hours. The dealership program wanted me to work 7 days a week so that I was there if they had a deal in progress.
I would be curious if your agent is straight 22/hour with no experience or that is a combination of salary and possible commission. Allstate is also rolling out a new plan called Integrated Services which requires agents to pay 2% of their BOB for a major call center which will service the client. Many agents are looking to reduce staff because of the added expense. The focus will be on sales in the agency and the main thought is that retention of customers will suffer.
It is a good place to learn the business and with the right mentorship you could become an agent someday but I doubt you will make the money you are looking for.

 

[Mtangler]

the most I ever made as straight salary with an Allstate agent was 35K and the promises which were not kept had me looking for a new job within 2 months. I was with an Allstate Dealership Agency (auto dealer program) and was told that the dealership averaged over 60 cars a month which were all potential customers. They sold 30 cars in July 2017 total and Allstate prices for the area could not compete for business.
I have been offered as low as 10K and as much as 18.00 per hour but that agent closed for lunch each day for an hour so I could only work 35 hours. The dealership program wanted me to work 7 days a week so that I was there if they had a deal in progress.
I would be curious if your agent is straight 22/hour with no experience or that is a combination of salary and possible commission. Allstate is also rolling out a new plan called Integrated Services which requires agents to pay 2% of their BOB for a major call center which will service the client. Many agents are looking to reduce staff because of the added expense. The focus will be on sales in the agency and the main thought is that retention of customers will suffer.
It is a good place to learn the business and with the right mentorship you could become an agent someday but I doubt you will make the money you are looking for.

That is interesting that you mentioned the call center, on the job description the term "call center experience" was listed. Just an interesting thing to note.

I appreciate your honesty, now if I may ask another question. As someone who has been in the insurance industry for at least 6 years (not sure of your previous experience outside of Allstate) how would you reccommend someone like me who is ambitious, wants to learn the business and eventually wants to be the boss. Should I start out with captive, or start out in an independent agency?

I should note, I have already interviewed with an independent agency and that is still in the works. The position is for a commercial lines account manager, it is a fully salaried position, I do not know those figures yet. But the agency has been in business for almost 50 years, many of the leadership and sales force has been there a long time (10+ years) would this be a feasible route to take when compared to the Allstate route? I know I don't have all of the information about the indi position, but that is where I am at.

Thank you again for your time!

 

[fed up]

That is interesting that you mentioned the call center, on the job description the term "call center experience" was listed. Just an interesting thing to note.

I appreciate your honesty, now if I may ask another question. As someone who has been in the insurance industry for at least 6 years (not sure of your previous experience outside of Allstate) how would you recommend someone like me who is ambitious, wants to learn the business and eventually wants to be the boss. Should I start out with captive, or start out in an independent agency?

I should note, I have already interviewed with an independent agency and that is still in the works. The position is for a commercial lines account manager, it is a fully salaried position, I do not know those figures yet. But the agency has been in business for almost 50 years, many of the leadership and sales force has been there a long time (10+ years) would this be a feasible route to take when compared to the Allstate route? I know I don't have all of the information about the indi position, but that is where I am at.

Thank you again for your time!

Wow, where to begin and not get slammed by the Forum. You stated that you have no insurance background or knowledge so working for an agent, getting paid while learning the business, and avoiding mistakes are paramount to being successful. 10+ years and I learn something new each day, mainly how much customers will fib in an effort to get something. Commercial insurance is a huge can of worms and not for a beginner. If your previous business experience has toughened your skin and you don't get down on yourself from refusal to even meet with you AND you have a team who will quote and bind any connections you make then by all means look at the commercial side. P&C insurance is pretty simple. You cover the car, the home, toys, and belongings. Commercial could mean a dozen different policies for one location. In commercial insurance I remember one adage:"Never try to BS a fly fisherman". If you don't know what you are talking about the client will know right away or you could leave them exposed to huge gaps in coverage.
If you work for a P&C carrier or independent for 2-3 years you might be in a position to branch out on your own, especially if the agent allows you to take the business you wrote as a start up book of business. (Not common)