Allstate Licensed Sales Producer

rgeorgi3

New Member
11
Indiana
Hey everyone!

New to the site here and just wanted to see how our office compares to other offices.

Little bit about me I'm very new to the insurance business I think its been about 3 months here at a local office in Indiana. Also I currently only write P&C at this time, not quite sure if I want to go through training to get another license.

Basically the way our pay structure works is that we are paid a very low base salary ($8/hour) with a tiered commission structure. We dont make commission until we sell at least 25 items. Example if a family came in with two cars and a house that would be 3 items. I think at 25 items we make around 3% of the monthly premium. Then at 30 I think the percentage goes up to 4%.

Just wanting to make sure Im settling into an office that isnt taking advantage of its employees. I just see what other offices are making and it really makes me think I was low balled.

Thanks in advance for any input!

Ron
 
Hey everyone!

New to the site here and just wanted to see how our office compares to other offices.

Little bit about me I'm very new to the insurance business I think its been about 3 months here at a local office in Indiana. Also I currently only write P&C at this time, not quite sure if I want to go through training to get another license.

Basically the way our pay structure works is that we are paid a very low base salary ($8/hour) with a tiered commission structure. We dont make commission until we sell at least 25 items. Example if a family came in with two cars and a house that would be 3 items. I think at 25 items we make around 3% of the monthly premium. Then at 30 I think the percentage goes up to 4%.

Just wanting to make sure Im settling into an office that isnt taking advantage of its employees. I just see what other offices are making and it really makes me think I was low balled.

Thanks in advance for any input!

Ron

Do some math for yourself. 1 home and 1 auto is 2 items, though most likely you will encounter 2 cars more often and sometimes an umbrella for other people. So really, look at 2.2 to 2.5 items per person. If you sell 15 clients a month then you get to your 30. What is your average premium per policy in your area?

If you work 40 hrs a week then you get 1280/month without even selling anything. If you sell 15 packages a month (looking down at 2 items per person, I feel that is lowballing) then what would you get on top of the 1280? It gets harder because you have a fixed wage each hour on top of that.

As an independent I get between 10 and 15% (most are 13-15%) per policy written, but no hourly. Calculate both ways for yourself and see what the difference is. I'm the boss, so I get everything. You as an employee would get a portion and the boss gets an override. Calculate what you would make on 13% with no wages, and then your setup with hourly and tiered, and see what the difference is. If that difference is acceptable to you, then it doesn't matter what anyone else gets.
 
even with a hourly wage, thats CRAP commission,

You also need to tell us where do you get leads, etc. What are they providing you.
 
Hey everyone!

New to the site here and just wanted to see how our office compares to other offices.

Little bit about me I'm very new to the insurance business I think its been about 3 months here at a local office in Indiana. Also I currently only write P&C at this time, not quite sure if I want to go through training to get another license.

Basically the way our pay structure works is that we are paid a very low base salary ($8/hour) with a tiered commission structure. We dont make commission until we sell at least 25 items. Example if a family came in with two cars and a house that would be 3 items. I think at 25 items we make around 3% of the monthly premium. Then at 30 I think the percentage goes up to 4%.

Just wanting to make sure Im settling into an office that isnt taking advantage of its employees. I just see what other offices are making and it really makes me think I was low balled.

Thanks in advance for any input!

Ron

If you are going to make 3-4% of the monthly premiums on all the business you sell, as long as it remains on the books and you meet your monthly production requirement, that can turn into real money, as you build a book of business.

However, I doubt you will be paid renewals. I think you mean you'll get 3-4% of the first 6 month or annual premium of business you write for each month, if you meet the production requirement.

For example, you write 50 policies, with the average premium of $500 per policy, the total initial term premium for the 50 policies is $25,000, then you'll get a bonus of $1,000 for the month. That, plus your $8 an hour base, is not great money, but its not too bad for starting out.

Since you are new, it's more important for you to work for an agent willing to help you learn the business. Learn the business and prove you can sell, then in a year or two, you can look for a better offer. If the agent you work for now isn't training you, try to find a job with an agent willing to train you properly.
 
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Hey everyone!

New to the site here and just wanted to see how our office compares to other offices.

Little bit about me I'm very new to the insurance business I think its been about 3 months here at a local office in Indiana. Also I currently only write P&C at this time, not quite sure if I want to go through training to get another license.

Basically the way our pay structure works is that we are paid a very low base salary ($8/hour) with a tiered commission structure. We dont make commission until we sell at least 25 items. Example if a family came in with two cars and a house that would be 3 items. I think at 25 items we make around 3% of the monthly premium. Then at 30 I think the percentage goes up to 4%.

Just wanting to make sure Im settling into an office that isnt taking advantage of its employees. I just see what other offices are making and it really makes me think I was low balled.

Thanks in advance for any input!

Ron

You are getting screwed, my friend. Are you are a producer working for the GA of that office?

Most agencies in my town all pay our producers the same. They get a base hourly rate (usually $8 - $10 an hour) and they get half the commission on all business they generate and they get half the renewal commission on all of that business.

Another common structure is no hourly wage, full first year commission on new business and no renewal commission.

Either way, its a helluva lot more than what you're getting. If I were you I'd call around and find another agency.
 
This is exactly why I don't want to go captive with a big time company. I want my time to be worth the money.
 
Thanks for all the responses everyone!

I guess Im just frustrated with the way it all works. I thought I was going to be making decent money but its just not looking like its going to pan out.

We mostly cold call which is what I hate the most about the job. We get some internet leads but the majority of them are absolute crap. Its just frustrating working for a company that it seems like our prices are constantly higher and have so many customers turn down deals just because of price.
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Also here is a little more on the breakdown for commission per 6 monthly premium.

25 Items 3%, 30 4%, 35 5%,40 6% and on up from there.

Where I live is a pretty small town and hitting those high numbers just isnt realistic unless I start selling from home as well as in the office.
 
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Well unless you are in a unique area, Allstate's prices will most likely not be competitive, they will try and get you to sell value but in reality Allstate is not the Cadillac of insurance companies they think they are. It may be hard for your agent to pay you more with a potential decrease in commission heading his was on 1/1/13.

All is not lost, many people use your kind of position to learn the business and decide if it is for them. Take advantage of the position, learn all you can and move on to greener pastures if you need to.
 
Why not just work for an independent then?

Ask yourself this: Do you have Allstate? If so, why? If not, why don't you?

More than likely you don't care if you have Allstate, State Farm, GEICO, Liberty Mutual, etc. as long as the rates are good and they pay a claim. I'm just guessing based on extrapolation from many other people I encounter as an agent.

If you have Allstate, why? Were the rates good, did you get a good agent, or what? How many of the reasons why you have Allstate solely because of Allstate, and how many of the reasons can you create yourself for others?

Independent is the way to go my friend. You're commission only but at 8/hr you might as well be and get the real money.
 
Schwetty said:
Well unless you are in a unique area, Allstate's prices will most likely not be competitive, they will try and get you to sell value but in reality Allstate is not the Cadillac of insurance companies they think they are. It may be hard for your agent to pay you more with a potential decrease in commission heading his was on 1/1/13.

All is not lost, many people use your kind of position to learn the business and decide if it is for them. Take advantage of the position, learn all you can and move on to greener pastures if you need to.

What do you mean "with a commission decrease heading his way"? Is that a company wide Allstate thing? How much of a decrease?
 
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