Am I Doing Well? Commercial P&C Producer

[Jason Henderson]

Hello all,

I am starting my third year as a producer in Utah at a independent agency. We chase small-mid size commercial accounts and tend to stay away from really large revenue accounts the big boys chase. I think I am doing pretty well but I have nothing or nobody to compare it to so I will give you the run down of my career thus far-

I started out with zero sales or insurance experience, I didn't even know what the General Liability was when I started, I was reallly green. I did not make any sales in the first 6 months as I was learning what the heck I was selling and wanted to be proficient in my craft. I was on salary for year one and a smaller salary+commission year 2 and straight commission year 3. 50/35 split on revenue as the agency provides all back end support for my book of business, markets and benefits.

I work in a very insurance friendly state, Utah, and the premiums are very low compared to say California, Florida or New York. After two years my book of business is around $1.1M premium and $160k in revenue. Would you rate my success so far as poor, average, or above average?

Cheers!

 

[Markthebroker]

I'm commercial p&c too. I'd say that's very good, definitely above average, but your split is a bit low. To be fair, if you're getting lots of leads and support, that's not a bad split. I'm getting 50/50 with profit sharing, but I get 0 leads. That's fine though, because I have developed a lethal referral and networking system with a higher close rate than any lead.

 

[EugeneM]

Million first year is superstar... you are doing pretty good.

 

[Jason Henderson]

Thanks for the feedback, it's definitely a tough industry but I've been fortunate to land some nice accounts early in my career. I feel like I've done pretty well but like I said I don't know anyone who does commercial so it's hard to compare. My agency mentors and give me some leads, which is why I feel the split is fair.

If you could offer some advice that you would tell yourself when you started out, what would it be? Speaking strictly commercial accounts as I feel it's vastly different mind set/sales approach from personal lines.

 

[adjusterjack]

So, for 2019 your income was about $56,000 plus whatever your smaller second year salary was. I'd say that was excellent for somebody who started two years ago with no knowledge and no experience.

 

[Markthebroker]

Thanks for the feedback, it's definitely a tough industry but I've been fortunate to land some nice accounts early in my career. I feel like I've done pretty well but like I said I don't know anyone who does commercial so it's hard to compare. My agency mentors and give me some leads, which is why I feel the split is fair.

If you could offer some advice that you would tell yourself when you started out, what would it be? Speaking strictly commercial accounts as I feel it's vastly different mind set/sales approach from personal lines.

What would I tell myself when I started out?

Find myself an agency that offers leads, mentoring and a fair split. Then, somehow, if I manage to figure out how to sell and by some miracle hit $1,000,000 within my first couple of years selling, then don't change anything I am doing.

 

[Mr O]

Hey Jason,
Thanks for the post. I have some of the exact same questions as you. I am a new producer with no insurance experience. I work for an IA and I just finished my 10th month. I have written $450,000 in total premium. I have 50/25 split. What are your annual sales goal?

 

[Jason Henderson]

Hey Jason,
Thanks for the post. I have some of the exact same questions as you. I am a new producer with no insurance experience. I work for an IA and I just finished my 10th month. I have written $450,000 in total premium. I have 50/25 split. What are your annual sales goal?

What state are you producing in? That is a heck of a start, way more than I did in my first 10 months. My goals are based on new revenue and not necessarily premium, my goal is to get $110k of new business revenue in 2020. I like to set my goals on the higher side, I don't see the point of setting a goal that you know you will get to. I can get to $110k of new revenue but I will have to grind, our premiums just aren't that high in Utah compared to coastal states.

 

[Derrick]

The things I would do to get a $1MM/yr producer under me...

 

[Wade Millward]

@Jason Henderson - $1.1M after 2 years isn't bad at all, keep up the good work. Here are some general stats for you, 9/10 insurance producers fail within 2 years. Most average about 300k in premium/year. I've been doing this for 12 years now, have my own book that generates $1.4M in revenue. My suggestion is to find a niche, develop the niche and be the best. I'm also in Utah, you may be interested in what we're doing here. Let me know if you want to chat.