Am I Making Enough???

[Championpatriot]

How do you set up your agents compensation package?

Here let me pair it down so I might get a more receptive response:

If you are an agency owner, Possible to place business with basically for any market but can not pay a salary what is a generous split and attractive long term offer to attract talented agents to help grow the agency?
New/Renewal Split?

No 401K offered
How do you set up a way to pay for the vesting into the company? I.E. Paying for renewal book when retired, pay a % over X amount of years?

No Health/or any additional benefits offered

Provided by agency:
Some online leads (NQ) are provide, paid by expense budget from the primary company we represent
Very Little, if any walk in business per month, average 1 person a month, if that.
Maybe 3 calls a week inbound quote requests.

Basically the best offered is the fact the premiums on P&C are extremely competitive and the Companies intentions and growth will be strong so as long as you can quote em and can build a good rapport you will get the policy. .

Agents Requirements:
Pay for you own business cards
Pay for any of your own marketing, some can be paid by the growth department of the Insurance company if they are providing those funds, when available it is usually 50% of specific campaigns Otherwise 100% out of agents pocket.
No Direct customer service to handle requests. There will be one available but they will mostly be doing admin work, the books etc. (Not Licensed)
Encouraged to foster relationships with Insurance company customer care where no direct line is currently available, so by emailing, calling customer care line.

In all, a place to set up shop or work out of home and build a book with minimum interference.

Thoughts?

 

[briko3]

Based on what you say, I would request what the others coming in are getting. You will have no place to negotiate, however, if you aren't ready to go elsewhere if he refuses. Based on your last year income, it's a $12,500 difference. Personally, that's enough for me to fight for.

Good Luck!!!

 

[Championpatriot]

Did not help get any better response by trying to explain my current involvement..so I take a mulligan

 

[Winter_123]

Hello All..great site..glad I found it, have found a lot of useful tips so far..But I have a serious dilemma..I will try and keep it short..and of course it is about the MONEY!!

Ok..Coming up on 3 years ago I met up with an agent that just started his agency..probably about 8 months before I got there..so needless to say not much of a book. I did not know insurance except for the 4 years my wife had with AAA as an agent..so I did pick up a lot when we talked. I came from other sales backgrounds. In any event we without so little insurance experience I did not expect big money up front and excepted a 50-50% split from the on set..no benefits, no extras. I soon realized that based on lets say 1 if that inbound call per day and online quote requests I was going to have a serious time making a living and getting to full time..I was working at a restaurant at night while I got my P&C lic. (I paid half for it, and already had my life) So we agreed to a 75-25 split for very short time..I think it lasted like 6 months. Then switched it back to 50-50 ..Once I got the quoting/underwriting down my production took off one day I just got a snack for closing the online quote requests..and some thrown my way from the agent..

Let me stop there..and just ask this question because I tend to get very detailed and this would be a mega post! I did all the intangibles to make sure the AGENCY thrived..As opposed to the shark that was only looking out for himself..took calls that had nothing to do with me, moved on, fixed computers, showed someone how to do something ..whatever it may be ( I tend to figure out how everything works and look at like how can we get it done..not why is it so hard.
I was asked to go to an agency we took over..40 miles away from my house..I said of course it is for the agency..we set up a plan of 1% of the total book over two pay periods of the month plus my 50 of new business..none of my own renewals ..At that time for example $800 per month + my 50% new production..then when my own renewals eclipsed that $800 for the first time..about 5 months later if I remember correctly he wanted to switch back..Of course every month was not that consistent..we only had online lead requests..plus some calls Trickling in..So the ending result is I only made $25 K last year.. which was a full year at 50-50..It is now my understanding he is hiring on new agents..basically recruiting anyone he can from other major companies (This is a major company we are representing as well and poised to make big progress in CA over the next decade) and paying them 75-75% off the bat..Now I am at 50-50 with no customer service agent and my clients calling and emailing me..basically depending on the day a decent amount of service work..Based on this business model..you do not create a "sales manager" , you keep recruiting experienced agents and giving them motivating % which 75 is pretty F-in motivating and you try and give them the tools to hit great premiums..your first year with them might not be to great bu when renewals hit and they keep producing for a couple more years..your on easy street..the problem you leave out the one guy that gives all efforts to the success of the agency the same opportunity

Here is my problem, when I came to the agency I did not need him nor did he technically need me.. I came for the opportunity to own a residual business and part of the company and I made that clear..with my actions and my mouth..but had to let actions speak first..As of today I am have lost my motivation to sell..even though i am costing my self money..because some ownership in this company with that business model no longer seems viable..but I reading here and talking with people about being able to keep the renewals if and when you decide to slow down and/or semi-retire, move on drains me even more.. As I mentioned out simple agreement is 50/50 no benefits, no 401k no no no no no.

The bottom line is the agency would and could not be where it is if we did not start working together..I am one of those people that give my all for the team/family humanity..whatever and usually knowing someone is safe..or happy is my frosting and I do not expect anything more from anyone..but when it comes to my career..The

There are many underlying reasons I would have to explain to let you know why I have not yet just gone and demanded I be treated the way I now expect..If anyone is interested let me know ..at this point I think I am just trying to get myself to forget my reasons and do it..but I was looking for experienced minds in the business to tell me I expect to much or I am right on! Please chime in..

I am wrong to assume with the lack of any benefits, salaries, Guarantees from day one ...AKA NO INVESTMENT IN ME.. 75/75 should be a given as it is to the others???

You dont have a written business agreement with him and he has tied into the fact that you dont have the balls to work it directly with him. You basically have the mindset of an employee (oh boo hoo, I do everything selflessly for everyone and dont get paid as much as the other drones) rather than a business owner. Next year he will give you a desk next to the photocopy machine and that will be a big crisis in your life.

Part way into your post, which was turning into the Gutenburg Bible in length, I thought you were headed in the direction of how to go independent now that you have learned your lesson but you actually want counseling on how to be a sucker and how to deal with the fact that that 12,000 a year will keep you chained there and groveling. I liked the part though about your being there because you give your all for humanity.

Grow a pair and start thinking outside your current mindset. Doesnt mean we dont all love you here because you know we do

 

[beatuplunchbox]

Grow a pair and start thinking outside your current mindset. Doesnt mean we dont all love you here because you know we do

Yeah, dude. I know you are frustrated and just venting but you are wasting time complaining. If you are as good as you say you are and only made that much, then DO SOMETHING ABOUT IT.

Either demand better from your agency or go independent and do your own thing, $24k a year is nothing to leave behind compared to what you could be making. The power is in YOUR hands.

 

[briko3]

For all you know, you'll ask and he'll say...Oh, I forgot that was our intitial agreement. Of course I'll up it to what the new guys are making.

What you need to ask yourself, however, is if you shouldn't be making MORE than the new guys because of what you said. Apprently you helped start him out...are instrumental to the business doing well. If so, you need to be making moer than incoming people.

Just my opinion.

BTW, it sounds like you know EXACTLY what you need to do, you're just looking to this forum to build up the courage to ask for it. I think it's clear you're not making what you need to be, so we've given you the greenlight to act TODAY. Don't put it off until tomorrow now matter how scared you are. You'll sleep better TONIGHT knowing you've done it and will probably be wondering why you even worried in the first place.

Good luck!!

 

[Championpatriot]

Winter..what can I say you are right on and I should in fact "grow a pair".. My current mind set is foreign to me, in past times I would just look at my target, come up with some plan and fire away. I walked away from the cell phone business I was doing quite well in because it just did not hit the spot for me. Once key aspect I left out though in all this that makes it hard to have my back up leverage is that I am moving over 300 miles away in 4 months.. This does not change much as far as staying with the agency, 99% of my bus is done over the phone. But you are right about the employee mindset and he may be picking up on the fact I do not have the balls to deal with it directly..but I do have to say I am pretty sure it also has to do with the fact we are still treading water..not standing on solid ground just yet so the portion he makes it vital..Which brings me to this..I know I need to stop complaining I cannot agree more..this is far from my normal behavior and I need to get back to my normal self so here go's the final question so I can get my self back to business. Based on Zero Upfront Salary when I started, Zero Benefits etc I have described here what is a reasonable contract to put together. Your responses will be taken seriously as I draft my proposal to him THIS WEEK! I know I deserve and do not feel I can settle with less than what the others are making... But until these guys actually start making him more money he may be in no position to give up 25% from me right now. So I am going to start out with a rolling contract and finally getting to to 75-75 .. Immediately starting at 75 up front but renewal maybe 60..similar to my previous post..But I am also more concerned with the future aspect..Is it reasonable and what is fair to set up for the future, contact in regards to renewals, retirement etc. Like I mentioned as of now the only known heirs to the agency would be his 18 year old son, younger kids, sisters ets. If something were to happen to him how can I keep my self protected in this case...We are in the insurance business..so I think a very important question to ask? Your points are well taken and they are "dropping" Winter..just as Briko said I know what I need to do and I was looking for some encouragement ..But I do not want to just plug a hole in my leaky boat so to speak to please me now..I want to make sure my Hull is strong and secure for the long term. I am not sure who you guys and gals work for but when I compare my wifes situation to mine I do NOT EXPECT nearly what she is provide, but to create what I want .As you know being a sales champion is an art and I have to make sure when it rains my canvas does not get wet. My wife does not have to worry about these things, they provide the protection from the elements. Meaning she has a 401k matched, lots of walk ins to get there numbers done, possibility of making a great yearly salary with not renewals but you can make a decent living but they are stuck to their way of doing business ..their schedule etc. I am only looking for open waters with the right ship to get to my destination. Sorry again for the long post..as you mentioned Winter..I tend to get "Biblical"

 

[Frank Stastny]

Your posts would be a lot easier and more enjoyable to read if you broke them up into paragraphs.

I think your current attitude is reflected in the way you titled this thread. You are the only one who can answer that question.

I would have to say that since you are still there accepting the crumbs that are being thrown at you that you are apparently very content with what you are receiving. You have either reached your comfort level or do not have enough self-confidence yet to strike out on your own.

Either way it is past time to make some decisions. Be happy with where you are or make some changes. Only you can make that decision, we can't make it for you. We don't know you so that may be the best place for you at this point in time.

I would venture to say that if you started a thread titled "DO YOU THINK YOU ARE MAKING ENOUGH MONEY?" you would not get one agent who said YES.

 

[Championpatriot]

I would think my new start up on this post should elicit a more common sense..and thoughtful answer..hmm..just maybe...trying ....just maybe....huh ...trying to uh maybe think..just a little..huh..little bit of novel there...little bit of thoughts..(just replacing what I here before and thought of the Family guy episode)

 

[Tom Highway]

Your posts would be a lot easier and more enjoyable to read if you broke them up into paragraphs.
.....

Not meaning to pile on the OP here, but good grief you called that one right, Frank. My eyes were sort of glazing over. I really don't mean you any disrespect, championpatriot.