Career Decision Help!!!

[USF3983]

Ok, here's the story.

I work for a friend of mine. He lured me into the industry with promises of lucrative earnings.

His background is that his father has been an Allstate agent for 35 years or so, his brother works for his father, and he decided that he was going to go independent because he didn't want to be a slave to Allstate's captive agency restrictions.

He started an agency from scratch in October of '06 with maybe 2 auto contracts and 1-2 home contracts. This is in Florida BTW.

He and his wife worked by themselves until he hired me about March of '07. I got my 4-40, should have got my 2-20 about a year later but kind of sat on it a little longer.

Here's my problem. I'm not sure if I'm being paid by the industry standard. My agent is a sharp, intelligent guy, but I think he is following his father's model for paying employees.

I was initially making a base wage of $15 an hour. I got my 2-20 around 11/2009 which at point I was making 15 an hour plus 1% of new business commission. Maybe about 2 years later I got bumped to 2% of new business commission. I'm currently making a base of $17 an hour and 2% of NB commission.

We primarily focus on personal home and auto. Our office consists of my agent, myself, another 4-day a week producer, and a part-time 4-40. There is little hope for the 4-40 to be a 2-20. We have about 7 auto carriers and about 6 home carriers.

He and his father run a lead generation site that we rarely get leads from anymore. It used to appear higher on Google search terms but it has since gotten too expensive for them to consider getting it higher these days. We live off of referrals from Progressive, customers, and whatever his dad's Allstate agency can't write.

I don't get anything on renewals and I handle more customer service than I care too. My take home is barely $30K a year and I think that is well below the industry standard in my opinion especially after 6+ years of experience.

He pays his dad 25% lifetime commission on stuff his dad refers to us. I've been meaning to talk to him about swinging that my way if I start producing leads.

Any thoughts or expertise on the matter? Any employers out there with opinions?

P.S. I've been through the thick and thin of things since the PIP and sinkhole fraud started in Florida. Rather than produce new business for the agency I had to work to keep the existing business we were hemorrhaging when the rates were climbing state-wide these past few years. His policy is to give us a flat $5 for clients we have to rewrite or $10 if it's Mercury or Travelers since they have better commission rates.

 

[rudy323]

You'll never know if you never ask.
Ask for the 25% comm on NB you generate

 

[xrac]

You are not happy so it is time to look at options.

 

[Sales71]

Not sure what are you asking for?

 

[USF3983]

I'm curious about what is the industry model/standard for what a producer (whom doesn't run/own their own agency) is paid?

I didn't sign up to do a ton of service. I make a base of $17 an hour plus 2% of new business commission. I'm taking in $30,000 after taxes which I feel is low for a 2-20 with 6 years of experience. I want to know if anyone thinks that is too low. The industry average seems to be closer to the $50K range. Or at least $40K.

 

[xrac]

I'm curious about what is the industry model/standard for what a producer (whom doesn't run/own their own agency) is paid?

I didn't sign up to do a tone of service. I make a base of $17 an hour plus 2% of new business commission. I'm taking in $30,000 after taxes which I feel is low for a 2-20 with 6 years of experience. I want to know if anyone thinks that is too low. The industry average seems to be closer to the $50K range. Or at least $40K.

I do not think there is such a thing as an industry standard for a compensation plan. However, over all yours maybe a little low but not much based on what you a doing.

 

[Sales71]

I'm curious about what is the industry model/standard for what a producer (whom doesn't run/own their own agency) is paid?

I didn't sign up to do a tone of service. I make a base of $17 an hour plus 2% of new business commission. I'm taking in $30,000 after taxes which I feel is low for a 2-20 with 6 years of experience. I want to know if anyone thinks that is too low. The industry average seems to be closer to the $50K range. Or at least $40K.

It all depends how good you are and what value you bring to the agency. Your pay is not bad for a support staff. They are paying you like every other Allstate Support staff is the same model.

 

[TonyC]

....that seems pretty low.

So you are saying that you get 1% on business that is referred to you....this NOT BIZ you generated yourself?

Is this typical compensation for Auto?

 

[Norwayguy]

I'm curious about what is the industry model/standard for what a producer (whom doesn't run/own their own agency) is paid?

I didn't sign up to do a tone of service. I make a base of $17 an hour plus 2% of new business commission. I'm taking in $30,000 after taxes which I feel is low for a 2-20 with 6 years of experience. I want to know if anyone thinks that is too low. The industry average seems to be closer to the $50K range. Or at least $40K.

Your being paid as a CSR that can produce based on leads they generate/pay for. Why not get out of his office as a commission only producer.

 

[AgentProvocateur]

It's not 6 years of experience with a 2-20 that commands the big pay check, it's the amount of business a producer can bring in and retain, that brings home the cheddar.

I don't know about prevailing wages in your area, but where I'm at, your friend could find a very good sales-oriented CSR, able to close when provided leads, for what you're paid. If your friend's agency lost you, is it likely your replacement would sell less than you did? You say your friend's agency has been losing business, how much do your unique efforts add to the bottom line?

You can't compare your compensation to the compensation of producers going out & finding business for their agencies. It's not realistic to expect lucrative compensation when you are given leads anyone licensed can close.

I'd say you have a pretty good situation as a CSR, with some compensation for sales. But you say you really don't want to service accounts, and that was not your original expectation for the job.

If you want to make it as a commission-only producer at another agency, you are going to need and be able to execute a marketing plan to find business. I've seen good inside sales people humbled when they leave for "better" sales jobs requiring them to find clients.