$$$ Expectation for New Agent

[3404Speed]

I have been in media sales for the past 4 years making between 80-100k. I decided to take a look into home/auto/life insurance about 6 weeks ago and I quickly had a book offered to me with premiums valued around 560k. I have a couple questions because I'm new to the game and just want to make sure that if I accept, I will be making a good move...

1.) Is a book this size considered to be poor/medium/good for someone with a proven sales history but no insurance sales history?

2.) Should I be after a larger book based on my current income range? If so, what size book should I be looking for?

3.) Realistically, how long would it take (approx) to grow a book of this size before I will be back at the 80-100k + mark?

Suggested next steps...

 

[YouGotMyMoney]

Is that AV for home and auto only?

 

[Gulliver]

An office that is primarily P and C with this amount of premium will yield approximately 60,000 in renewal commissions. I am being conservative with this estimate. You could be anywhere from 50,000 to 90,000 depending on type of business and companies you are working with. Keep in mind that this is gross commissions. This would be a nice little book to get you some immediate cash flow, however, it will take you some time to get it up to where you would need it to be for income like you have had. I would push for 1.5 mill as fast as possible with one employee. That would be the sweet spot for you and one CSR. You could pay CSR 25-30K and you keep the rest for expenses and fun.

As far as time goes. Personal Lines Auto and Home would probably take you about three years of very heavy activity to get from 500k to 1.5 mill. Most people would take 5-7 years to get to 1.5 million from scratch but that all depends on business mix and how hard you work. This business is hard to predict. You have to create your own luck so it is hard to answer your questions with certainty. You seem very confident and very successful so I would give you the benefit of the doubt here. Keep asking questions you will likely get some more feedback that could help you.

Good Luck,

Gulliver

 

[djs]

I agree with Gulliver, but did want to point out that the $60K he mentions is gross. Out of that you have to pay your office expenses, phones, E&O, postage, whatever.

It's a REALLY good start, it means you have a 'floor' underneath you as you grow your business. It is not where you want to be.

The other thing is, if they are offering it to you, the carrier may only pay partial commissions on it. Depends on who you will be associated with. Check this out before making budget plans.

Pushing for a bigger book is always good. Not sure they will give it to you. Keep in mind, most people start with nothing.

Dan

 

[3404Speed]

Do larger insurance companies ever offer signing bonuses? If so how much is a realistic amount to ask for?

 

[Mark]

Do larger insurance companies ever offer signing bonuses? If so how much is a realistic amount to ask for?

The insurance market is flooded with agents right now. They don't have to offer any kinds of sign on bonuses or anything.

and are you talking about for a brand new agent or someone that has been selling for 30 years or something?