Guaranteed Pay

[BA-35]

I'm fairly new to insurance sales and was hoping to solicit some feedback from the group...

I'm a captive agent for a mid-sized P&C carrier. My commissions are fair, however, there is also a guaranteed income feature.

For my first year, I'm guaranteed a flat amount. In year two, this flat amount decreases a bit. In year three, it decreases more and finally, at the end of year four, the guaranteed feature expires.

I'd love to hear the forum's thoughts...is this a standard feature? Am I on to a good thing, or is this a basic for a new hire?

Thank you
BA-35

 

[patch36]

What are you a Farmers agent? Try the search function while you wait for more opinions.

Not many succeed on these deals. I know of a couple out of my career class that are still doing it and making it work. Out of 20 or so. Search and read. Everyone's situation is different. If they are giving you a book of business to work and draw renewals off of, you might succeed. Regardless of which company it is, you will need to cross sell and especially concentrate on life and securities. the P&C at best for the first few years might pay the office expenses. If you dont hit certain numbers what you are drawing against is a loan they will want paid back.

 

[stormtracker]

I'm fairly new to insurance sales and was hoping to solicit some feedback from the group...

I'm a captive agent for a mid-sized P&C carrier. My commissions are fair, however, there is also a guaranteed income feature.

For my first year, I'm guaranteed a flat amount. In year two, this flat amount decreases a bit. In year three, it decreases more and finally, at the end of year four, the guaranteed feature expires.

I'd love to hear the forum's thoughts...is this a standard feature? Am I on to a good thing, or is this a basic for a new hire?

Thank you
BA-35

Depends entirely on your renewal commission schedule. Normally, that is the long term replacement for guaranteed income to start. It is also very likely that you will have to continue writing for this agency to receive those renewals. You have to be very certain about these types of features in your contract.

 

[djs]

Bottom line is there is no such thing as 'standard'. Every company seems to have a twist. It's what you are comfortable with.... actually, its what you are uncomfortable with. Comfort leads to complacency, complacency leads to lack of sales.

If the company you are with has solid products, decent rates, and any form of support, just look forward, never backwards. Don't think about what could have been, think about what you will make out of it, from this point forward.

As far as I know though, very few companies offer a guaranteed income feature that is worth talking about. It's enough so they can recruit, not enough so a new agent can survive without selling.

Dan

 

[insuranceexec]

Welcome to the forum. We are glad to have you here.

 

[BA-35]

Thnak you.

Patch36...I will take your advice and leverage the search features. And for what it's worth, I am not with Farmers.

 

[KillerWhale]

HI

 

[gzpxyj]

You probably have to meet certain quota of business in order for you to get the guarantee. Otherwise, you are out.