How Terrible is this Pay Structure:

Homer8j

New Member
3
Hey Everyone!

I recently accepted (and am working) a new producer (agent) position with an EA AAA office. The pay structure does not seem reasonable to me, but I thought I'd ask experienced agents here to verify. That said, I did accept the offer because I wanted the experience and to get my foot in the door.

Terms are below:

11/hr
2% commission on earned premiums beyond 30,000/month.
2% residual commissions after six months so long as 80% retention is met
No benefits

Also, not to be taken as a rant, but to illustrate some of the challenges in making any commission:
- Producers receive no credit for walk-ins
- Agent/owner sets up phones so that her phone rings twice before anyone else's, given her priority to speak with potential new business.

Thank you for your time and input!

-Drew
 
Last edited:
Whats your average household premium?

So she only gives you 2% on written business over 30k per month?


sounds like you took a job making $11hr
 
Whats your average household premium?

So she only gives you 2% on written business over 30k per month?


sounds like you took a job making $11hr

Yep - exactly that, on both counts.

At least it's been a good learning experience, which is what I was counting on.

Thank you for your response - it's reaffirming that it's a poor deal.
 
Whats your average household premium?

So she only gives you 2% on written business over 30k per month?


sounds like you took a job making $11hr
LOLd

I agree entirely. Get the experience you can and run.

Though with an agency head that's going to hose their employees like that, I wonder what kind of experience you'll be gaining
 
If you're a kick ass producer you need to be getting at least 30% renewal commission. The hourly up front means nothing if you have amazing sales skills. Also try going more commission based but the agents phone ringing first is odd.
 
Hey Everyone!

I recently accepted (and am working) a new producer (agent) position with an EA AAA office. The pay structure does not seem reasonable to me, but I thought I'd ask experienced agents here to verify. That said, I did accept the offer because I wanted the experience and to get my foot in the door.

Terms are below:

11/hr
2% commission on earned premiums beyond 30,000/month.
2% residual commissions after six months so long as 80% retention is met
No benefits

Also, not to be taken as a rant, but to illustrate some of the challenges in making any commission:
- Producers receive no credit for walk-ins
- Agent/owner sets up phones so that her phone rings twice before anyone else's, given her priority to speak with potential new business.

Thank you for your time and input!

-Drew

Could be worse. If you don't like go find something better? Grass is always greener.
 
Hey Everyone!

I recently accepted (and am working) a new producer (agent) position with an EA AAA office. The pay structure does not seem reasonable to me, but I thought I'd ask experienced agents here to verify. That said, I did accept the offer because I wanted the experience and to get my foot in the door.

Terms are below:

11/hr
2% commission on earned premiums beyond 30,000/month.
2% residual commissions after six months so long as 80% retention is met
No benefits

Also, not to be taken as a rant, but to illustrate some of the challenges in making any commission:
- Producers receive no credit for walk-ins
- Agent/owner sets up phones so that her phone rings twice before anyone else's, given her priority to speak with potential new business.

Thank you for your time and input!

-Drew

Sounds like you were happy to get the job. Who paid for your licensing? I would maybe stick with it for at least a year. How long you been there? If you have really choppy resume some places think you aren't loyal and won't stick around once they hire you and give you a little experience. After a while maybe approach the owner about you providing more value to her business. I would not let anyone know if you are shopping for a better gig. GL

And what were you doing making before this job?
 
That's a lot more than minimum wage and you probably don't come home smelling like food.
 

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