If You Had to Choose One Company...

[ArkAgent]

I'm in Colorado and am currently a producer for a Farmers agent. I'd like my own gig some day. Few credit issues that I'm cleaning up. I was curious what other captive opportunites were out there.

What kind of commission does Shelter pay?

While you are on salary (first year or two) you get a fixed salary based on the size of the book you started (1mil prem agency is around 50k yearly salary) as well as a monthly stipend for office expenses (3k-ish).

During this time you don't get any renewal commissions from your book, however you do get all first year commissions. (40% perm life, 25% term life, 10% P&C).

Typically the new agent will make around 50% of his salary in commissions and bonus's his first year if he's successful.

Once you contract and go off salary, you get basically 10% of your books premium on renewal's but you can wind up getting another 50-70K a year in bonus's if your loss ratio, growth and life sales are decent (can't remember numbers offhand but very very attainable...especially after coming from State Farm's agent aspirant program).


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While you are on salary (first year or two) you get a fixed salary based on the size of the book you started (1mil prem agency is around 50k yearly salary) as well as a monthly stipend for office expenses (3k-ish).

During this time you don't get any renewal commissions from your book, however you do get all first year commissions. (40% perm life, 25% term life, 10% P&C).

Typically the new agent will make around 50% of his salary in commissions and bonus's his first year if he's successful.

Once you contract and go off salary, you get basically 10% of your books premium on renewal's but you can wind up getting another 50-70K a year in bonus's if your loss ratio, growth and life sales are decent (can't remember numbers offhand but very very attainable...especially after coming from State Farm's agent aspirant program).

I'd like to add, as far as initial compensation while getting started it's great.

 

[tjeyoyo]

Ok, I'm looking for some input on captive companies. I know most of the major posters on this site are all independent and will preach independent all day long. But if you HAD to pick a captive company to hitch your wagon to, who would you choose? State Farm, Allstate, Farmers or some other carrier. Why would you choose them? Rates? Lower production requirements? Better training? Lower barrier of entry?

Thanks

So you're looking for a carrier with the lowest of the low expectations correct?

 

[VolAgent]

While you are on salary (first year or two) you get a fixed salary based on the size of the book you started (1mil prem agency is around 50k yearly salary) as well as a monthly stipend for office expenses (3k-ish).

During this time you don't get any renewal commissions from your book, however you do get all first year commissions. (40% perm life, 25% term life, 10% P&C).

Typically the new agent will make around 50% of his salary in commissions and bonus's his first year if he's successful.

Once you contract and go off salary, you get basically 10% of your books premium on renewal's but you can wind up getting another 50-70K a year in bonus's if your loss ratio, growth and life sales are decent (can't remember numbers offhand but very very attainable...especially after coming from State Farm's agent aspirant program).

And what is so great about Shelter's products to justify such horrible commissions? 25% on term, is that a joke??

 

[ahennings]

So you're looking for a carrier with the lowest of the low expectations correct?[/QUOTE

Haha, it does sound like that. I've read a lot of the boards here and many people claim to have been screwed over by their company and went into serious debt because of it. I'm just curious about what options are available. If a carrier has lower production requirements, then the greater chances of not missing a quota and less chance of losing my investment. Obviously, I want to sell more and make more money, but occasionally everyone can have a bad quarter. Or a product that no one wants.

 

[Denise509]

I am about to sign my career agent contract with Farmers. Commissions I feel are very strong. 10% on auto and 20% on fire with 14% renewal. As mentioned above, claims may not be the best. I have not had a client file a claim yet but a lot of bad responses everywhere on them.

Their training and goals are very good. They will let you work from the district office with a full support staff for years. they will give you about $2500 a month for 3 years in "subsidy" to get you off the ground and pay for 1/2 of your internet leads. Goals are 40 P&C and 4 Life a QUARTER.

Overall they have been great to me and the pricing is great where I am. Hope this helps buddy!

+1 for Shelter by the way! they seems great as well.

LOL

Do you even know what "subsidy" means

 

[GMANPRO]

LOL

Do you even know what "subsidy" means

sub·si·dy
n. pl. sub·si·dies
1. Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
2. Financial assistance given by one person or government to another.
3. Money formerly granted to the British Crown by Parliament.

I know that if you don't meet the performance requirements with Farmers you have to pay it back. I just meet the requirements.

I know you guys are here to help but please don't assume I am stupid or be condescending.
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And yes I know that it is classified as a loan. but once again if you meet the requirements it is tax free money to help you get off the ground.

 

[xrac]

sub·si·dy
n. pl. sub·si·dies
1. Monetary assistance granted by a government to a person or group in support of an enterprise regarded as being in the public interest.
2. Financial assistance given by one person or government to another.
3. Money formerly granted to the British Crown by Parliament.

I know that if you don't meet the performance requirements with Farmers you have to pay it back. I just meet the requirements.

I know you guys are here to help but please don't assume I am stupid or be condescending.
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And yes I know that it is classified as a loan. but once again if you meet the requirements it is tax free money to help you get off the ground.

Just let us know if you still think this is a good deal three years from now or not.

 

[GMANPRO]

Just let us know if you still think this is a good deal three years from now or not.

Will do! ** Apparently posts have to be 20 characters**

 

[VolAgent]

And yes I know that it is classified as a loan. but once again if you meet the requirements it is tax free money to help you get off the ground.

You sure about that? A loan that is forgiven is taxable income. So either it was income when it was received, or it is a loan that was forgiven, generating income in the year in which it is forgiven.

 

[GMANPRO]

You sure about that? A loan that is forgiven is taxable income. So either it was income when it was received, or it is a loan that was forgiven, generating income in the year in which it is forgiven.

Yes but they forgive it over the course of 3 years. Point is when you are getting started you don't pay all the tax on it which is when you really need the money.

I'm not saying that it is the best plan or contract out there, or that Farmers is the best company to work for. All I am saying is that it seems like a fair and helpful way to get started.