Is This a Good Starting Position in Insurance Sales?

[jb1953]

I have been lurking this forum and reading so much valuable information on here for 30 days or so. I appreciate the insight you folks have given to people looking to get started in this industry.

I'm currently a F&I manager at an auto dealership and looking to move from the auto business. I have been offered a position with several companies, but have really only given one much consideration because of what I've read here...

This company is an independent, and I would be selling L&H mainly along with some other products. 100 % commission which is kinda scary to someone brand new to the industry. 60-65% commission on policies written (1099) employee. Also have to stay with this company for 5 years before I'm "vested" and own my own book of business...is that common?

I have yet to attain my L& H license but plan on doing so very soon.

Training is very important to me, as I'm new to the business. So is this a good offer? Or do I need to look elsewhere. I have a bachelors in Business Management and been out of college almost 5 years. I'm really looking for a career I can stay with and of course, make good money.

Sorry for the long post, thanks in advance for any insight.

 

[2112Greg]

What is the name of the company and are you 100% sure they are independent?

 

[Crabcake Johnny]

Need a bit more info:

1) Is this a physical location you'd be going to each day?
2) Would a manager work hand-in-hand with you?
3) You said 60%-65% commission so I'm assuming that's based off street level contracts. So if health is 10% you'd get about 6% and if life is 90% you'd get about 50%?
4) Are leads provided?

 

[Frank Stastny]

You need a lot more information. A 100% commission doesn't mean anything, find out what the percent of premium your commission will be. I can offer someone a 100% commission and set their commission at 10%.

I'll bet they are going to require you to assign your commissions.

 

[Crabcake Johnny]

This can turn into a 20 page thread and I don't care...but listen to this advice because it's right:

Unless someone's willing to pay give you a base pay with a modest commission and hold your hand while you learn the business you're better off going indie right off the bat and getting the best contracts you can with no vesting clauses.

I hear a lot of agent saying there's value for new agents to get into situations where they don't own a book, get no leads, no base play plus a nice 50% comp cut in exchange for "training"...and they're all dead wrong.

Life insurance, for example, you can get with Brokers Alliance and join the ILIAA.org. Between those two outfits you'll destroy whatever training you get from your "manager" who likely just wants a list of your 200 closest friends.

For health insurance, join my association - ihiaa.com and for $20 you'll get more real-world training in a few days than 3 months with a company that's gonna cut your comp by 50% and tell you it's 5 years to vest.

 

[jb1953]

Thanks for the quick replies,

*The company is independent, they use several carriers

*It is a physical office I would go to everyday

*A manager/agent or the owner/operator would work with me, and take 50% if they are with me and a sale is closed.

*I would be sold the leads for $20/each

*60-60% is for life, health is quite a bit lower.

Thanks again for the advice, I'm truly sick of the auto biz!

 

[Crabcake Johnny]

Sounds like a terrible deal and you need to run the math.

Allow me to run it for you on the health side: 10% comp is street if you're getting 60% it's 6%.

$20 leads and even if you close 1 out of 5 (which you won't) and the average annual volume is $3,000 it's $3,000 X 6% = $180 - $100 in lead costs and you've made $80.

For term life, say the average annual volume is $600. You'd get 90% street but with 60% you'd get 54%. $600 X 54% = $324 - $100 in leads = $224.

You'd make more mowing lawns.

 

[GoCubsGo]

Is This a Good Starting Position in Insurance Sales?

If you're bent over, then Yes!

 

[jb1953]

This can turn into a 20 page thread and I don't care...but listen to this advice because it's right:

Unless someone's willing to pay give you a base pay with a modest commission and hold your hand while you learn the business you're better off going indie right off the bat and getting the best contracts you can with no vesting clauses.

I hear a lot of agent saying there's value for new agents to get into situations where they don't own a book, get no leads, no base play plus a nice 50% comp cut in exchange for "training"...and they're all dead wrong.

Life insurance, for example, you can get with Brokers Alliance and join the ILIAA.org. Between those two outfits you'll destroy whatever training you get from your "manager" who likely just wants a list of your 200 closest friends.

For health insurance, join my association - ihiaa.com and for $20 you'll get more real-world training in a few days than 3 months with a company that's gonna cut your comp by 50% and tell you it's 5 years to vest.

Any advice on finding a place that would "hold my hand" while I got started until I learned the business? Places such as Norwestern Mutual, Insphere, and Amerilife do not interest me.

I have interviewed @ NW...no thanks, had a "manager" miss an interview with me for Insphere (went to interview, he wasn't there...said he "scheduled it wrong"), and had friends interview with Amerilife and let's just say there were less than impressed.

Just had a phone interview with Asurea, that sounded pretty good...just need to do my homework on them as I would be essentially working from home besides presenting in client's homes.

Thanks again for all the help.

 

[Chazm]

I started just like you, except you have the upper hand by already being a member of this site. I started with 64% life insurance comm. 10% med supp commissions and stayed there for about 1 year.

Believe me, what everyone is telling you here is the truth. No company is really going to hold your hand with 100% commissions. Most companies just hire and hope you stick.

Go Indy, you'll get better commissions and own your own book. Join those organizations that healthagent talked about and you will get atleast as good as training from your company...probably even better