Job Offer Opinion

[dubt1]

Hello all,

I am brand new to the site and was just licensed in P&C. I work for an insurance corporation out in Arizona and have been working as the Risk Analyst where I handle our corporate insurance program. The company decided to start an insurance agency within the organization to take care of the corporate insurance and begin selling other types. They asked me to get licensed, which I did. They have offered a position of Account Executive where I will manage in-house corporate insurance, grow revenue by selling other insurance products, and handling specialty programs like our REO where we are a commercial lender. The job would pay a base salary in the upper 40k range with 30% commission on the agencies commission with new business only. My question is, when I started in the insurance field, I wanted to start young and grow a book of business by going independent. I'm 26 years old and wondering if the seasoned people here think I should take this job (which sounds like a great opportunity to me) or if I should go independent while I'm young so I can grow my book and have a good base as I proceed in this field. Sorry for the long question, I had to get all my points in here.

Thanks for your help!
Matt

 

[xrac]

Sounds like a good offer. I would take it. You are young enough that you have plenty of time to go Indy. I would pay down any debt, save money, create a war chest for starting my own agency, develop as many contacts in the industry as possible, and develop a client base all on someone elses dime.

 

[Bruce]

Sounds like a good offer to me as well. At 26, you have plenty of time to change paths and I would just suggest to work hard and save hard early.

Another thing i'd suggest is to have a discussion with the company principal(s) about your potential regarding an equity position. If you are serving as the catalyst for the new venture and you are successful, it's reasonable to have some expectation that you would share in the growth of the firm overall and especially with respect to the newer business unit.

 

[Carlos Gil]

It sound like a great opportunity to me. Going trough the process of starting the agency from the ground floor on someone elses dime will give you great experience and will help you if you decide to branch off on your own.

 

[Crabcake Johnny]

I'd want them to outline the minimum production requirements necessary to keep that nice 40K salary.

One of my good friends took a job as a small group account executive - sounded far too good to be true; 60K salary, expense account, company car, 401K and commission plus he inherited a small book to manage. His real job was to create new accounts.

He took the job and was let go 8 month later when the agency owner claimed he was not opening enough new accounts. Also, although they agency initially claimed to provide leads it became clear they wanted him to generate his own business and towards the end he was cold-calling out of the local yellow pages.

 

[Crabcake Johnny]

Just doing some basic math, they can't continue with those terms unless you earn a profit for the agency.

If you're a 40K plus 30% commish you'd have to generate around 60K in commissions for the agency to break even so I'd assume you need to actually generate around $100,000 for the agency to be happy with that arrangement.

 

[xpirtdesign]

i feel this is a great opportunity for you because seriously you are only 26 years old and thats still pretty young so gain all the knowledge and experience you can from this company and soon you will be able to go indy.

 

[dubt1]

Just doing some basic math, they can't continue with those terms unless you earn a profit for the agency.

If you're a 40K plus 30% commish you'd have to generate around 60K in commissions for the agency to break even so I'd assume you need to actually generate around $100,000 for the agency to be happy with that arrangement.

The REO program that I will be handling brings in $1.6M per month in interest revenue. I will handle 148 properties in the U.S. The corporate insurance company (not the subsidiary agency) makes their money through investments. I am paid salary through the corporation, not the agency.
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Thanks for all of your responses. It sounds like the majority is in favor of the position. I have some thinking to do. Again, I appreciate your comments and professional opinion.

Matt

 

[amandagirl]

Hello all,

I am brand new to the site and was just licensed in P&C. I work for an insurance corporation out in Arizona and have been working as the Risk Analyst where I handle our corporate insurance program. The company decided to start an insurance agency within the organization to take care of the corporate insurance and begin selling other types. They asked me to get licensed, which I did. They have offered a position of Account Executive where I will manage in-house corporate insurance, grow revenue by selling other insurance products, and handling specialty programs like our REO where we are a commercial lender. The job would pay a base salary in the upper 40k range with 30% commission on the agencies commission with new business only. My question is, when I started in the insurance field, I wanted to start young and grow a book of business by going independent. I'm 26 years old and wondering if the seasoned people here think I should take this job (which sounds like a great opportunity to me) or if I should go independent while I'm young so I can grow my book and have a good base as I proceed in this field. Sorry for the long question, I had to get all my points in here.

Thanks for your help!
Matt

I am also new to the insurance field and would to see what type of responses you get....

 

[jmhopkins40]

I am also new to the insurance field and would to see what type of responses you get....

Welcome Amanda,

* sure it wont take long for someone, or maybe one of the "FAB 5" to get with you. Theres alot of great info on this site. If u cant/dont here anything that answers your questions or meets your needs you can find me on here.

* Note: Go independant, avoid paying anything out of your pocket, work multiple product lines, the phone is your friend, go strong or change fields.

When it comes to medicare support, I highly recommend Frank. He is one of very few I have found thus far that will actually answer the phone themselves or return a call. Sure there are some.

You will figure out the "FAB 5" joke yourself in approx. 2 weeks of reading these posts.

Good Luck