My Agency is Incorporating New Bonus Structure this Year.

[certifiedak]

Hi all,

I have been working as a team member at State Farm agency for about 6 months. It's actually my first experience in the industry and I am enjoying it so far, but it looks like our agency is undergoing some big bonus changes in 2016 that has me a little concerned.

To this point, I have been paid bonuses based on what I sell. I sell a new policy, I receive a flat % as a bonus. Simple, and I usually make an extra $100-$200 per month. This is in addition to a salary.

But this year, we will be using a validation system. I will have a P&C premium threshold, P&C app threshold, Life app threshold and Bank app threshold. Once I meet every criteria, anything above that will be a bonus. If I fail to meet any one of these goals in a given month, I won't receive any bonus money what so ever. The only upside is that once my goal is met, the bonus percents are higher than what they are now.

I can't help but feel unsure about this though. My agent is basically setting my goals at what I have actually been producing these last few months and I'm sure there will be months where I have an incredible P&C sales month, but won't receive a penny in bonuses because I was a credit card or life app short.

Is this pretty standard for agencies? If this is pretty normal I am willing to work even harder but the first impression is really concerning given how I've been earning bonuses to this point. Does anyone have any input or experience with this? Thanks.

 

[indienoise]

I wouldn't be surprised by this in a captive agency, especially with a salary.
Captive agents are typically being leaned on by the sales manager to sell more life and other products besides p&c. Their compensation may also be reduced if they don't meet certain minimums.
You receive a flat salary, which is kind of unusual for a producer, and your bonus is pretty minimal anyway. I wouldn't say this situation is normal, but it seems the way SF agents pay their employees isn't "normal" as far as this industry is concerned. In your case, I'd take it in stride and learn what you can while you are working there. And if you turn out to be a good producer (not just an order taker on leads generated by your agency, there's a difference), then perhaps look into options at an independent agency.

Happy New year, and I wish you the best.

 

[Chazm]

There's probably 10 other State Farm agencies nearby. You can always interview at the other ones and see if it's a better fit. Each agent makes his or her commission structure. They get bonuses based on goals that they hit and they want you to reward you for helping them hit that

 

[agentinsouth]

Hi all, I have been working as a team member at State Farm agency for about 6 months. It's actually my first experience in the industry and I am enjoying it so far, but it looks like our agency is undergoing some big bonus changes in 2016 that has me a little concerned. To this point, I have been paid bonuses based on what I sell. I sell a new policy, I receive a flat % as a bonus. Simple, and I usually make an extra $100-$200 per month. This is in addition to a salary. But this year, we will be using a validation system. I will have a P&C premium threshold, P&C app threshold, Life app threshold and Bank app threshold. Once I meet every criteria, anything above that will be a bonus. If I fail to meet any one of these goals in a given month, I won't receive any bonus money what so ever. The only upside is that once my goal is met, the bonus percents are higher than what they are now. I can't help but feel unsure about this though. My agent is basically setting my goals at what I have actually been producing these last few months and I'm sure there will be months where I have an incredible P&C sales month, but won't receive a penny in bonuses because I was a credit card or life app short. Is this pretty standard for agencies? If this is pretty normal I am willing to work even harder but the first impression is really concerning given how I've been earning bonuses to this point. Does anyone have any input or experience with this? Thanks.

It looks like the area Mgr. has come down on your agent or just changed up how your agent is paid. As a result, your agent has to change how you are paid in order to meet these new goals/ requirements. Typical corporate BS. This is why I am now fully independent!

 

[vic120]

I have to assume you are getting commission as well, I can't see being motivated to sell for a $100-$200 bonus.

Anyway when I worked for an agency they always raised goals a % above the production reached by top 30 % of agents.

Another thing I don't miss about working for someone