New Agent Salary and Commission Question

heavenborn

New Member
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I'm completely new to the insurance sales business. I have a life accident and health license and recently got a job at a small allstate agency.

The executive agent is 84 and has been with allstate for about 40 years, for the past few weeks I've been coming into the office and I made 2 sales so far.

This morning I discussed my salery with him, I was told he would give me 200 a week and 20 percent of life contracts I sell. I don't know whether this is acceptable or an insult, so I'd like to have some opinions as to whether or not this is a good starting salery and commission rate.

Tl; Dr
I'm new to the insurance business , I'm being paid 200 a week and 20 percent of life contracts I sell, is this good?
 
Re: New Agent Salery and Commission Question

I'm completely new to the insurance sales business. I have a life accident and health license and recently got a job at a small allstate agency.

The executive agent is 84 and has been with allstate for about 40 years, for the past few weeks I've been coming into the office and I made 2 sales so far.

This morning I discussed my salery with him, I was told he would give me 200 a week and 20 percent of life contracts I sell. I don't know whether this is acceptable or an insult, so I'd like to have some opinions as to whether or not this is a good starting salery and commission rate.

Tl; Dr
I'm new to the insurance business , I'm being paid 200 a week and 20 percent of life contracts I sell, is this good?

Since your brand new, and need training I think its not a bad deal. Having some kind of guaranteed income when your learning the business would be nice to have.
But, once you feel like you have a handle on things (for most people that is about 6-12months down the road) you are going to want a significantly higher commission. probbly in the range of 80-100+% for life insurance
 
Re: New Agent Salery and Commission Question

I would ask at what date the training period is over and you can write fully on your own. Make him make a commitment.
 
Re: New Agent Salery and Commission Question

80-100% commission on life sales won't happen in a captive environment. Allstate is a "captive" agency where you sell Allstate products before mentioning other company solutions.

Yes, you're new. You've been offered a small base, but a good commission while working for another agent. Take it and run with it. You can't do better until you learn what you're doing.

However, this is what concerns me the most:
for the past few weeks I've been coming into the office and I made 2 sales so far.

You've only made two sales... and now you want to know if his offer is "any good"????

You need to prove to him (and MORE importantly yourself) that YOU are "any good".
 
Re: New Agent Salery and Commission Question

There is a lot of stuff that is unclear before you can really judge the offer.

1. Where are your leads coming from? Are you calling on his book of business, is it people who asked about life insurance, are you buying leads or otherwise generating your own prospects?

2. Is it 20% of premium or 20% of the commission he receives. At a captive, he is almost certainly receiving less than 100% commission, probably in the neighborhood of 60%. So that could be 20% of premium or 12%.

3. How many presentations have you made in the last two weeks? Did he help you?

There are only two things that would make this a viable option in my opinion. He is going to give you tons of training and/or have a steady stream of viable prospects for you.

Here is the math just to make roughly 20,000 a year. You need 200 in commissions to go with your 200 in base. That means if you are getting 20% of premium you need to sell 1000 in annual premium. If you did that on a 100% contract, you would make 1000 versus 400 for the week. If payments are monthly, they you have advances and whether or not you'll be advanced and what percentage of the first year commission you'll receive up front.

Also, food for thought. Minimum wage of 7.25 an hour times 40 hours is 290 a week.

So after all that, he may just be telling you to go away without having to say it.
 
Re: New Agent Salery and Commission Question

I'll clarify the situation more, I've helped sell 2 non life policies so far.

1. So far he has given me his own book of business to call and set up appointments with, I haven't discussed with him whether or not he'll be getting leads or not. To some extent I would prefer to go out on my own and build my own leads, but I do think he is going to provide me with leads.

2. He is going to give me 20% of the entire premium, not his own commission. I've clarified him on this.

3. I made one presentation to someone a week ago and they weren't interested. He has assured me that any time I need his help, he's more than willing to come with me and help me out with presentations and appointments.

More back story to this, he told me that he is rebuilding his business. I'm told that he used to have 20 agents working for him about 10-15 years ago. He's also told me he'll buy me a laptop of my choosing for me to do business with, I've confirmed he's not taking it out of my pay or anything like that.

Lastly he told me that as I do better, he'll increase my commission and salary. I really appreciate all of your responses, definitely will give me something to think about.
 
Re: New Agent Salery and Commission Question

I'll clarify the situation more, I've helped sell 2 non life policies so far.

1. So far he has given me his own book of business to call and set up appointments with, I haven't discussed with him whether or not he'll be getting leads or not. To some extent I would prefer to go out on my own and build my own leads, but I do think he is going to provide me with leads.

2. He is going to give me 20% of the entire premium, not his own commission. I've clarified him on this.

3. I made one presentation to someone a week ago and they weren't interested. He has assured me that any time I need his help, he's more than willing to come with me and help me out with presentations and appointments.

More back story to this, he told me that he is rebuilding his business. I'm told that he used to have 20 agents working for him about 10-15 years ago. He's also told me he'll buy me a laptop of my choosing for me to do business with, I've confirmed he's not taking it out of my pay or anything like that.

Lastly he told me that as I do better, he'll increase my commission and salary. I really appreciate all of your responses, definitely will give me something to think about.


It doesn't sound like too bad of a situation.
One piece of advice in this business, don't be shy!
He is there to teach you and help you learn to be self-sufficient. Take advantage of the opportunity. Ask lots of questions.
 
Don't forget to take into consideration you say he is 84 so how much longer does he plan to be in business and what happens when he shuts down?
 
Hey wait a minute! How many forums did you post this question to? I recall answering your question on reddit earlier today. . . Too lazy to post a link.
I probably should sell insurance instead of playing on the internet. . .
 
I'd like to thank everyone for their helpful input, its really helped my morale on the situation. I'm going Thursday to get some office equipment with the executive agent and my new laptop. Will definitely take all your advice and I very much appreciate all of it!

Also, yes that was me that you answered on reddit earlier, wanted a lot of opinions and got them for sure!
 
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