Offer to Become an Insurance Agent at a Growing Agency...

[Texasproducer]

I about to graduate with my undergrad and have an opportunity to start with an ambitious indepence p&c firm based in Dallas.

I have did some research with current employees and wanted to check these numbers to make sure they were the industry norm or better.

The agency handles all overhead, (office space, E&O insurance, appointments with 15 companies, service staff, training program, etc...) Benefits are optional.

They company supplies warm internet leads that you can call. Expected production is between 10K and 15K per month in revenue for the agency. The commission split is 15% over 7500 and 25% over 12000, this includes new business and renewal. Base salary is 35K so that is comforting in case I struggle. You don't have any ownership of your book so if you leave your investment is gone.

Is this a pretty standard setup or is this below the norm. Feel free to reply to this form or pm me.

 

[DHK]

Looks pretty good - for starting out.

The pros:
- You're working with people who know what they're doing (excellent for on-the-job training)
- Base salary
- No overhead costs incurred by you.

The cons:
- Working warm leads generated by their website (or other means) means that you are NOT learning how to prospect for business on your own.
- You can't take your clients with you when you leave (but that doesn't stop them from calling you and having you be their agent). Just make sure you document how they contacted you.

I have no opinion regarding the commission splits and tiers as I've never worked in a P&C agency.

If you're looking to become an independent agent one day, you'll need to learn how to prospect for business on your own.

 

[HomeService]

I do not see how they can afford the commission split plus the 35K a year, I am guessing that 35K is a draw against future commissions. Ask them if you quit after 11 months and 28 days, if you owe them back that 35K.

 

[ineedhelp]

I hope you aren't an English Major.

 

[xrac]

Sounds good to me. Jump in and get you feet wet!

 

[Texasproducer]

I hope you aren't an English Major.

Ha ha. Nope. I should have proofread my entry.

 

[VolAgent]

I do not see how they can afford the commission split plus the 35K a year, I am guessing that 35K is a draw against future commissions. Ask them if you quit after 11 months and 28 days, if you owe them back that 35K.

He should ask, but probably shouldn't worry. They don't pay him a dime in commission until he's made them 7,500 for the month. Also, while I'm sure they will give him some time to get his feet under him, I bet its "Produce or leave."

 

[Texasproducer]

He should ask, but probably shouldn't worry. They don't pay him a dime in commission until he's made them 7,500 for the month. Also, while I'm sure they will give him some time to get his feet under him, I bet its "Produce or leave."

Yeah. From what I hear it's produce or leave. You don't have to pay the 35K back. From what I've read TWFG is another big agency in Texas and they do an 80/20 split with no base. Does anyone know more detail on their setup and what overhead they provide? That's a huge commission difference. And I wonder if it's just new business or also renewals.

 

[VolAgent]

Yeah. From what I hear it's produce or leave. You don't have to pay the 35K back. From what I've read TWFG is another big agency in Texas and they do an 80/20 split with no base. Does anyone know more detail on their setup and what overhead they provide? That's a huge commission difference. And I wonder if it's just new business or also renewals.

While I don't know much about P&C, just think about it. That is a HUGE difference in commission. Not only can you expect next to no support other than access to markets and raters, you can probably expect a bill for rent and supplies. They may or may not forgive the bill if you produce enough. FYI, that is how most captive life shops are set up. After a year or so to get in the business, you have to pay for what you use.

 

[Texasproducer]

Let's say I produce 12k a month. After one year I'd make around $43k. With an 80/20 split I'd make 115k. That's enormous. I really only need the training and access to carriers. Servicing and E&O are a must too.