Pay/salary-Does this seem right?

[Guest]

I am looking into taking an agent position w/Horace Mann. For those of you who don't know, they deal mainly w/teachers. I would be selling auto insurance, annuities and life insurance.

I would be making $300/week in salary. This would be the minimum and would go up over time. I would not lose this. I would also be making commissions, based on the other newbies at the office, I would be making around $25k/yr in commissions to start. So, overall, around $40k my first year.

My question is: Does it seem right that all of my new business policies would not be listed under my name for renewals?

They would all go under the main agent who runs the office, I would just make money on new business. Over time, my commission structure would go up, so if I was at like a 1.25 for the first year on new business, it would bump up to 1.50 for the next year, etc. The 1.25 and 1.50 aren't exact numbers, they were just used for demonstrative purposes only.

Any help is GREATLY appreciated.

 

[STIBROKER]

I am looking into taking an agent position w/Horace Mann.

The writer....I thought he was dead......

 

[Sam]

It sounds like a decent salary, if you will get strong training. Try to meet with the manager and see if he is someone you can respect and learn from, of if he is sleazy.

 

[Guest]

It sounds like a decent salary, if you will get strong training. Try to meet with the manager and see if he is someone you can respect and learn from, of if he is sleazy.

Thanks Melmunch3,

but does anyone know, is it a common practice to not have new polices in the new agents' name?

Hence, no $$ coming in from renewals. Just from an increased new policy payout commission structure?

 

[ToughCaseUnderwriter]

In the long run that structure is a loser for you. The problem is with no experience, an independant shop might be hard to get into. You should try and worst case do this for a year and get your self well educated and then you can go another direction.

 

[Guest]

In the long run that structure is a loser for you. The problem is with no experience, an independant shop might be hard to get into. You should try and worst case do this for a year and get your self well educated and then you can go another direction.

Thank you, I was planning on learning the ropes for a few years until I could start my own agency.

 

[Mr. Bill]

I would also recommend looking into other training programs as well. There's no need for a producing agent's renewals to go to a manager in 2nd year - think about it, they're almost telling you you won't make it past year 1 and they're just preparing in advance.

 

[wilkin]

I think the arrangement they are offering sounds about right for a captive office. They have confidence in you succeeding if they are willing to pay the $300 salary. If they are providing office space, supplies, name recognition AND leads, they deserve to keep renewals in their name. However that doesn't mean they will not pay you well in year 2, 3, etc. If you do well they will want to keep you around and will increase your salary or commission or some combination of both.

If you do REALLY well you will know if and when the time is right for you to move on to another agency or start your own. I would be totally committed to this company for at least a year or two to soak up their training and get experience.

Good Luck!

 

[tkirk97]

Mr. Bill, in a P&C agency i don't think you will find one that will put the piece of business in an agents name. But I do agree that on life insurance there is no need for you to assign commissions to an agency, but i can also see why they do it, they are paying a salary so that is there security net.

 

[MIBizInsurance]

As mentioned- P&C the biz go's under the owners name.

Often if not always there is a written agreement on how much the captive agent will be compensated if and when they leave or agency is sold.

Example - Agent has a 3 mill book of biz and the owner wakes up and decides to sell agency. The agent would receive
X amount over a period of time. Many times this is done over a period of time as this is to the advantage of owner. He/she figures that the book will decrease and as such payout will also.


Would not get to caught up in ownership at this point as most owners really aren't going to spend allot of time on the matter. Odds are you will come and go like most agents. If an owner spends allot of time on how you will own the biz one day be very careful. Odds are they are just blowing smoke....

Bring up how compensation works if you stay for long term but again look at training and support.