Pay structure?

Dec 27, 2018

  1. Linz
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    Linz New Member

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    I spoke to an agency owner today who offered me a position...
    First year salary would be 50,000 with a 50/50 split on new business and 30% on renewal. I have some experience, but have not done employee benefits full time.
    Is this a typical split? Should I ask for more?

    Thanks!!
     
    Linz, Dec 27, 2018
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  2. leevena
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    leevena Guru

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    On the surface I would say yes, but the key is if you can survive on this until your business grows. What is the amount of income do you need, and when can you reach that?

    You said you have some experience with benefits, what does that mean? Big difference between being in a position that is non-producing and one that may be selling life insurance and will now pivot to benefits. Can you sell?

    You may want to share more info, such as types of products you will be selling, what your expected revenue goals will be, etc. Will help to answer your question. Good luck.
     
    leevena, Dec 27, 2018
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  3. Linz
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    Linz New Member

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    Thank you for your reply. Yes, $50,000 would be enough for me to start.

    I worked with an independent Benefit broker for 2 years part time. I helped with accounts and had a few I managed of my own.
    I can sell as I have done it in the past, but can definitely improve.
     
    Linz, Dec 29, 2018
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  4. WTX2WY
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    WTX2WY New Member

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    "First year salary would be 50,000 with a 50/50 split on new business and 30% on renewal."

    What is the 50/50 split based on?

    As an example, say if you were straight commission and you earned 60% on a supplemental policy and the GA had a 20% override from the company. Are you splitting the total 80% or splitting the 60%?

    Same question for renewals. Say you earned 10% and the GA had a 10% override. Does that mean you would get 30% of the 10% or 30% of the full 20% paid to the agency by the insurance company?

    This is probably a very basic question with an obvious answer, but I have always been a straight commission guy and just wondering how the other side works.

    Also, if anyone is experienced with supplemental companies (Aflac, Colonial, Washington National, etc), does the GA typically get an 80/20 contract or is it even higher? Assume independent, not company man.
     
    WTX2WY, Jan 9, 2019
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