Question about commission % at new/first insurance job. Is this bad or normal?

[Hawaii Agent]

Good catch @somarco; however, his math checks out when he says if you sell $1k, you get $60. Unless his sales are counted based on commissions (how many $1k commission personal autos are being sold?). Also it then becomes someone selling $35k/mo. in gross comp which seems amazing.

My question then becomes why is the company only receiving 40% of the commissions? @Caleb94 are you working as a sub-producer for a sub-agent? I'm confused and may need to start a thread about how agency/agent/sub-producers work.

I know that we're super small in Hawaii so we don't get the same opportunities. I genuinely want to learn how the real world works!

 

[cador]

What P&C Company pays 40% commission? Do they just pay way less in Hawaii?

40% of the COMMISSION is not the same as 40% of the PREMIUM


That's what I was thinking upon first reading it (that maybe his Co splits and gets 40% "of" commission vs 40% commission), but his math equals 40% commission, as with his example a $1000 policy at 40% commission, is $400, which at 15% equals his $60 commission which he states.
But...something ain't right....

 

[cador]

Good catch @somarco; however, his math checks out when he says if you sell $1k, you get $60. Unless his sales are counted based on commissions (how many $1k commission personal autos are being sold?). Also it then becomes someone selling $35k/mo. in gross comp which seems amazing.

My question then becomes why is the company only receiving 40% of the commissions? @Caleb94 are you working as a sub-producer for a sub-agent? I'm confused and may need to start a thread about how agency/agent/sub-producers work.

I know that we're super small in Hawaii so we don't get the same opportunities. I genuinely want to learn how the real world works!

20 Max. No one gets/gives 40% commission on P & C, 10-15 normal (except WC can be lower), and maybe 20% max (on some HO's, not sure if there are still auto carriers paying 20).

 

[Caleb94]

I lasted about a year in 1998 doing this...it is soul-sucking. Even when you hit on a great prospect or two, the next day it goes right back to more of the same (even if you have a little more money in the bank).

I’m starting to understand this even after a few weeks already. May I ask, what type of agency should I look for and apply for as a beginner for P&C? Every place I’m going for so far seems to have something sketchy about them.

 

[Tahoe Ray]

I’m starting to understand this even after a few weeks already. May I ask, what type of agency should I look for and apply for as a beginner for P&C? Every place I’m going for so far seems to have something sketchy about them.

I'm the wrong person to ask as I only do life/health.

Maybe ask in the P&C forum?

 

[Caleb94]

I'm the wrong person to ask as I only do life/health.

Maybe ask in the P&C forum?

I'm the wrong person to ask as I only do life/health.

Maybe ask in the P&C forum?

Thanks! Will do.

 

[DayTimer]

May I ask, what type of agency should I look for and apply for as a beginner for P&C?

I'd hunt down @Markthebroker and see if you can catch him in a good mood. My guess is you should be looking to go independent as soon as possible, while accepting that the first two years can be quite lean. I am not a p&c guy so that is just a guess based on what I've heard from a few p&c guys.

Also, @thomasm knows a much better way to for you to generate leads than cold calling on the telephone - at least, it used to be a better way. Now, with covid, who knows?

 

[Markthebroker]

Hi! So I recently started a new job at an insurance broker, it’s my first job in insurance. They sell/work with 17 different insurance companies. (progressive, safeco, nationwide, etc

So they are on the smaller side as far as full p&c brokers go, then. 17 may be enough for what sounds like personal, but it's not what I would call a full brokerage.

I have my property and casualty license, however I’m starting out the first month as a lead aggregator making 500-600 calls a day to try and get leads transferred to our agents.

500-600 calls a day is both ridiculous and unsustainable. It sounds like one of those bs goals they dangle over your head so that no matter how many calls you make, it's never enough.

I would try to get promoted to salesperson as fast as possible, because the lead aggregator position doesn't sound sustainable. Then, if you want to rack up some experience, stay there for a while. It sounds like this is personal p&c. Start looking into commercial p&c too. Commercial has more money, higher retention, and will be affected by the internet while personal p&c will be largely decimated by it.

 

[DHurd]

Prospectboss you can make 600 dials in an hour easily. I talked to like 80 people that all said no instantly so it's not really great doing that. But I didnt have some really good catchy opener either but I still dont imagine it's much better. What you're doing they pay filipinos 2 dollars an hour to do

 

[Caleb94]

So they are on the smaller side as far as full p&c brokers go, then. 17 may be enough for what sounds like personal, but it's not what I would call a full brokerage.




500-600 calls a day is both ridiculous and unsustainable. It sounds like one of those bs goals they dangle over your head so that no matter how many calls you make, it's never enough.

I would try to get promoted to salesperson as fast as possible, because the lead aggregator position doesn't sound sustainable. Then, if you want to rack up some experience, stay there for a while. It sounds like this is personal p&c. Start looking into commercial p&c too. Commercial has more money, higher retention, and will be affected by the internet while personal p&c will be largely decimated by it.

Thanks for the advice!! I think I’m leaving this place, I’ve made it through 3 weeks so far. They said me and a couple other people are starting agent training in March. However they just dropped it on me that they need me to get a list of 50 friends/family to practice quote during my training. Nobody mentioned that when I was hired.

Also apparently that is the extent of your training. If you don’t get that list they don’t train you or barely help you at all. Does that sound right? Anyway would Farm Bureau be a decent place to start out at? I’m thinking about reaching out to a guy who wanted to hire me before accepting this current job.