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

[Hawaii Agent]

@Caleb94 it'll all depend on what you're looking for. It sounds like you're not afraid of getting your hands dirty making 500 calls in a day so you could be a real asset to any agency. If you're looking to learn personal lines, I think a lot of us believe that State Farm has really good agents that you can work for and learn from. In the long-term, the agents don't pay much and as a whole it's becoming more and more difficult to grow a State Farm agency like in the past. If you do go this route, make sure you find out how many internet leads they're purchasing and how much you get paid if you bind one. This is where you'd make the agent look like a star and you in turn should be handsomely rewarded for your efforts. Good luck with your next step and keep us in the loop! We like to hear others successes (especially new guys)

 

[Caleb94]

@Caleb94 it'll all depend on what you're looking for. It sounds like you're not afraid of getting your hands dirty making 500 calls in a day so you could be a real asset to any agency. If you're looking to learn personal lines, I think a lot of us believe that State Farm has really good agents that you can work for and learn from. In the long-term, the agents don't pay much and as a whole it's becoming more and more difficult to grow a State Farm agency like in the past. If you do go this route, make sure you find out how many internet leads they're purchasing and how much you get paid if you bind one. This is where you'd make the agent look like a star and you in turn should be handsomely rewarded for your efforts. Good luck with your next step and keep us in the loop! We like to hear others successes (especially new guys)

Thanks so much!! I’ll definitely continue with updates! I was actually offered a position at a local State Farm agent office before accepting my current job. He hired me on the spot but then threw a contract down in front of me that had a 3 year non-compete, with a 50 miles radius, which I’ve been told is extreme and not to sign. Then when I told the agent I needed a day to think about it he got very irritated with me, and I declined the position. So I have a bad experience with State Farm, but I guess every agent is different.

And I’d like to start out with personal lines, but I wouldn’t mind going the commercial route as well.

 

[Tahoe Ray]

Thanks so much!! I’ll definitely continue with updates! I was actually offered a position at a local State Farm agent office before accepting my current job. He hired me on the spot but then threw a contract down in front of me that had a 3 year non-compete, with a 50 miles radius, which I’ve been told is extreme and not to sign. Then when I told the agent I needed a day to think about it he got very irritated with me, and I declined the position. So I have a bad experience with State Farm, but I guess every agent is different.

And I’d like to start out with personal lines, but I wouldn’t mind going the commercial route as well.

It looks like non-competes in Michigan aren't enforceable after 1 year. In case you run into this again...see attached.

 

[Hawaii Agent]

Thanks so much!! I’ll definitely continue with updates! I was actually offered a position at a local State Farm agent office before accepting my current job. He hired me on the spot but then threw a contract down in front of me that had a 3 year non-compete, with a 50 miles radius, which I’ve been told is extreme and not to sign. Then when I told the agent I needed a day to think about it he got very irritated with me, and I declined the position. So I have a bad experience with State Farm, but I guess every agent is different.

And I’d like to start out with personal lines, but I wouldn’t mind going the commercial route as well.

You definitely need to find the right fit for you. That agent is probably one of 5 within 50 miles so you can find another that may be a decent human being. Remember what you are bringing to the table is so much different than what they already have. Think of the win-win when negotiating. You'll bring in a ton of new business to them (they get bonused on policy count over premium) and they will be there to teach you the right way to do personal lines business while compensating you for your efforts. Even if it's not State Farm, you can be a true asset to any agency that does personal lines and already is ordering leads.

You also want a way to carve out your own personal network from any non-compete/do not solicit agreement. Maybe if you bring them the name & dec pages well in advance or you can keep a running list with their approval prior. EVERYTHING is negotiable for a good employee (unless you go corporate).

Now if they don't already order leads, that's a different story. I personally wouldn't want all the extra work that comes with daily new auto clients (especially after you leave). But State Farm, Allstate, Liberty Mutual, Farmers, etc., they all want volume which it sounds like you'll be able to bring to the table. Good luck!

 

[Markthebroker]

Remember what you are bringing to the table is so much different than what they already have. Think of the high risk to them when negotiating. You'll bring in a some new business if they are lucky (they get bonused on policy count over premium) and they will need to use resources to train you the right way to do personal lines business while compensating you for your efforts, effectively a double cost and a double risk to them. Even if it's not State Farm, you can be a true risk and expense to any agency in time, cost, resources and e&o, and hopefully one day an asset to an agency that does personal lines and already is ordering leads.

Fixed that for you.

 

[Markthebroker]

It looks like non-competes in Michigan aren't enforceable after 1 year. In case you run into this again...see attached.

Non competes are completely unenforceable in Ca, but they can tangle you up in court and make your life a nightmare.

 

[Tahoe Ray]

Non competes are completely unenforceable in Ca, but they can tangle you up in court and make your life a nightmare.

I hear that...like Keynes talking about the stock market: "it can remain irrational longer than you can remain solvent"

 

[Markthebroker]

I hear that...like Keynes talking about the stock market: "it can remain irrational longer than you can remain solvent"

Wow, that's a really good quote. I'll have to remember that one.

 

[matt0420228]

Have you thought about getting your life insurance license?