Salary vs. Commission

[Advisor06]

Why do you do what you do? Many times I ask myself if a salary would be "easier" than working in commission only. BUT...I like control over my schedule and the possibility to earn higher than a salary.

Have you been in this position? I have always said it would be tough to walk away.

 

[pfg1]

Control over time is a huge benefit (to me) vs. a guaranteed paycheck. I can't say there haven't been times in my indy career that I wished I had a salary instead of being on commission, but I just never could do it.

In this industry salaries are low, and as an indy we're only one meeting away from a big paycheck. That has always driven me. And of course "big" is in the eye of the beholder.

 

[insurlegend]

Control over time is a huge benefit (to me) vs. a guaranteed paycheck. I can't say there haven't been times in my indy career that I wished I had a salary instead of being on commission, but I just never could do it.

In this industry salaries are low, and as an indy we're only one meeting away from a big paycheck. That has always driven me. And of course "big" is in the eye of the beholder.

Have any stories of agents you've heard of getting big checks?

 

[shonceman]

I like to feel like I’m in control of my time, yet I work much longer hours than I would if I were still an employee. But I’m in charge of me. I don’t have to ask permission if I need a day or two. I might occasionally have to make a few phone calls to reschedule appointments, but I don’t need anybody’s permission.

Another big thing for me is control of what I do, how I do it, who I work with, etc. If I feel I need to make a change, I just do it. I don’t have to submit my idea to upper management or wait for a lengthy approval process (oh - and corporate never approves!).

I also like the flexibility that commission based income makes possible. My month to month pay is actually relatively steady because I mainly work with as earned commissions instead of advances. But if I found myself in need of some extra money for one reason or another, I can get it by just working a little harder for a bit. Or maybe just write an advanceable case or two. That would be more difficult to pull off as a salaried employee.

 

[pfg1]

Have any stories of agents you've heard of getting big checks?

Sure. I know plenty who have made a big check and I've made some. But again, what is a big check? To some it might be $5,000, others it might be $50,000 or more. Being on commission you have that opportunity.
One of the hardest parts for me was the up and down income. Make alot one month, not much the next, etc. And as was mentioned, as earned is always good...smooths that out a little.

One mistake I made early on, I'd have a really good month or make some big checks, and let off the gas because the pressure was off. That only adds to the ups and downs. Always keep the pipe as full as you can.

 

[rousemark]

Why do you do what you do? Many times I ask myself if a salary would be "easier" than working in commission only. BUT...I like control over my schedule and the possibility to earn higher than a salary.

Have you been in this position? I have always said it would be tough to walk away.

Even if you are on salary, in the final analysis you are on "commission" because if you don't produce, you will be terminated.. The only real difference there is a ceiling on how much you can earn when on salary.

 

[goillini52]

Even if you are on salary, in the final analysis you are on "commission" because if you don't produce, you will be terminated.. The only real difference there is a ceiling on how much you can earn when on salary.

And the fact that you're not your own boss.

 

[vic120]

Even if you are on salary, in the final analysis you are on "commission" because if you don't produce, you will be terminated.. The only real difference there is a ceiling on how much you can earn when on salary.

Just reading from the first post down, I thought this all the way through

When I first got into insurance, It was at broker office, It was revolving door, Most were fired within a month from starting, Some 2 months, There would always be 10 new recruits every month

The ones that made it produced, the pressure was always on,

Yes being independent was tough the first 2 years ( I do medicare) But you get what you put in and keep what you put in, So much less pressure, So much more freedom and control, And now much more money as well

Just about every year I have been able to take at least a month off, I love not hearing those Monday meetings after the office had a bad week, I love controlling my won leads.

There was no more job security working for someone, If I have a bad month no one will fire me

 

[Markthebroker]

This is one of those questions that depends deeply on who is asking, their motives, goals, position, etc. It's like asking what's better, steak or fish? Motorcycles or trucks? Should I, or should I not wear my cape today?

The cold hard truth is most people are better at being employees in a salary or hourly position. That's great, because the world needs great employees to run it. Some people are better for independent positions, but that's a lot of rope that many people use to hang themselves.

I've taken a lot of risks, and fallen on my face a few times, but over time enough of them worked out that I came out well ahead. Most people wouldn't have the stomach for it. Many others would be too lazy and just not show up for the challenges.


"The trouble with opportunity is that it always comes disguised as hard work."

Herbert V. Prochnow

 

[WinoBlues]

Have any stories of agents you've heard of getting big checks?

What would be big?