Should your agency give you leads?

Jul 23, 2018

  1. sbg_ben
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    sbg_ben Expert

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    Hello,

    I was just having a discussion with another agent in our office regarding employee benefits agencies and their responsibility to their agents. He as of the opinion that most larger benefits agencies are paying people a salary and giving them leads. I told him that I don't think that is the case and that most agents that sell benefits specifically are on comission only and are responsible to generate the majority of their own leads. The exception being if they are working at a big P&C agency that is trying to cross sell benefits.

    Just looking to hear some opinions on this as we are a small agency and I would like to grow and have more agents over the next few years.

    Thanks,

    Ben
     
    sbg_ben, Jul 23, 2018
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  2. glgamerica
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    glgamerica Super Genius

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    Typically you may get paid a salary based on what commission you generate which is evaluated up or down based on actual commission. It's still full commission but this helps smooth out an agents pay.

    For example, if an agent will generate $100,000 in commission for the year, that's their salary. But if they only made $80,000 then the salary will fall to $80,000. You might evaluate it quarterly.

    As far as leads go, what I've experienced is that nobody gives you leads unless they are orphaned accounts or a prior agents book of business to work. The larger problem with leads in an agency is that there is always another agent who considers the lead theirs when you make progress on it.

    Many agencies have an agency management system in place where agents track activity on clients and prospects as well.
     
  3. Tim Resnick
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    Tim Resnick Super Genius

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    Large Benefit agencies pay a salary and expect their agents to cold call and prospect. What leads are they gonna get anyway? Who would handle the leads? Who gets the leads?

    You gotta get your foot in the door, and that's the agents responsibility. Large benefit corps., pay well, and expect something in return.
     
  4. prospectsforagents
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    prospectsforagents New Member

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    As per records released by the U.S. Bureau of Labor Statistics for the year 2013, on an average, agents earn about $48,000 annually. A number of factors come into play for determining earnings the most important of them is what type of agent you are.
    The most attractive aspect of agents’ earnings is the commissions.
    Different commission range depends on types of insurance. Here are the detailed income stats for all those vertical: bit.ly/agentsinc
     
  5. BADTROUT
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    BADTROUT Guru

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    Remember a producer produces and a processor processes.

    A producer will ALWAYS be more valuable than a processor.

    A processor gets leads and simply works em.

    A producer finds leads, works them.... know the difference and measure you expectation when negotiating your contract.
     
    Last edited: May 14, 2019 at 4:30 PM
  6. Delta75
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    Delta75 New Member

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    Exactly! That's why in the financial world, bank brokers get a much lower payout than independent producers. I just had this conversation with a contracting firm I work with that sells exterior products. They pay X% for a producer generated lead, and we reset the company generated leads to X% - (Bigger Firm Marketing Override). This holds true across virtually every industry. The producers get paid the most and are the most coveted.
     
    Delta75, May 14, 2019 at 4:29 PM
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