Tell Me What You Think About This Deal I Was Offered?

[AtlantaLife&Health]

I checked out a local agency. I'd be responsible for getting my own leads. He has two girls who work in the office who handle calling clients if they miss their payments. He's offering 40% on new business and 30% on renewals. While I am inexperienced, I do feel as if this deal benefits him more than it benefits me. I could be wrong. If so, let me know. I do think it's cool to have guidance when needed from an experienced agent. I do think it's cool to have a nice office to work out of. But I won't own my book of business. If I work with the guy for a couple of years and decide I want to go elsewhere or get direct appointments, I'll be starting from scratch. I'm wondering if I should try to start somewhere at a level I won't mind staying at. Please share opinions.

 

[NCAgent]

I checked out a local agency. I'd be responsible for getting my own leads. He has two girls who work in the office who handle calling clients if they miss their payments. He's offering 40% on new business and 30% on renewals. While I am inexperienced, I do feel as if this deal benefits him more than it benefits me. I could be wrong. If so, let me know. I do think it's cool to have guidance when needed from an experienced agent. I do think it's cool to have a nice office to work out of. But I won't own my book of business. If I work with the guy for a couple of years and decide I want to go elsewhere or get direct appointments, I'll be starting from scratch. I'm wondering if I should try to start somewhere at a level I won't mind staying at. Please share opinions.

Is this P&C? I will assume so based on what you mentioned here but if not please correct me and tune it accordingly. If so it seems fairly decent depending on what he provides. Do you get a rater and all software provided? E&O covered for you? That's like 2-4k Does he train you? Do you get office space for free? You are given the tools to do nothing but selling since there are 2 people there to service the policies so a lot of the time spent on servicing is spent for prospecting.

If you are basically given everything and you just have to go out and sell how you want to sell, and generate leads how you want to generate leads, then I think it's a pretty good deal. I am getting 50 and 50 but I have to work from home, use my own phone, and service all of my policies how I need to service them, including the non-standard lines. So it seems somewhat reasonable but also look to see what carriers there are. I'd ask for a little bit more for commercial simply because they generate huge amounts of premium *typically* and *typically* have a higher % from the carrier than personal lines.

There are a lot of costs associated with

 

[AtlantaLife&Health]

Yes, it's P&C. I'd have to pay $250 for E&O. I don't think I'd have my own office. I'd get to meet with clients at the office though if need be. He said they have all the systems in place so I'm assuming rater software is included. I'll look into it. I do feel the training would be top notch and support would be strong. I just don't want to get jacked on commission. I'll probably ask him what type of production would warrant an increase in commission.

 

[NCAgent]

Yes, it's P&C. I'd have to pay $250 for E&O. I don't think I'd have my own office. I'd get to meet with clients at the office though if need be. He said they have all the systems in place so I'm assuming rater software is included. I'll look into it. I do feel the training would be top notch and support would be strong. I just don't want to get jacked on commission. I'll probably ask him what type of production would warrant an increase in commission.

Dude 250 bucks a year for E&O is pennies. I wouldn't even count that as part of a downside for you. As for using an office, that's fine. You can work there or from home and then you have a place for people to meet you that is professional, without having to pay a monthly lease. Software is included and you have CSRs for servicing your policies. By own office I just meant like, your own space, desk, cubicle, etc.

And you're always going to be jacked on commission in your eyes until you work for yourself. It's part of the game. If they weren't making money off you then they wouldn't want you there. Think of the cut as paying for the education, like in college. But rather than pay money you don't have, you just receive less money that you were never going to earn before

 

[Insurance-Guy]

I offer on straight commission 60% NB and 30% RN. If it is base plus commission I offer the base (300-350), benefits, 50% NB and 25% RN.

You are being hired as a producer and you can make good money with the contract you described. The key is all you have to worry about is selling. Trust me the grass may be greener on the other side but IT IS much harder to mow!

 

[OCinsurance]

I quote a decent amount of e and o, and if you are only paying $250, that is great. Make sure to get something in writing showing that coverage extends to you.

Despite what many people think, the cost of running an agency and having staff to service things can be expensive.

 

[leevena]

I am assuming it is life and health...see his name. But either way, all things considered, the deal is not that bad. You state you are inexperienced so think of it as a learning experience. If you do become very good at this, you can either cut a better deal with the agency or go out on your own. And, you might want to pencil out what his overhead costs are. I think you will be surprised. I was clueless until I saw the actual costs of running an agency.

 

[djs]

E&O for $250 a year or $250 a month? $250 a month is more the going rate for P&C coverage.

To many details missing to really give much advice. Here are some followups for you to think about:
- Who provides leads? The agency should at least provide access to calling lists. I would not expect them to buy you netquote style leads and give you a split though.
- Who pays the bills? This adds up to some decent money depending on the line of insurance. Start thinking about phone, including cell phone, mileage on your car, printer, fax, ink, paper, etc. Expect to pay all of this, but plan for it in your budget.
- Who deals with client service calls? Somebody needs to change a car on their policy, who do they call? If its you, you'll need a bigger split. Providing certificates of insurance, proof of insurance, change endorsements, etc, adds up to a lot of time for a decent agency. This takes you away from prospecting / selling.
- I'll assume the agency pays for the raters and management system. You'll need to confirm this. You can't get past go without a decent rater.

Lots to think about.....

Dan

 

[GreenSky]

Yes, it's P&C. I'd have to pay $250 for E&O. I don't think I'd have my own office. I'd get to meet with clients at the office though if need be. He said they have all the systems in place so I'm assuming rater software is included. I'll look into it. I do feel the training would be top notch and support would be strong. I just don't want to get jacked on commission. I'll probably ask him what type of production would warrant an increase in commission.

I thought you were selling more medicare supplements then you could handle.

What happened to that deal?

Rick