What Does the Avg. Agent Make on A...?

[Gulfman]

That totally depends on the agency. If they own the agency, they're getting the whole take. If they work for the agency, they're either getting a salary + commission...or 100% commission so again...it's totally dependent upon the situation.

Thanks 1822,

Lets suppose (like in my example) they don't own the agency...they just work there. What can they expect?

thank you.

 

[insurance1822]

If it's a captive agency, they're probably getting paid a salary + a minor commission. I've seen State Farm agents pay $10 per new policy & I've seen some agencies that pay the full new business commission which is 10-18% of the annual premium.

It's literally...impossible to know. I think it's sufficient to say that if they're a personal lines producer working for an agency, they don't make good money & there's really not much for them to give up.

 

[BuckeyeR]

My experience is the agency gets 10-15% of WP-then the split varies

 

[GXR2]

Every agency has a different commissions structure.

The independent agency I work at is commission only. The most one can make is 10 new but you'd have to be Jesus and walk on water to make that. The reality is 8 new if you jump through all the hoops but can fluxuate down if you aren't producing all the little variables required that can ding the commission. Renewal is 4 at best.

I realize now the only way to make serious money is to be your own boss. The agency's rebuttal is sure you can make more money but subtract all your expenses and you'd net the same income. I'm not too sure I agree with that assessment.

I think they're comparing themselves to a captive career like a Farmers, ect.. where you have lots of overhead costs.

 

[Gulfman]

Thanks for the responses Guys!

Now, i can't figure this? Talked to "my pc agent" who writes my homeowners, and he claims he did 600 policies last year! (he's only been at it 3 yrs)----???

My math shows this: 600 policies x ann. prem of avg (120k) = 72,000,000.-----Now, 8% of that is 5mil plus! (his take home?)

No way is he making that kinda money?

What am i missing?

 

[pfg1]

You are using the homeowners insurance amount, not the premium.

 

[Ron Van D]

thanks for the responses guys!

Now, i can't figure this? Talked to "my pc agent" who writes my homeowners, and he claims he did 600 policies last year! (he's only been at it 3 yrs)----???

my math shows this: 600 policies x ann. Prem of avg (120k) = 72,000,000.-----now, 8% of that is 5mil plus! (his take home?)

no way is he making that kinda money?

What am i missing?

600 x $1600 = $960,000

$960,000 x 8% = $76,800

 

[cgreene]

I pay 10 new 8 renewal I pay little less if it is an account I established or a lead I generated.

 

[Gulfman]

600 x $1600 = $960,000

$960,000 x 8% = $76,800

Whoa boy do i feel dumb (been under a little stress).

Ok, got it now. That makes sense. Thanks very much!

 

[cgreene]

Now take expenses out of that and you will see what he is talking about