If I'm starting work with a captive agency, but as a 1099 independent contractor and 10% commission on home/auto & 20%-45% on life, should I be expected to pay for leads or some sort of lead system? If this is the case, I don't know if I could afford this? I might as well be doing this on my own then right? FYI, I'm commission only, no base pay and no renewal commission. Should I be responsible for lead generation in this situation? I would also like to add, I am not "expected" to service accounts, sales/producer only.
Who Should Pay for Leads?
- Thread starter bleedbama
- Start date
- 11,996
They might be expecting you to generate your own leads vs buying them. There are a number of ways to generate business for an agency that don't involve chasing leads.
- 586
I don't have my P&C license, but isn't the whole point of working P&C to build a solid book of renewals? Putting you on a contract for P&C with no renewals, giving you very low life insurance contracts, all on top of not helping you prospect is pretty bad. They clearly don't want to offer you any incentive to stick around after your initial training stage.
- 183
At those commission levels: no, they should be supplying leads to you. You're getting burned badly.
- 15,041
And he would still be underpaid.
The only way to redeem this is if you are going to get top notch training. The fact you are asking about leads suggests that won't be the case.
- Thread starter
- #7
Thank you for all of your input. I really felt like I was getting burned, but the agency owner I'm talking to is a family friend and I thought I could "trust" her. That's what you get when you try to do business with family friends I guess. Now I will pay her back the money she already reimbursed me for testing and my classes, and I will find a better deal. I'm not sure I would even get any decent training there. It seems that only one person in the office has good knowledge on P&C side. But nobody in the office does "sales". They just sit in there and let people call them, that's why they are only writing 18k premium a month. There is no real business development that goes on there. So as far as training goes, I think its a dead end.
And josh, what are you referring to as alternatives to "chasing leads"?
Thanks everyone!! Your advise was truly helpful!
And josh, what are you referring to as alternatives to "chasing leads"?
Thanks everyone!! Your advise was truly helpful!
- 11,996
A lot of p&c guys genuinely believe they are making a good offer when it's less attractive in reality.
Working off networking, community presence, door knocking businesses, etc.
At that level, I wouldn't write any life business, the personal lines might be more fair, really depends on the carrier and such.
Theinsuranceguys
Expert
- 94
On the p&c side 10% is excellent in my opinion, specially if they are paying you on renewals. Most companies pay 15% to the agency at most. Most independents get somewhere around 50/50, you're already at 66%. The life side however is a different story and that commission percentage seems very low.
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