roguesgloves
New member
Throwaway account because I don't want to get found for this post.
Background
I recently started in the insurance business about 6 months ago. When I was getting hired, we talked about once I was licensed, I would start making commissions on top of my base salary. We're a small team of 2 silent biz partners, 1 active partner & agent, and 1 more agent, me. So... basically a team of 2.
Based upon my understanding of what previous agents had earned, they got a base of $3k + a % commission. My boss had briefly told me that the agent before me got paid whatever commission the company got paid minus 5% and implied I would get something similar. So I was staring down the barrel of 4-8%+ recurring commissions! The base seemed low, but the commission sounded awesome!
Being in Dallas Fort-Worth area, the base is borderline unlivable, but that comp plan seemed awesome.
(TLDR: 5 years tech & restaurant sales experience, new to insurance industry, part of a small mainly-personal-lines P&C and L&H broker, I was told I would get commission on top of my base)
The Problem
So I got licensed, closed a good sized home & auto deal ($9k) and said, "The commission on this will be great! If I just sell 10 more of these in a month, I'll make my personal goal!"
I said that in front of my boss and a partner.
My boss gave me a weird look. I said, "What? Am I not getting commission?" He said, "Well we haven't talked about that." The partner was like, "Before we get ahead of ourselves, we haven't put together your official comp plan. I'll create that so we're on the same page."
The next day, they gave me this... I think this is insane. But they wouldn't budge.
Ready?
The Comp Plan
$3.2k/month base
First 10 personal lines P&C: $50/deal
After that: $100/deal
Umbrella/renters: $25/deal
Life & health: 30% of revenue (ie, premium is $1000, if we get $850 in commission, I get $255).
4% of premium on renewals
Agency owns the book
I do my own servicing
Here's the kicker: That 4% of renewals? That's only if the customer doesn't switch carriers. So if I switch an existing client from Progressive to Travelers, it resets to the $50 or $100/deal- NOT 4%.
Am I getting screwed?
Background
I recently started in the insurance business about 6 months ago. When I was getting hired, we talked about once I was licensed, I would start making commissions on top of my base salary. We're a small team of 2 silent biz partners, 1 active partner & agent, and 1 more agent, me. So... basically a team of 2.
Based upon my understanding of what previous agents had earned, they got a base of $3k + a % commission. My boss had briefly told me that the agent before me got paid whatever commission the company got paid minus 5% and implied I would get something similar. So I was staring down the barrel of 4-8%+ recurring commissions! The base seemed low, but the commission sounded awesome!
Being in Dallas Fort-Worth area, the base is borderline unlivable, but that comp plan seemed awesome.
(TLDR: 5 years tech & restaurant sales experience, new to insurance industry, part of a small mainly-personal-lines P&C and L&H broker, I was told I would get commission on top of my base)
The Problem
So I got licensed, closed a good sized home & auto deal ($9k) and said, "The commission on this will be great! If I just sell 10 more of these in a month, I'll make my personal goal!"
I said that in front of my boss and a partner.
My boss gave me a weird look. I said, "What? Am I not getting commission?" He said, "Well we haven't talked about that." The partner was like, "Before we get ahead of ourselves, we haven't put together your official comp plan. I'll create that so we're on the same page."
The next day, they gave me this... I think this is insane. But they wouldn't budge.
Ready?
The Comp Plan
$3.2k/month base
First 10 personal lines P&C: $50/deal
After that: $100/deal
Umbrella/renters: $25/deal
Life & health: 30% of revenue (ie, premium is $1000, if we get $850 in commission, I get $255).
4% of premium on renewals
Agency owns the book
I do my own servicing
Here's the kicker: That 4% of renewals? That's only if the customer doesn't switch carriers. So if I switch an existing client from Progressive to Travelers, it resets to the $50 or $100/deal- NOT 4%.
Am I getting screwed?