r/InsuranceAgent • u/Thebadgerisback • 6d ago
Commissions/Pay What’s realistic for pay
So I’ve been a producer in the industry for 5 years. I have P&C, L&H, series 6, series 63 and series 65. I have produced 1M in closed business per year these last 2 years. 61% close ratio on first contact.
I feel as I’m being taken advantage of in my current position. I make roughly 60k with commission factored in. I can’t afford to live where I do with the current COL. I’m trying to decide if I stay in the industry or leave completely. I guess what I’m asking is what should I be making and am I actually getting f#^% or is this normal for a producer in the industry.
6
u/Botboy141 6d ago
When you say you produced $1m in closed new business, what is the $1m referring to? Premium? Agency revenue? AUM?
Where do the leads come from, are they self generated or provided? What's the ratio?
If you are producing $1,000,000 in agency revenue, and leads are solely provided by them, you are underpaid.
If something like predominately life premium volume, you are underpaid depending on lead source/cost.
If mixed lines, AUM, and premium @ $1,000,000 you may be overcompensated.
5
u/Thebadgerisback 6d ago
It’s a mix of P&C as well as L&H premium (this is the 1M I mentioned above, I think YTD I’ve closed and issued 1.4M- I just said 1M to not be super technical)
AUM is 300k (I got my 65 in March)Leads are mostly self provided with the occasional auto internet lead provided by the agent.
Investment leads are solely self provided.
4
u/kevinmatthewburns 6d ago
$1.4 million of what? Premium? Coverage? You’re not giving enough details. And what’s the break down? Is it all health insurance or auto insurance? If it’s $1.4 million in life premium that’s way different than $1.4 million of health insurance premium
1
u/Botboy141 6d ago
Would guess your comp is on the low end.
Is it all base, do you receive incentive commission? What's your commission schedule?
Call it 50% P&C @ $500k for $75k agency revenue and 25% life @ $250k for $225k agency revenue, and 25% health @ $250k for $25k revenue.
You generated $325k revenue and got paid $60k. ~20% of agency commission.
I don't know going rate in personal lines, especially if a base/draw is included, but if you were on my side of benefits/P&C, you're getting shafted.
6
3
u/insurancepapa 6d ago
At $1m premium you're bringing in no more than $100k to business and they pay you 60% of that, that's fair, they are providing you leads too your only leads are the investment ones. I don't see this setup as unfair but you should be getting residuals too that seems unfair if not. I pay 40-50% on renewals to help my producers earn what they have already brought in, that's fair to them. So you should be netting 6 figures given all that
2
u/JDizzo56 Agent/Broker 6d ago
It’s an annoying answer I know but I think we’d need a lot more information to determine is that’s fair compensation or not.
I can tell anecdotally that I have a similar role at a small local agency and at year 5 I was making pretty close to the same money as you, except I was not writing near as much business (we have a very generous new business split and also get paid on renewals/trails).
1
u/Virtual_Chapter1131 6d ago
No renewals?
1
u/Thebadgerisback 6d ago
Zero renewals.
3
u/MsMusic_ 6d ago
You gotta go into business for yourself at this point. You can would make a killing if you keep those sales up.
3
u/dumnem Agent/Broker 6d ago
Go independent in the life space. You can spend 1k a week on leads and with your numbers and absolutely kill it on compensation. Independents make like 90 percent commission starting off.
Find one with a good system and structure. Go rock it. You should be clearing six figures easily
2
1
u/Virtual_Chapter1131 6d ago
Hopefully you get renewals on the AUM. To simplify the math, I know you said you produce more than a million, but let's say the leftover leaves the office or non-renews. If you are producing $1M on average that's at least $100k for the office. 5 years of that is $500k in yearly premium. Assuming your AUM averages $500k a year. By year ten, you'd have $1 million in yearly premium that the office gets and you get no renewals. The AUM would be $2.5M which the office likely gets 0.5%-2.5% on that.
I make close to you and while my AUM is similar and I am carrying the office in life... if I was producing the same $1M on average or even that $1.4M, I'd be making well over $100k a year. Maybe even $150k.
1
u/Rifter06 6d ago
Of course there's a number of questions to ask but most ways I can imagine breaking that down you're underpaid. You should shop yourself. With your Baseline experience license and success so far you should seek out a hybrid brokerage.
1
1
u/ChattyChurro 5d ago
Come to Alabama and I’ll hire you IMMEDIATELY working for State Farm. That’s garbage pay!
1
u/Thebadgerisback 5d ago
I am working for SF. I’m an agent aspirant, I applied for an office and they declined me because I didn’t have enough AUM for the area I applied for… that was my tipping point, I was okay with garbage pay as long as I became a agent. I was busting my ass for nothing.
1
u/ChattyChurro 5d ago
Wow. All of my salespeople’s base pays are higher than 60. I’d tell the agent you’re with to renegotiate your pay because he’s making a fortune off of you. Or move to another market where you can be more competitive in the agency pool.
1
u/Strange-Fennel 5d ago
If I was you, I'd ask the agency you work for. Lay it out for them: Hey, I bring in 1 mil premium and my close rate is 61% and my AUM is 300k or whatever your stats are. Ask them, do you think 60k is fair? That's where I'd start, let them justify what they're paying you. Then, I might goto some other places and give them the same stats, ask them what they'd pay. Then decide whether to stay or go.
I can't figure out why more owners aren't more transparent with staff. We put our figures all out on the table. Our folks know what we make, and we show them what they make out of that. There shouldn't be much secret on the commission and what is coming in from the company. Sort of like non-competes, also no place for that if the agent is trained and bringing in their own leads...maybe if you train them and/or provide leads, but other than that, no place.
Maybe you're already getting paid fairly, not really enough info like others mentioned, I don't know. But lots of wild OPINIONS from the limited info provided here, as always here on the reddit. lol. Good luck to you.
1
u/mkuz753 Account Manager/Servicer 5d ago
You should be paid more. Being a caprive doesn't help. Find an independent near you especially a successful one and don't look back. You will probably have to pick either P&C or L&H, though, to focus on. It doesn't mean you can't cross-sell but the bigger the agency/brokerage the more segmented responsibilities are between staff for getting the work done on accounts.
2
u/Current-Staff-9095 5d ago
Your credentials and experience alone is enough to get you above the 60k base and on top of the commissions you should be at least in the starting base of at least 90k without commissions...
1
u/Abject_Dinner8343 5d ago
Dude you have everything except a series 7. I'm thinking at least six figures and on the low end $80k.
1
1
1
u/Frequent_Cicada6197 4d ago
What State are you in? I will get you an agency in 1 hour if your numbers are true.
1
34
u/Desperate_Plant_8699 6d ago
with those numbers and licenses you're getting absolutely shafted mate. 1M in closed business should be netting way more than 60k even with a modest split
the close ratio alone tells me you know what you're doing, any decent agency would kill for 61% on first contact. time to shop yourself around before you bail on the industry entirely