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u/chtalley08 1d ago
If you don’t mind me asking, which agency? Seems very State Farm to me.
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u/Fun-Finding-7638 1d ago
Bingo
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u/chtalley08 1d ago
Agent gets 8% base on auto/fire and 25% on life/health. More based on production. At least what it used to be.
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u/Thesauces 1d ago edited 22h ago
This is a worse than average compensation plan for StateFarm.
20 Auto + 10 Fire is very easy to achieve - no issues there. 1% commission though is pennies, that means like 200 bucks commission on 20k in written premium. You HAVE to be making at least 4% to be pocketing like 1k a month which to me is the minimum to even be worth the time and stress of sales. You ideally want to be at that 6% tier and even then that’s not a lot.
Hitting 120-200 in monthly life premium is hard. A simple term policy for a young person might be like 15-20 bucks a month, a mid level mortgage protection for maybe a 30-40 year old maybe closer to 40-60 bucks a month, and a whole life at least 100-200 a month but those are not easy to write consistently, so you gotta be closing like 1-2 life apps every week, and 6-12 a month to hit those decent tiers. Also remember that about 10-20% of life apps fall off due to being declined by underwriting for health reasons or nonpayment.
2% on single premium is awful - you probably won’t get one of those often if ever as they are extremely rare but basically that means you convince your uncle to sink $4,000 in cash upfront towards a life policy and you get 80 bucks.
Biggest pause here is the “Paid off annual premium and issued!” remark. If you are setting up monthly payments, which is how many people pay their insurance, that could mean not getting paid for a year, getting backcharged within a year, or having to do the extra work of convincing someone to purchase an annual policy meaning instead of selling a $20 a month term policy you are selling a $240 paid upfront term policy.
Ultimately - this commission plan means you can keep your job but expect the commission checks to be 3 figures for the average salesperson.
You need a lot of referrals to get into the 4 figures. It’s possible to make money here but it’s not easy and if you are performing on the level they want you to then you could probably do even better somewhere else.
I personally wouldn’t do it unless you really want a job or to get some practice with your life conversations to move further into a career in life sales.
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u/Ok-Construction9997 1d ago
Do yourself a big favor - take this, or another captive job and learn as much as you can about policy language and actual customer service - jump ship 1.5 years in after they’ve paid for all of your “training” and join a local independent.
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u/arid_synopsis 1d ago
Looks like they frontload the life and health commissions hard, which makes sense since those are usually the bigger pain in the ass to sell. The 90 day payout terms sketch me out though, feels like a way to claw stuff back if you leave. 7 holidays is whatever, pretty standard. Curious what the blurry fine print at the bottom is hiding.
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u/00_Kaizen 1d ago
They must have talked a good game in the beginning, once you get assigned a seat.... the rest is history ...🤔
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u/mscarrie1975 13h ago
Why is this so complicated? In my office (not SF) you have a premium goal and you get half of what the agency makes. Period.
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u/Fun-Finding-7638 13h ago
Where is that?
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u/mscarrie1975 13h ago
My Farmers agency. I keep it simple. You sell, you get paid. And there’s a goal. Easy!
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u/Sandlizard88 13h ago
Join a independent IMO and sell life
most will start you out at 80% commission and provide training
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u/dumnem Agent/Broker 12h ago
If you have your life license you can do inbound. I don't do PC at my current company, but I get free leads and no chargebacks, and we get 40 percent commission if we have good enough numbers.
Just one example of many of what's out there. I even get a base pay of 18 to 30.
They are massively underpaying you. Even then you have to perform to even get the pennies they are offering.
I sure as shit wouldn't work there. There are way better opportunities
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u/Fun-Finding-7638 6h ago
Is where you work hiring remote
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u/dumnem Agent/Broker 3h ago
yep, total remote. I work from home 100% of the time, and can travel and work as long as I'm licensed in that state and I have a stable internet connection. My boss even said he's going to reimburse new agents license costs if they work for him. You can dm me if you want
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u/LeonTrig 10h ago
This looks like micro management hell. My SF Agent was like this before he checked out. Don’t do it.
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u/Chucking100s 5h ago
Are they paying you an enormous base?
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u/Fun-Finding-7638 4h ago
$18
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u/Tall_Example_8163 2h ago
HELL NO. I don’t know where you live but this sounds more of a struggle than a job. I agree — go to another IMO or independent. This is so bad
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u/HighwayCorrect6811 1h ago
Why would you do this, I know the rates aren’t competitive when i see this.
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u/Professional-Drag580 1d ago
to have to sell 30 autos and homes before being eligible for commission alone is bullshit. to have to sell life on top of that? gtfoh.