Agents Making Little to No Money... How / Why?

[djs]

With life insurance, it's like 100-120% fyc, then zippo (term anyway). And of course we know what's happened with term premiums...

Health will go down from 20-25% fyc to 5-7% on renewal.

P&C is like a level 10-15%?

Some P&C is as low as 8% (mostly commercial stuff), some is as high as 20%, such as some homeowners, but in general, you are correct.

To look at this though, you also have to look at premiums and average volume. A P&C agent may have 1200 policies per person in the office. A health agent usually around 200-300. I have no idea for life only agents.

Dan

 

[hdlabs]

Great infor on this thread--considering new agent myself and was wondering if this was a good deal or not---independent agency with about a 1.3 million book. He will pay me 25k for 2 years plus 30% new business and renewal commissions....after 2 years we would talk about 40% nb and renewals with no salary....problem with me is no benefits and wife is in nursing school right now.....
He is 55 and I'm 31----Potential to buy business from him in 7-10 years.....What would you guys do?