First Year Producer Salary?

[srdrgz11]

I am currently a new producer at Allstate. I just completed my first month. So far so good. I've learned a lot and am enjoying it. I have worked in sales before but this is the first ive sold insurance.

I am currently earning a salary of $1700 per month, for the first 5 month, while i'm in training. After the initial 5 months, my boss and I are going to negotiate a salary and commission.

In my first week of sales, third week overall, I sold 4 auto policies. My boss says I should expect to sell 20+ policies a month, at least.

I definitely want / need a base salary but I don't know how much to ask for.

What is a estimated salary for a first year producer?

How much can a first year producer expect to make, including commission?

I know there are a lot of variables in regards to these questions, but i am just looking for some decent estimations.

Thanks,

Newbie

 

[xrac]

Your don't say where your are located at but based upon your training salary I would expect that your total compensation would be in the $25,000-35,000 range for the first year.

 

[MrProducer]

OUCH!! Maybe she should try the independent agent route instead. If she can sell, she should clear 60-100K first year in my opinion.

 

[Chazm]

^I'd be willing to bet he would not make 60-100k first year

 

[todd02]

First year independent you make nearly NOTHING unless you have no over head....

I'm a captured agent and I cleared only 20k my first year.... 80k second... six digits now.

I pay my producer 2k month base, 50% commission after he makes over 2k in commision for the agency to pay off the base. He makes about 3-4k a month

 

[xrac]

^I'd be willing to bet he would not make 60-100k first year

Me too!!!!!!!

 

[Mark]

Look, the real money is selling over the phone, in your boxers, at home. Just work a couple of hours a day, whenever you want to and make tons of money.

Others agents just dont want to tell you our secret.

Come on guys.

 

[MrProducer]

Let's look at what it takes to make $60K in a year..... (we will assume this person actually gets out of their underwear and sells.....no, not naked)....

If you sell only final expense.....

5 policies per month, assuming average of $100 monthly premium each ($1,200 annual) = $72,000 total annual premium for the year.

Assuming your commish rate is 100% (i.e. Foresters): Before chargebacks, you made $72,000 that year

Let's use 18% for the chargeback ratio...... net is $60,000 (minus taxes, of course).

So the question is....can you sell $6,000 annual premium (on average) each month? Keep in mind, some FE policies are $3K-5K annually.

 

[medsuptage]

Let's look at what it takes to make $60K in a year..... (we will assume this person actually gets out of their underwear and sells.....no, not naked)....

If you sell only final expense.....

5 policies per month, assuming average of $100 monthly premium each ($1,200 annual) = $72,000 total annual premium for the year.

Assuming your commish rate is 100% (i.e. Foresters): Before chargebacks, you made $72,000 that year

Let's use 18% for the chargeback ratio...... net is $60,000 (minus taxes, of course).

So the question is....can you sell $6,000 annual premium (on average) each month? Keep in mind, some FE policies are $3K-5K annually.

That's assuming zero lead cost/operating cost. Also that's quite the charge back ratio.

And your average policy premium seems quite high.

 

[Newby]

That's assuming zero lead cost/operating cost. Also that's quite the charge back ratio.

And your average policy premium seems quite high.

Yep, and commission rate sounds very low for Foresters. Maybe he thinks he's got a sucker on the line.