P&C Licensed Agent with 5.5 Years Experience - Salary+ Commission Question

[mvinsurance]

Hello everyone, I am new here. I am in MA and was licensed in 2010 /P&C/.
I started at an independent agency who got me licensed.

I was hired at an hourly salary. Later I requested some commission from my boss when I started writing more HO policies. So I make under 20$ an hour and 12% out of the commission the agency makes on those. It is really not much commission, even at 2-3000$ policies I am lucky if I get $40 each. Is this a norm? Can anyone help me with pointers what a good compensation should include for someone my experience?
Also, I am still not getting commission on renewal policies. Very frustrating.

I am very driven, sales oriented, and want to make a better living but with amount it is not very doable.
Now I am considering interviewing elsewhere and not sure what other agencies pay to agents who are employees.
Any ideas, opinions are welcome!

 

[Insurance Protection]

What you have is good as an employee. (Hourly wage + Commision)

If you feel you need to go a different direction, ask the owner to treat you as an independant agent and pay you commision only which constitutes to 50% of paid commision with no base pay. Your duties will include finding prospects to write.

Good Luck!

 

[pcbinsurance]

A few questions I have are: Does agency provide you leads? Do they provide you office space and systems/equipment? Do they pay your E&O?
Many other questions here but overall, I think you're doing fine but you'll never get rich doing it.
Do you have the funds to buy a book of business?
Since you're producing well, have you gone in to "renegotiate"?? If they value you, they will raise your pay.
Hopefully they would pay you higher commissions and renewals on all business you write from your own prospecting efforts.

 

[Josh]

IT looks like you have a base of about $40k/year plus you're getting commissions on top of that. Yes, you might be able to get a better deal if you renegotiate, but I would have low expectations of change. Most P&C shops run on fairly narrow margins and the agency owner is usually content to break even the first year if it means they can get the renewals.

You're not in a position where you probably will ever make the money you think you should be making and moving to another P&C shop (sounds like you're doing personal lines) isn't going to make you in any better of a situation. If you had the ability to add commercial to your portfolio and/or really started finding big groups to knock out then you might be able to change your current outlook, but finding another agency that's going to pay you better probably isn't going to happen; at least not in any appreciable amount.

Have you explored doing commercial? Considered selling life insurance? How much of your own prospecting do you currently do?

 

[indienoise]

You're making a salary that high 5 years in?

Sure you won't be making a fortune but doesn't sound like they're doing you wrong.

 

[biaomaha]

If you want to potentially make more and write your own rules whether to pay or time maybe it's time to look into owning your own shop

 

[mvinsurance]

Yes, the office provide office space, computer etc. So essentially I am an employee.
The agency owner advertises in the paper and sends out some fliers to new property owners here and there and that is enough to draw clients in.

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I have both P & C license and been writing new business in both lines.
I only get commission after homeowners though. Maybe that is something I need to bring up with the owner so he starts giving me commission on all new policies.
I am considering getting my L & H this spring/ summer as well to maximize my earning potential in the field.

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If you want to potentially make more and write your own rules whether to pay or time maybe it's time to look into owning your own shop

I definitely thought about this before.

 

[indienoise]

Well, are you willing to take the risk? Sounds like the business pretty much comes to you, so why should he pay you large commissions?

I'm not an agency principal, I am an independent contractor who provides his own leads, his own office and equipment, etc. So yes, I receive the lion's share of commissions I produce. Your situation is different, but maybe the agent you work for would let you go IC. Or you could open your own shop. Both would involve risk on your part.