Pay Scale Questions.

[jwnewell001]

I have been in insurance for about 5 years. I started out with medicare and slowly made my way over to p&c. I knew what I made in medicare was regulated so I never really had to negotiate pay. I am now working for a broker as and agent and feel like he is using my lack of knowledge on this side as a way to under pay me. I currently have a 1500 month salary and 20% of whatever commission I earn for him. So if he makes 18% he gives me 20% of that. Will someone let me know what the industry standards are. I'm at the point of just looking for a new job but I like that office and would like to just go to him and ask for more % but I'm just not sure what's standard

 

[Chris@ACAExpress]

If I were in your position(still learning under someone) I'd be ecstatic to get a $1500 a month base PLUS commission. Sounds like a good deal to me if he is taking risk for all overhead/costs.

 

[jwnewell001]

I guess more of the question is are the % ok. I on avg write 25 to 30 per month in premium. I know how to sell and market just didn't know much about the business. For the 2150 or so I earn each month I feel like I'm being shafted. I am also 1099 and pay all my own taxes while he wants me here 8 to 5 everyday. I could be wrong but I feel as if I'm getting hosed and taken advantage of. I also have to pay my own e and o and marketing. After taxes I live in poverty. Something doesn't seem right.

 

[TwiLight]

I guess more of the question is are the % ok. I on avg write 25 to 30 per month in premium. I know how to sell and market just didn't know much about the business. For the 2150 or so I earn each month I feel like I'm being shafted. I am also 1099 and pay all my own taxes while he wants me here 8 to 5 everyday. I could be wrong but I feel as if I'm getting hosed and taken advantage of. I also have to pay my own e and o and marketing. After taxes I live in poverty. Something doesn't seem right.

I am assuming you are speaking of Personal Lines and not Commercial.

25-30 apps is average production for an established agency producer. The fact that you are getting commission is great. Most Reps in established agencies for personal lines are paid about $30-35k + a per policy spiff of $5-10/app.

Is your commission for renewal also or just first term? If it is, you have a great deal. Don't expect much better in personal lines. The money is in commercial insurance. Most experienced producers make 40/60 if the are supported by underwriting and Staff and own their books of business.

Also, if your agency controls your schedule than a 1099 is illegal and you should be paid via W2. I have 23 years experience in the owning a payroll company and have seen many insurance agencies get pounded by the IRS for back taxes not paid as the employer.

 

[Chris@ACAExpress]

Also, if your agency controls your schedule than a 1099 is illegal and you should be paid via W2. I have 23 years experience in the owning a payroll company and have seen many insurance agencies get pounded by the IRS for back taxes not paid as the employer.

This bit is dead on. When told that you MUST work particular hours it's required that you be a W2 employee. Other than that if you want to make more you've got to produce more.. that's the beauty of sales.

 

[jwnewell001]

So maybe I've got it better than I think. I do get renewals at 20%. I've been told by other people who work for other agency's that they make 40% with renewals. Didn't know if they are bs or not. As for the 1099 I wish I could come and go as I please but the office manager is on my case all day. Wanting to know why I'm late or leaving at 445. Any ideas on how to address this?