by blanchard93 » Sat Jul 11, 2009 05:53 pm
I'm a licensed P&C agent with 8 years experience in customer service with 6 months sales experience. I've been offered a sales position at an independent agency in my small town. This agency is really not on the map in town as far as personal sales goes even though they have been in business since 1891. They don't advertise on the building or in the media at all. They currently do not have any personal market sales people working for them and they have not had any for quite a few years. The manager just happen to find my resume online as he was looking for a CSR. After I declined the CSR position, he offered me part time sales postition working from home with a $250 base pay plus 100% of the agency commissions for the new business but no residual commissions and no rights to any future commissions on rewrite's to other carriers. In my opinion, this was not a good offer. It builds the future of the Agency but not my future as an agent. I'm involved with many social and community organizations in town and I have 4 children that are also very involved. I have a huge opportunity to sell based on that alone. Since I don't have any experience with how commissions work. Is my opinion that this was a poor offer a valid one? Should I expect to be paid residual commissions? Do you have any advise for me as far as making an offer back to them?
Posted: Sat Jul 11, 2009 08:47 pm Post Subject:
If I were you, and I had that strong of a potential customer base...I would look at being an independent agent myself. However, that may not be for you. As far as this offer goes, is the 250 per week? or per month? The upfront commissions sound ok, but really you're building up a strong residual base for someone else.
I may negotiate for at least a little of the residual...
Posted: Sun Jul 12, 2009 12:16 am Post Subject:
Thank you for your feed back. The $250 is a monthly base income. I agree completely about the residual. I already advised them that I can't see any future in building a book of business for them to make all the future profit. Do you know what a good split of commission would be? I can't seem to find that anywhere online. I think the agency knows that I'm not familiar with how the pay structure works. I would not be interested in an agency of my own at this point. It is alot of work and my children are still young.
Posted: Sun Jul 12, 2009 02:12 am Post Subject:
I assume the $250 a month is basically to reimburse you for your expenses? It seems a little low, as most agents that work p & c typically earn some type of salary if they are not building their own business.
My feeling would be that maybe you could offer to take 90% of the upfront commission in return for 20% of the residuals. I suppose you could go to 10%, but I wouldn't. After all, you're building their business and they're still yielding 80% of the renewals!
Posted: Tue Jul 14, 2009 07:25 am Post Subject:
Hello Blanchard93, is this agency a P&C agency too?
When you have the license and at the same time a potential base of customers, why exactly aren't you looking at scopes of becoming an independent agent?
Posted: Tue Jul 14, 2009 11:57 am Post Subject:
Hi blanchard93..
I'm involved with many social and community organizations in town and I have 4 children that are also very involved.
I do empathize your not trying to work as an independent agent. You do need to avoid risks now that your children are so young.
But, did they tell you that they'd have offered a better package if you had more insurance sales experience?
This agency is really not on the map in town as far as personal sales goes even though they have been in business since 1891.
It's not always about negotiating salary packages...sometimes you may need to think whether you'd like to join an organization that is not so prominent..
Steven
Posted: Tue Jul 14, 2009 04:46 pm Post Subject:
I'm not that experienced on the P & C side, but I think you could probably go independent and start small. Purchase a few leads and close them, and do it small. After all, it sounds like the income from this agency would be pretty small. The only risk is not getting a $250 a month guarantee!
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