by sschwenck » Wed Sep 23, 2009 06:18 pm
Farmer's insurance has contacted me to be an agent. As the employee of an agency, how much does an insurance agent make and is commission involved in the figure? What is a captive agent? Are agents that work for companies, such as Farmers, considered a "captive" agency?
Posted: Wed Sep 23, 2009 10:56 pm Post Subject:
A captive agency is owned by the insurance company, you are an employee of the insurance company. Versus an indepenent agent of the company. I am not sure about if Farmers offers franchise agencies like State Farm and others. But I guess the farmers agent salary package is good. I have friends who are agents and they seem to be living comfortably. It is a salary plus bonus career. You earn residual income for each policy you keep alive.
Posted: Thu Feb 03, 2011 05:58 pm Post Subject: captive vs independent
I don not recommend working as a captive agent. A captive or exclusive agent is bound by contract to ONLY represent that companies products. The company actually owns your book of business, so when you retire or are ready to leave, you leave with nothing. And all the companies have you sign a non-compte for a minimum of 2 yrs. It takes years to build up your book to where you can actually take home a decent salary, and all for nothing (except the co.) They term you as an independent contract for tax reasons, which are in their favor, but in all actuality you are an employee and they can term your contract at any time. So, no, you do not own your own business. Commissions vary by product ie: auto 10-12%, home 10%, etc.
Posted: Thu Feb 03, 2011 09:07 pm Post Subject:
do not listen to negative people who think captive agents are no good. If you want to make a carrer out of Farmers insurance than go for it!
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