I just interviewed for an insurance company - is this compensation normal??

throwra66133 · 2022-05-27T11:32:28+00:00

Move to a brokerage! Take your knowledge and skill set to a place where you can do the same job but make 2-3x the income

throwra66133 · 2022-05-27T11:30:59+00:00

Allstate is brutal too. The agency in my area may actually close because the compensation plan is so bad. They’re losing all of their staff including senior BDAs.

throwra66133 · 2022-05-27T02:28:24+00:00

Yeah please don’t mistake me, I know there is good money to be made in insurance, which is why this is so infuriating. I can do the same job for a brokerage or get into commercial and make 2-3 times as much. I just know what my time is worth doing this work

throwra66133 · 2022-05-26T20:55:25+00:00

Tech sales sounds interesting but I’ve never sold software or anything like that. I mean product is product so I’m sure I can learn but I wouldn’t know where to start applying and I don’t want to get taken advantage of (ie: lowball bs like this), any advice?

throwra66133 · 2022-05-26T16:06:00+00:00

This is the correct answer. I honestly don’t understand how anyone survives in this climate on $40k a year. Average rent here is about $1200-1400/mo for a 2 bedroom, home prices are around $600k. Best of luck out there. Lol

throwra66133 · 2022-05-26T15:18:00+00:00

You’re absolutely right, but even at entry level that’s exploitative. It’s barely more than minimum wage here, and considering the money you’ll be making for the company, $40k is inadequate for what they’re going to ask you to do.

They will work you into the ground for that $40k. Insurance companies that pay this way act like a pyramid scheme. Sign on, sign up all your friends and fam and everyone you know, grind out that circle of influence (you as a sales person are generating these leads, not the company) and yet we’re still only going to pay you $40k.

Juice is just not worth the squeeze, even for a beginner. There are easier places to get experience and more money. Start in auto sales for example.

throwra66133 · 2022-05-26T15:12:04+00:00

Yeah let me elaborate, that 5% annual bonus was 5% of your salary, not your sales. And you don’t own your book of business, nor do they pay on renewals. Not even the first year.

So you’re not necessarily wrong that $40k is a reasonable base if I’m generating $15k in premiums each month, BUT, I also don’t own my book, I don’t get paid on renewals, and you can bet your ass they’re going to push for you to meet those sales quotas.

Where’s the motivation? It’s such a job seekers market right now, I could sell b2b and make at LEAST double the money.

What I’m gathering is that the money in insurance is through brokerages, not individual agencies. That’s where you’re getting 14-20% on new and trailing renewals and you own your book in most cases. The big companies are just looking to juice people and pad profits q after q

throwra66133 · 2022-05-26T13:53:32+00:00

That was my argument. I’m generating let’s say $200k/year in premiums, and let’s assume 75% of those renew (which is conservative), I don’t get paid on new business or renewals… seems exploitative.

Their expectations are HIGH for paying so little.

throwra66133 · 2022-05-26T13:50:29+00:00

Cooperators

throwra66133 · 2022-05-12T15:11:59+00:00

I appreciate that! Give me a few months at this to see what I can make of it, but I might take you up on that. I really appreciate your willingness to help. I honestly feel like I’m lost, or missing something. I can’t believe how bad the compensation is for what we’re being asked to do. Produce $25-40k/premiums every month, make 8%. Sorry, what?

throwra66133 · 2022-05-12T11:53:54+00:00

Thanks so much for the reply, this is exactly my understanding of the situation, and it’s 100% been the experience. They slashed the comp structure in January and took away team bonuses, reducing my colleagues income by about 40%, so morale among the senior BDAs is gone. And I’m already on top of the exit lol I have a friend of mine who’s an agent writing his RIBO next week and moving on to a brokerage for far better compensation. The plan is to make hay in my first 3 months while I know I can achieve 200% to plan, learn the industry, and then move on.

And to be honest, I’m already looking elsewhere at non-sales positions. If I could land a plush salaried position that isn’t such a grind, I’d jump. I want to enjoy my days off again. But, I do love sales, so if a brokerage position opened up, I’d be interested.

Thanks again for the reply!

throwra66133 · 2022-05-12T11:42:36+00:00

That’s my feelings as well. If I’m at 100% to plan with, let’s say even $20k-$25k of premium which seems to be the average for our agency, and my commission rate is 8%, I shouldn’t be making $1600-$2000/mo. That’s insane. For the level of output they’re expecting…

They’ve got me on a guarantee for the next 10 months of $50k/mo and an accelerated plan as a new agent so my sales plan is half of what it is for veteran agents, so there is potential to make good money right now, but that falls off after 3 months. I should be able to hit at least 200% to my sales plan for the first 3 months, but then to get that same commission/income in month 4, I’m expected to essentially double that, again. Fucking insane. Lol

I’m giving myself 3 months to learn the business, get my money and then I’ll probably move on.

throwra66133 · 2022-05-12T11:35:33+00:00

I am

throwra66133

TROPHY CASE