I am new to the industry and starting with a small P/C firm in California as a producer. I will sell commercial and personal lines. I have a network of realtors and plan to sell multi-unit policies.
If I have a successful track record of sales success for over 10 years(average of $150,000 - $200,000 per year) and have sold some very difficult and "complex" products, how much can one earn in years 1,2,3?
I am interested in average, middle, and super star producer numbers.
Thanks
Jiim Mandas
How much $ can you make?
Moderators: Josh, independent guy
If your working in a "small PC firm", then the concern that I would have is their market availability. Insurance coverage for multi-unit (i.e. habitational) policies is relatively straightforward and not considered complex.
Complex accounts are the larger (usually publicly traded companies) that require multiple layers of coverage (property, liability, D&O, etc).
Is the "$150,000 - $200,000 per year" you refer to PREMIUM or REVENUE? If it's premium, then that isn't much. If you assume the average commission is 15%, then the gross commission on that $150,000 is $22,500 - not much.
To be successful, you need to understand what the client's needs are as far as insurance coverage and have good relationships with the carriers you're agency is appointed with.
Complex accounts are the larger (usually publicly traded companies) that require multiple layers of coverage (property, liability, D&O, etc).
Is the "$150,000 - $200,000 per year" you refer to PREMIUM or REVENUE? If it's premium, then that isn't much. If you assume the average commission is 15%, then the gross commission on that $150,000 is $22,500 - not much.
To be successful, you need to understand what the client's needs are as far as insurance coverage and have good relationships with the carriers you're agency is appointed with.
Yes - it is possible. What you and the agency you work for have to be able to bring to the table is what is sometimes called value-added service. Beyond having the cheapest markets (hint: cheap = Yugo), is your agency able to offer other services such as assistance with the insured's safety program, risk assessment and risk management, claims assistance, etc (all of these an agency can charge a fee for if they can justify the service).
Top producers can make more than that. In my view, a "top producer" not only brings in the business, but is also hands on during the year - making sure that their clients not only have the proper coverage at renewal, but also providing assistance where needed. Some producers place the business, and the insured's don't hear from them for another year until it's renewal time.
Top producers can make more than that. In my view, a "top producer" not only brings in the business, but is also hands on during the year - making sure that their clients not only have the proper coverage at renewal, but also providing assistance where needed. Some producers place the business, and the insured's don't hear from them for another year until it's renewal time.
$$
jmandas, it is possible to make that kind of money, maybe even more.
I know a producer who has a $1mm plus book in one industry alone (mostly medium sized accounts), well over $2mm in total volume. Commissions on this are probably $275k+ & out of that he gets a majority percentage. Also believe that he splits any contingencies.
Note, however, that this guy has been at it for over 15 years, is an excellent networker, is regarded as an expert & is in a major metro area. He's also a jerk which might be a positive or a negative factor in all this.
I don't see $150k income as very possible in the first few years of an insurance sales career unless you can write some really major accounts, usually not possible as most large insureds only want to deal with someone with significant experience.
If you want big $$ faster than that try large account individual life sales. If you can do it the sky is the limit.
Ya never know if you don't try...if you don't try fer sure you won't make it.
I know a producer who has a $1mm plus book in one industry alone (mostly medium sized accounts), well over $2mm in total volume. Commissions on this are probably $275k+ & out of that he gets a majority percentage. Also believe that he splits any contingencies.
Note, however, that this guy has been at it for over 15 years, is an excellent networker, is regarded as an expert & is in a major metro area. He's also a jerk which might be a positive or a negative factor in all this.
I don't see $150k income as very possible in the first few years of an insurance sales career unless you can write some really major accounts, usually not possible as most large insureds only want to deal with someone with significant experience.
If you want big $$ faster than that try large account individual life sales. If you can do it the sky is the limit.
Ya never know if you don't try...if you don't try fer sure you won't make it.
If you are working for a small P/C agency the likelyhood of selling major accounts is small to none. You may fall into an account but most of the time it takes quite awile to develope a relationship with the client and several years quotes with different carriers to be able to write one of these.
Your split on the commission is probably about 35%. That means that if the commission is 15% your share is 5.25%. In order to make 200K you are going to have to write almost $4,000,000 of premium. That is a pretty tall order for someone new to the business. Not impossible but not very likely. It will take some time to make your book grow. Don't forget life insurance in your mix, or start your own agency with SIAA, The Leavitt group or some other association.
Good luck. It's a great business but can be tough sometime. Remember your family needs along the way to your success.
Your split on the commission is probably about 35%. That means that if the commission is 15% your share is 5.25%. In order to make 200K you are going to have to write almost $4,000,000 of premium. That is a pretty tall order for someone new to the business. Not impossible but not very likely. It will take some time to make your book grow. Don't forget life insurance in your mix, or start your own agency with SIAA, The Leavitt group or some other association.
Good luck. It's a great business but can be tough sometime. Remember your family needs along the way to your success.
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InsAgentSF
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I would add a couple of things: If you are a good salesman then you will succeed. Your level of success is completely up to you. It's very much possible to make over 150K here. If you are new to insurance and NOT new to sales, i would recommend the following:
1) Be curious. Got insurance seminars, always be looking for different trends in the industry and learn new stuff
2) Network with the underwriters. Get them to love you and they will do wonders for you. If you have clean work ethics, on time and your applications are clean, meaning you always have neccessary information in your acord and supllmental submissions you will get quotes on time. I do
3) Whn you pick ageny, big or small, check what markets they have access to i.e standard vs non-standard. Pretty much ANY company has most of the non-standard markets as they are appointing anyone. Standard markets are they key. Especially if the compan can write DRECTLY with Hartford, Safeco, Oregon Mutual, St.Paul and others. You have to be able to be competitive. I know people say sell service bit not price but eventually it will come down to price anyway. Service is somethig that is GIVEN.
I own a company in East Bay. email me edmundich@hotmail.com if you have further questions
1) Be curious. Got insurance seminars, always be looking for different trends in the industry and learn new stuff
2) Network with the underwriters. Get them to love you and they will do wonders for you. If you have clean work ethics, on time and your applications are clean, meaning you always have neccessary information in your acord and supllmental submissions you will get quotes on time. I do
3) Whn you pick ageny, big or small, check what markets they have access to i.e standard vs non-standard. Pretty much ANY company has most of the non-standard markets as they are appointing anyone. Standard markets are they key. Especially if the compan can write DRECTLY with Hartford, Safeco, Oregon Mutual, St.Paul and others. You have to be able to be competitive. I know people say sell service bit not price but eventually it will come down to price anyway. Service is somethig that is GIVEN.
I own a company in East Bay. email me edmundich@hotmail.com if you have further questions
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92builder
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If I may add my two cents, what you have to look at the most as far as personal issues, is how you react to the word "no". Myself, it doesn't bother me b/c I see "no" as "not now, but ask me again later". If you think that "no" means "please get away from me", then you need to fix that real quick, compadre.
You need to be out in the public as an insurance salesman. Don't sit in your office and wait for the phone to ring. If this agency is going to provide you with business cards, I feel your first task should be to see how fast you can give them away. You need to blast your area with your name. Now, there are some schools of thought on this board about advertising and that is up to you on how you go about it, but what you need to do now is show your face, shake some hands, and let ppl know what you do so they can start to associate you with insurance.
I've said that to say this. If you want to make that type of serious money quickly, you're going to have to go after the big accounts. However, remember that every other new agent will go after the same big accounts. Sales is all about timing. In my agency, we believe that it's better to have a hundred small accounts worth 1M than it is to have a few accts worth 1M. You need to cover yourself, b/c it could possibly devastate you and your agency if one of your few large accts leaves. Believe me, it will happen, too. However, if you have a ton of smaller accts making up your book of business, you're not so susceptible to disaster if you lose a couple. The big boys are nice to have, but don't hang your hat on one or two. They don't need you as much as you need them.
You need to be out in the public as an insurance salesman. Don't sit in your office and wait for the phone to ring. If this agency is going to provide you with business cards, I feel your first task should be to see how fast you can give them away. You need to blast your area with your name. Now, there are some schools of thought on this board about advertising and that is up to you on how you go about it, but what you need to do now is show your face, shake some hands, and let ppl know what you do so they can start to associate you with insurance.
I've said that to say this. If you want to make that type of serious money quickly, you're going to have to go after the big accounts. However, remember that every other new agent will go after the same big accounts. Sales is all about timing. In my agency, we believe that it's better to have a hundred small accounts worth 1M than it is to have a few accts worth 1M. You need to cover yourself, b/c it could possibly devastate you and your agency if one of your few large accts leaves. Believe me, it will happen, too. However, if you have a ton of smaller accts making up your book of business, you're not so susceptible to disaster if you lose a couple. The big boys are nice to have, but don't hang your hat on one or two. They don't need you as much as you need them.
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InsAgentSF
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