I see this as very informative, and look forward to getting alot of info from this web forums.
Newbie
Moderators: Josh, independent guy
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Broker4U
- Insurance Journal Fan
- Posts: 4
- Joined: Thu Mar 08, 2007 9:05 pm
- Location: Oakley, Ca.
- Contact:
Newbie
Just sign'd up, and looking forward to alot of info, and help. I'm all new to the insurance field, with 27 yrs experience in the repossession field. Newly licensed P&C in California. I'd like to sell repo insurance, along with alot of commerical, and inland marine. Guess you could say I'm going for the big stuff. Currently I'm working for a broker, but have to get all my own leads.
I see this as very informative, and look forward to getting alot of info from this web forums.
I see this as very informative, and look forward to getting alot of info from this web forums.
Broker4U,
To be successful in business you first need to like what you do. The first two posters obviously don't like what they do. I on the contrary love the insurance business. I have invested a lot in this business and it is pay off. I plan on staying with it for awhile.
Good Luck!
To be successful in business you first need to like what you do. The first two posters obviously don't like what they do. I on the contrary love the insurance business. I have invested a lot in this business and it is pay off. I plan on staying with it for awhile.
Good Luck!
Always Be Closing!
Response to pita3333 - I am relaxed - I'm working on transitioning out of insurance to a career where my skills and talents are appreciated and utilized.
Response toJInman - I don't "hate" insurance. For me, it's become a dead end. Mostly because, since my skills lie as more as "back office" or technical support and not as a producer, very few agencies appreciate and recognize the staff that keeps the producers out of hot water.
Response to Broker4U - don't pigeon-hole yourself into one area (repo insurance). If you're planning on dealing with commercial insurance needs, go beyond just selling "price". Work with an independent agency that has a broad spectrum of insurance carriers and understand what their specialties are. Learn how to put together, and sell, an entire insurance program (not just a couple of lines). Any agent can sell a cheap price, but a good producer can help put together a good insurance and risk management program that addresses the clients needs.
Response toJInman - I don't "hate" insurance. For me, it's become a dead end. Mostly because, since my skills lie as more as "back office" or technical support and not as a producer, very few agencies appreciate and recognize the staff that keeps the producers out of hot water.
Response to Broker4U - don't pigeon-hole yourself into one area (repo insurance). If you're planning on dealing with commercial insurance needs, go beyond just selling "price". Work with an independent agency that has a broad spectrum of insurance carriers and understand what their specialties are. Learn how to put together, and sell, an entire insurance program (not just a couple of lines). Any agent can sell a cheap price, but a good producer can help put together a good insurance and risk management program that addresses the clients needs.
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volstrike3
- Insurance Journal Addict
- Posts: 212
- Joined: Mon May 15, 2006 1:44 pm
- Location: Northern CA
newbie
Newbie,
Do not get discouraged by any of these guys. Being an insurance producer is one of the best jobs in the world if your good at it. Unlimited earning potential and the ability to manage your own time. Starting out is hard but you can hang in there and hit the 5 year mark with a $500,000+ revenue book, you will be very happy with your decision to get into this business.
You will need to broaden your target market a little bit from just repo insurance and not only go after big stuff in the beginning. Most new producers don't have the horsepower to take down huge companies at the start of their career because they don't know what they don't know and they are competing against seasoned pros. You will starve if you only go after big accounts while you are getting established. You don't have to stray too far from your niche but you should look to insure repo companies, towing, body shops, parts suppliers etc. Be well versed in all lines of insurance related to those industries and become part of that industry. Join the associations, go to the trade shows and show your face a lot. Get on the boards of the associations as quickly as possible. It won't happen overnight but you will look up 5-6 years down the road and be very happy with your career.
Do not get discouraged by any of these guys. Being an insurance producer is one of the best jobs in the world if your good at it. Unlimited earning potential and the ability to manage your own time. Starting out is hard but you can hang in there and hit the 5 year mark with a $500,000+ revenue book, you will be very happy with your decision to get into this business.
You will need to broaden your target market a little bit from just repo insurance and not only go after big stuff in the beginning. Most new producers don't have the horsepower to take down huge companies at the start of their career because they don't know what they don't know and they are competing against seasoned pros. You will starve if you only go after big accounts while you are getting established. You don't have to stray too far from your niche but you should look to insure repo companies, towing, body shops, parts suppliers etc. Be well versed in all lines of insurance related to those industries and become part of that industry. Join the associations, go to the trade shows and show your face a lot. Get on the boards of the associations as quickly as possible. It won't happen overnight but you will look up 5-6 years down the road and be very happy with your career.
Newbie,
I don't hate insurance, I work in the industry (hence me getting the email link to this board) but let's examine the start from scratch angle of this business:
You either a) work for a captive type producer and get 10 - 15% commission and a percentage of renewals
OR
b) work for a broker and get a split of 10 - 15% and a percentage of renewals
SO let's say you do like this other poster says and work 5 years and build a $500,000 book of business; here's what you have to look forward to:
Under scenario a) you'll make $75,000 after 5 years of hard work (and yes it is hard work) AND you don't own your book, in fact you'll be lucky if your company gives you any money if you leave or retire.
OR
B) you get a percentage (let's say a generous 75% commission split) and you make $56,250 after 5 years of work and again you don't own your own book.
So, the best you can look forward to is scenario B and at some point in the future you can negotiate with your broker to buy your own book and get a direct writer contract with your company. At least at this point you can look for other soft-in-the-head sales people who are willing to bust their butts and make you some money.
During my sales career I've had:
Companies cut my new business and renewal commissions
Shift an ever increasing percent of processing fees and costs to the producers
Decided I'm not an employee but a contractor and drop health&benefits
Reassign portions of my book to new producers
Decide I'm a contractor but still boss me around like a employee
Decide that lines of business I've written for years does not fit their future 'vision' and cancel existing business.
Like I've said, being a producer in this industry is not worth the effort. Find something more rewarding and lucrative and persue that for 5 years.
I don't hate insurance, I work in the industry (hence me getting the email link to this board) but let's examine the start from scratch angle of this business:
You either a) work for a captive type producer and get 10 - 15% commission and a percentage of renewals
OR
b) work for a broker and get a split of 10 - 15% and a percentage of renewals
SO let's say you do like this other poster says and work 5 years and build a $500,000 book of business; here's what you have to look forward to:
Under scenario a) you'll make $75,000 after 5 years of hard work (and yes it is hard work) AND you don't own your book, in fact you'll be lucky if your company gives you any money if you leave or retire.
OR
B) you get a percentage (let's say a generous 75% commission split) and you make $56,250 after 5 years of work and again you don't own your own book.
So, the best you can look forward to is scenario B and at some point in the future you can negotiate with your broker to buy your own book and get a direct writer contract with your company. At least at this point you can look for other soft-in-the-head sales people who are willing to bust their butts and make you some money.
During my sales career I've had:
Companies cut my new business and renewal commissions
Shift an ever increasing percent of processing fees and costs to the producers
Decided I'm not an employee but a contractor and drop health&benefits
Reassign portions of my book to new producers
Decide I'm a contractor but still boss me around like a employee
Decide that lines of business I've written for years does not fit their future 'vision' and cancel existing business.
Like I've said, being a producer in this industry is not worth the effort. Find something more rewarding and lucrative and persue that for 5 years.
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volstrike3
- Insurance Journal Addict
- Posts: 212
- Joined: Mon May 15, 2006 1:44 pm
- Location: Northern CA
interesting
Are we in the same business?
You have gotten a bum deal. You probably should have looked around.
With a $500k revenue book of business at my agency you would make $150-200K a year plus a 3% (15,000) bonus based off contingent goals plus perks better than or equal to any other business I have seen. You can buy your book and walk if that is what you want to do although most producers choose not to. $150k with a 40 hour work week is a pretty good situation in my opinion. Most of our competitors offer a similar compensation structure. Those that offer a lower split usually have a higher bonus structures or ESOP opportunities.
You have gotten a bum deal. You probably should have looked around.
With a $500k revenue book of business at my agency you would make $150-200K a year plus a 3% (15,000) bonus based off contingent goals plus perks better than or equal to any other business I have seen. You can buy your book and walk if that is what you want to do although most producers choose not to. $150k with a 40 hour work week is a pretty good situation in my opinion. Most of our competitors offer a similar compensation structure. Those that offer a lower split usually have a higher bonus structures or ESOP opportunities.
We must not be in the same business; I've never seen or heard of P&C that pays a 30 - 40% commission and never heard of an agency that doesn't eat a huge chunk of your margin with overhead (office, utilities, employees, supplies..) is this a California thing or was I and all other producers I worked with for years and years just terribly unlucky?
Oh and add screwed out of contingency/profitability/new business bonuses to my list.
Oh and add screwed out of contingency/profitability/new business bonuses to my list.
terminalogy
I think Colonel misstook the term "Revenue" for premiums. Revenue to volstrike3 is actual commissions & contingents... which, depending on the carrier and product is somewhere between 2 million and 5 million in premiums.
In my little marketing area (small town) it would be virtually impossible to do this amount of growth, but in a bigger market area it is entirely possible. You'd have to hump to get there, but even if you get half-way there you'd be making over $100K plus benefits at my agency. Probably most others, too.
This is a great business. My newest personal lines producer earned about $40K last year, his first year, and took five months of afternoons off to coach the local high school swim team. What other business allows opportunities like that!
Broker4U, focusing on a market like you mention is often profitable, but make sure you cover all the bases. these businesses need liability, fire, loss of income, garagekeepers, all sorts of property and casualty coverages. They also need life insurance, disability income plans, health and pensions. If they are successful they will need a good financial planner that has abilities to help them with succession planning and more. Don't settle for just a small piece of the pie, rounding out the account is where the profit is in this business.
Good luck!
Swymmer
In my little marketing area (small town) it would be virtually impossible to do this amount of growth, but in a bigger market area it is entirely possible. You'd have to hump to get there, but even if you get half-way there you'd be making over $100K plus benefits at my agency. Probably most others, too.
This is a great business. My newest personal lines producer earned about $40K last year, his first year, and took five months of afternoons off to coach the local high school swim team. What other business allows opportunities like that!
Broker4U, focusing on a market like you mention is often profitable, but make sure you cover all the bases. these businesses need liability, fire, loss of income, garagekeepers, all sorts of property and casualty coverages. They also need life insurance, disability income plans, health and pensions. If they are successful they will need a good financial planner that has abilities to help them with succession planning and more. Don't settle for just a small piece of the pie, rounding out the account is where the profit is in this business.
Good luck!
Swymmer
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houstonagent
- Insurance Journal Addict
- Posts: 41
- Joined: Mon Nov 06, 2006 3:11 pm
- Location: houston
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volstrike3
- Insurance Journal Addict
- Posts: 212
- Joined: Mon May 15, 2006 1:44 pm
- Location: Northern CA
wlundy
You are correct. I was speaking about revenue because the money that you bring in the door is the only money that matters. In a heavily populated area like Northern California, it is a very reasonable goal to write $100k in new business commission. I know producers who have written in excess of $350k in new business commission in a single year. I also know a personal lines producer that writes over $100k in new business every single year. I can see how that would not be possible in a rural area. I will also mention that the cost of living is high in my area.
My main point was that insurance can be the best job in the world if you have the aptitude and attitude to be a commercial lines producer. I can see where the service side could get boring but anybody who does not like this business was not cut out for sales.
My main point was that insurance can be the best job in the world if you have the aptitude and attitude to be a commercial lines producer. I can see where the service side could get boring but anybody who does not like this business was not cut out for sales.
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Broker4U
- Insurance Journal Fan
- Posts: 4
- Joined: Thu Mar 08, 2007 9:05 pm
- Location: Oakley, Ca.
- Contact:
After looking at all your replies, and getting a general idea on what I'm getting into the bottom line is I'm staying. I spent 27 yrs getting chased, shot at and working night's stealing cars for banks. This is going to be a walk in the park for me. I have the will, and high attitude to be a success story in the insurance field.
I have gone to the person I will be working with, and got everything on paper. 10% commission on everything I bring in until I know what I'm doing. When I go out and make my own calls I'll get 90%. Every client I bring in will be mine, and for me to serve, and keep. If down the road I want to go off on my own, I take my clients with me, or there will be the possibility that we do a partnership. He maybe giving away the farm, but he also has been in business about 16 yrs, and has alot of his own clients.
In the past week after reading some replies I have already gone out and got 3 new prospects..Waahoo...lol...How ever I can assist these companies, with all their insurance needs without limiting myself or them to only one base...I'll cover all the bases as wlunday sazz.
I'm on my way to a whole new career, and this is where I'm staying.
I have gone to the person I will be working with, and got everything on paper. 10% commission on everything I bring in until I know what I'm doing. When I go out and make my own calls I'll get 90%. Every client I bring in will be mine, and for me to serve, and keep. If down the road I want to go off on my own, I take my clients with me, or there will be the possibility that we do a partnership. He maybe giving away the farm, but he also has been in business about 16 yrs, and has alot of his own clients.
In the past week after reading some replies I have already gone out and got 3 new prospects..Waahoo...lol...How ever I can assist these companies, with all their insurance needs without limiting myself or them to only one base...I'll cover all the bases as wlunday sazz.
I'm on my way to a whole new career, and this is where I'm staying.