Posted: Tue Nov 13, 2007 5:13 pm Post subject: How Much Do Insurance Agents Make?
Hi scottdwayne7,
Thanks for the question, but it is a very broad one.
The short answer would be that a good insurance agent will make as much as he/she really wants to make.
An insurance agent just starting out with a "captive" company will normally be guaranteed a certain income for the first few months. This period allows the agent to learn the insurance company and the insurance products being offered. Normally at the end of this "guaranteed" period, the agent must have produced sales to at least equal the guaranteed starting income (commissions).
In a situation where an agent works for an independent agency, normally the pay structure is "commission only", but this agent may have access to several thousand established insurance customers. This situation certainly helps in the most difficult area of being an insurance agent - prospecting.
Some insurance agents just want to work on their own and actually be independent agents themselves. I think this is the most difficult way to start an insurance career because it is usually just commissions from new sales and the agent may or may not be furnished prospective customers by the insurance carriers.
How much an insurance agent makes also depends on the lines of insurance in which he/she works. For example - property and casualty insurance may pay a 12-15% commission, while a life insurance contract may pay as high as 100% commission.
I personally know insurance agents who make in excess of $1 Million per year and I also know agents who make $30,000 per year.
There is no ceiling on an insurance agents pay. In fact, most insurance agents I know make exactly what they think they are worth. _________________
I think insurane maze just about covered the whole spectrum of it when he said that an agent generally makes what they think they are worth. I am a captive agent right now and my income has gradually increased over the last few years. I dont think I wouldve been able to do that working a salaried job. But the reason for the increase was not a larger influx of customers, it was my growing confidence in what I was doing. So he is very correct about that.
I read somewhere that when Jim Carey was fresh in his acting career, he wrote himself a check for 10 million dollars and put it in his wallet, knowing that one day he would be able to cash it. Hmmmmmmmmm maybe I should try that for insurance!!!
I read somewhere that when Jim Carey was fresh in his acting career, he wrote himself a check for 10 million dollars and put it in his wallet, knowing that one day he would be able to cash it.
Wow!! I didn't know that. That proves how confident he was about his acting ability.
Anyways, after what Insurance Maze has already said I don't have much to add but your compensation will depend on the following as well
The type of agent you are- captive or independent. If you are a captive agent you are entitled to a fix amount of remuneration over and above the commission you earn from the sales. But at the same time you lose the flexibility to earn from different policies. On the other hand, independent agency runs on ‘no sell, no commission' basis.
The company you are associated with. Typically an agent's commission depends upon the insurance company he is associated with. And all the companies have their own commission structure.
The type insurance you sell. A life agent can earn around 30-50% (approx) commission on term life policies and about 90-95% upon the first year premium of the whole life plan. _________________ Register Now to have your Insurance queries solved.
When I first started out just over 20 years ago I make $50-$60,000/year. I am now a top advisor who does a broad range of wealth management as well for clients.
This week alone I will make $236,000 on new life insurance commissions. In addition I have 20 years of renewals and trailers from investments coming in each week.
If you can make it to the top it is very rewarding. _________________ Register Now to have your Insurance queries solved.
And...if you are energetic, educated, spirited, creative, an entrepreneur and willing to take a bit of a risk...you could even make a half million to a million dollars per year.
You need to have a complete understanding of the inner workings of the internet and with some good help...you'll be there.
I happen to be all of the above...with the exception of having a complete understanding of the internet. Therefore I am not making a million bucks per year.
Posted: Fri Mar 07, 2008 10:03 am Post subject: which license
I am attempting to find out more about the insurance field before I choose to dedicate my time and money. I know there are several different licenses one can obtain in the insurance market. Which do most have and which do you suggest for someone wanting to making 1 million/year? Are some more profitable than others? _________________ Register Now to have your Insurance queries solved.
Which do most have and which do you suggest for someone wanting to making 1 million/year? Are some more profitable than others?
Please understand that there is a HUGE difference between "wanting to make 1million/year" and "doing what it takes to make 1million/year".
It is certainly a possibility, just ask Zig Ziglar.
The best money to be made off a single sale just might be a traditional or indexed deferred annuity. For example, with one particular company, a $100,000 annuity, will pay $9,000 in sales commissions.
Just 112 of these per year will generate your $1 Million.
I don't make as much as Jim Carey and Zig is one of my all-time heros. I'm fairly certain I make more than M3Power and I do so by prosecuting crooked insurance agents. People often come to me for help after they've won a big lawsuit against their insurance company. I write less than 5 or 6 policies each year. Lastyear, I wrote one for a NY couple with an annual premium of just over $6.7 and did a little over $7 in annuities.
Unlike most of the go-getters you'll find in the industry, I was never a [really] good salesman because I never really busted my butt like so many others do. I made MDRT 6 times and had a lot of fun but I never gave it the 110%.
My goal was to make friends with my clients and make sure they knew I always had their best interest in mind. Believe it or not, there is a difference between saying, and actually doing that. Back in the early 90s, I led the entire Sales Division at Metropolitan Life with a referral percentage of over 98%.
No matter what they might think, insurance salespeople are not automatically trusted because they work for any particular company. This is something they "learn and earn." _________________ Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away.
seo, leads, sell 12 deals a year.. I would also hint that marketing comes into play for all these fields. knowledge is nada w/o an equal or more powerful action to back it up.
