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 Posted: Wed Sep 05, 2007 12:25 am Post subject: Agent Pay |
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I am a 4 year Independent Agent with a with a large Agency. I have been successful although I believe I should be compensated more. My contract is up next month for renegotiation. I currently receive a base salary of $25,000 and 25% commission on new business. Nothing currently on renewals. I guess I would like to know how this compares to other Agency pay out there. Also, what is common in the independent agency world for renewal commission pay as well as new business commission. I think that I have been making my boss a hell of a lot of money and I just want to know how my pay structure compares to other agencies. Thanks
Ryan
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R K
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| Posted: Wed Sep 05, 2007 6:39 am Post subject: explanation of commissions! |
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My friend, let me first tell you that there are 2 basic types of commission available- the initial & renewal commission. The ‘ initial commission' is dependent on the amount of contribution, may vary from 0% to 5% . But in the case of the premium products eg. TLI, this commission is calculated on the initial years' premium. That might just amount to 25% worth of premiums or even greater than that.
But whenever we get to compare this amount with the renewal commissions then we arrive at a figure which varies from 0% to 0.5% of the worth of investment done. But you should also know that when it comes to endowments or TLI the commission would just be an amount worth of 2.5 % of the premiums paid in each month. Got that !
Regards, Fatman |
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fatman
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| Posted: Wed Sep 05, 2007 7:25 am Post subject: Check it out! |
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Hi R K!
I'd agree to all that 25% stuff but since you do belong to a large concern as you have already mentioned, so I'm bound to assume that you're into one of the premium products in the market. Now, having said that I'd lay stress on the fact that you're getting an amount equivalent of the 25% of the new business that you're generating, which as explained by Fatman seems just the initial amount that an agent would get at the beginning of his career!
So now its upto you and your negotiating skills, RobertClarkeOlay
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RobertClarkeOlay
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| Posted: Wed Sep 05, 2007 11:23 am Post subject: All the best! |
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Hey there, after going through your post I had gone through some financial materials & a study caught my eyes that reveals the median yearly earnings of brokers in 2004 was around $42,000. The mid-segmented brokers were lying between $30,000-$66,000, while the senior agents were obtaining any amount around $1,10,000.
So if that was what the market was like way back in 2004, (keeping in mind the rate of growth of the industry) then I feel you have the right to re-think your position. All the best! ArindamSenIndies |
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ArindamSenIndies
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| Posted: Wed Sep 05, 2007 1:55 pm Post subject: Agent Pay |
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I am a property & casualty agent specializing in auto, home and business insurance. This may or may not change your answers. Let me know. Any more input would be greatly appreciated.
R K
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R K
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lakemen
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| Posted: Thu Mar 31, 2011 11:54 pm Post subject: IqsagnLQeJoZWiuKp |
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Insuranceagent.. Dandy 
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| Posted: Fri Apr 22, 2011 12:02 pm Post subject: EfzREDPwfwTwEnrpi |
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Insuranceagent.. Retweeted it
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| Posted: Thu Apr 28, 2011 1:25 am Post subject: VNewGeFlVGK |
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Insuranceagent.. Smashing
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| Posted: Thu Jun 02, 2011 11:02 pm Post subject: VcQXNTVXALdIquiNLBY |
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Insuranceagent.. OMG!
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| Posted: Fri Jun 03, 2011 4:48 am Post subject: uxwMbpznOUdAXIg |
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Insuranceagent.. May I repost it?
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