What is a fair compensation package for commision % & base for an agent @ a brand new nationwide agency?

Question

I'm thinking about leaving my current inside phone Personal Lines sales job.current pay is upto 50K but average 37-43 My style is more face to face sales I feel limited as far as earning potential. My current insurance agent is leaving the agency he works @ and is setting up a new agency with NatWide I've met with him and the corp sales manager. It went very well.They feel i'll be a big asset to the new agency. They mentioned a total 12% commision for agency with 8% going to me & a base salary possibly bennies TBD. Is this a standard %.It's only me & him so as it grows im next in line. I dont want 2 undercut my my compensation package. I need 2 know whats an apropriate compensation for the risk of leavin a job with a big co. w/personal growth limits (i have no degree) & great bennies. 4 more income potential.Im 32, got a 200k condo, non-resident 9yo child. My personal expenses are $2700 a month. All comments welcome, licensed agents freel free to contact me directly through my profile

Answer 1

I don't know anything about the insurance industry but I am in the same kind of boat with my real estate business. Instead of remaining with a prominent established brokerage, I decided to jump ship for a hybrid agency about 3 years old. I have taken a cut in commission upfront but the upside is the company offers the opportunity for multiple streams of income which I would never have at the big box brokerage, including the opportunity to profit from the mortgage side of the business and to earn overrides on agents or loan originators that I can recruit anywhere in the country. In essence, I can recruit like a broker but not have the responsibilities and liabilities of a broker. I am also able to concentrate my recruitment on hot real estate markets like Arizona and Las Vegas.

I figured since real estate is a personal business anyway, if it didn't work out I could always go back to the big box and pick up where I left off. It hasn't gotten to that point and although I won't realize an increase until next year I have already earned overrides on my teammates production which has made up for some of the lost %.

It is open to anyone and if you are interested in pursuing the real estate or mortgage business while selling insurance it maybe worth your while. Email me and I will send you the company information.

Answer 2

Drew, I'd be surprised if you could get a salary from this guy, think about it, he's setting up a new agency, probably only a few clients and maybe none due to non-competes or other issues. How long can he keep paying you while you're learning the business and building a pipeline of clients. I'm sure like your current job it took a while before you were making a serious impact on the sales numbers. I'd stay where I'm at if I were you and look for another opportunity. Put your resume in Monster
In whatever state you're going to work you'll need training and a license to practice. If you feel you want to get into the insurance business go for it, but have a hard conversation with the corp. mgr. about expectations and sales cycles.
Good luck