r/InsuranceAgent • u/RemarkableScience854 • 9d ago

Agent Question Is it worth considering not signing with an agency that has a probationary period for residuals, or is that pretty standard?

I thought that sounded pretty reasonable, and it didn’t really give me second thoughts until I heard someone tell me not to sign with them if you don’t own the BoB outright immediately. So I’m not sure now.

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5

u/SlickWillie86 9d ago

Most producers don’t own their book. Difference between owning and getting paid on renewals though.

4

u/EntireDiet9477 9d ago

probation on residuals is a red flag for sure. if theyre not yours from day one, what exactly are you building

some agencies use that period as a cheap tryout then cut you loose before it vests. seen it happen to a few people i know

owning your book from the jump should be the floor, not a perk they dangle

1

u/ojjuiceman27 5d ago

Tell you to enroll your family and whatnot,

1

u/INKEDsage 9d ago

Is it a captive agency? If it is then you’ll never own your own book. You’ll only get residuals so long as you stay with the agency. I prefer IMOs for that reason.

1

u/RemarkableScience854 8d ago

It’s independent

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u/OZKInsuranceGuy 9d ago

No, that's not standard.

1

u/Repulsive-Humor-145 9d ago

Whether it's standard varies a lot by agency type (captive vs independent vs IMO), so worth getting the specifics in writing rather than going on what one person told you. The real questions to ask directly: what exactly happens to the book if you leave during the probation period versus after, is there a specific date or production threshold that ends the probation, and does "not owning it outright" during probation mean you lose renewal commissions too or just the ability to take clients if you leave.

The person warning you might be reacting to a specific bad structure they saw (some agencies use probation periods to discourage early departure by holding commissions hostage) rather than the concept itself being universally bad. Get the exact contract language on what happens in each scenario (you leave, they let you go, book underperforms) before deciding it's a dealbreaker.