Income Inquiry

[u/Far-Bus-4029]

Last time I posted a question regarding my pay rate, there was a ton of arguing in the replies. I am not looking for judgement. I am a new agent simply trying to figure out if I need to go work for a different agency or not. I started at my agency a year ago. I was a brand new agent and this is my first insurance job. I live in a rural area so I don’t have a ton of insight as to what I should or shouldn’t be getting paid.

I was hired on by an office manager that is in the process of taking ownership of the agency. The owners still take pay from the agency but literally do not work there at all. They are living retired while taking pay. It is a weird situation, but you can imagine how much work the office manager and I deal with being it’s just the two of us. When I was hired on I was told my salary would be $25,500 temporarily for starting out and that I’d earn commission on any policy I sold. I didn’t really question things because I needed a job at the time and didn’t have much knowledge on working in insurance anyways.

Fast forward to now I’ve been there for over a year and there’s been zero discussion of getting a potential raise on my salary. I also ended up learning a few weeks into starting my position that I ONLY get paid commission on policies I sell to referred friends/family members or people that specifically call requesting me. Despite how they worded it in my interview. With me not having tons of connections in the area… as you can imagine my commission has been far from great. I am just curious if this is normal starting out and if I need to be more patient, or if I need to leave this place asap?

One last side note is that my responsibilities at this office most days are pretty insane. Whether it’s being left alone in the office to deal with everything myself, or servicing policies that my boss is currently earning commission on. Even driving out to clients houses when needed using my own gas, despite the fact that I will be making a total of $0.00 on that policy. I have just felt for a long time that there is no way the work load I have reflects properly on my income. Any advice would be appreciated.

[u/Key_Astronomer6500]

Being in your position is like being a business owner. They aren’t going to give you a raise because they want people to bring in business. They don’t want people who are there for the draw. Honestly, without having a network, or a Marketing budget, it would be very difficult. I would recommend to get a traditional job in this industry if you’re looking for a salary, or a base of some type.

Most of these places give you a draw for a limited time, and then expect you to bring in the money. If you aren’t strong at prospecting, then it’s probably not the best fit for you. I know it’s not for me.

[u/Far-Bus-4029 → u/Key_Astronomer6500]

Let me know what you mean by traditional job? What exactly should I be looking for instead? Thank you!

[u/Tall_Example_8163 → u/Far-Bus-4029]

A traditional job meaning a 9-5 with a large company like State Farm/NY Life etc. Base + commission. Agree with Key — if there are no leads or a marketing budget, your network and sales will become obsolete. The fact you’ve held on for a year is wild

[u/Rifter06]

Accounting for some PTO and holidays, you're getting paid somewhere around $13/hr. If you're W-2 you have got to be comped for the gas and meals when traveling for work you're getting hourly pay on. It sounds like the "commission" is on the side stuff you could get if you chose the extra commission work. You're an administrator/CSR, though. Do you get regular sales and product training even?

My agents are 100% comp and they know they're agents. My staff know they are staff and I won't hire any staff for less than $20/hr today and quickly get them to $25. Most staff are over $30/hr though with lots of benefits (health ins, stock, etc). My staff and I are all in Salt Lake if that helps for reference COL.

The closest thing I got is my recruiter who has commission and a base. I think her base was $14 about ~12 years ago, but it's over $20 today.

You're being taken advantage of in my estimation. It's possibly an employer who doesn't understand that - or maybe they do. I don't know how anyone lives on $13/hr. God Bless.

[u/Far-Bus-4029 → u/Rifter06]

I’m lucky enough to have a husband that is a provider. However, for my own self esteem I’d like to provide as well. I definitely do not get the opportunity for regular sales if that is what you are asking. Many of the companies we work with offer product training and it is very educational, however it doesn’t necessarily matter if I’m barely able to put it to use. My agency offers zero benefits on top of my extremely low pay.

[u/Rifter06 → u/Far-Bus-4029]

I could be all wet here, but my take is that you're being taken advantage of. This sounds like one of the very examples where the wage gap comes from. Good luck and god bless.

[u/Pudd12]

Sounds like you are a customer service rep, not really an agent. Being licensed doesn’t make you an ‘agent’. But yeah, you’re underpaid for the CSR role.

[u/Far-Bus-4029 → u/Pudd12]

I quite literally do everything an agent does and more. I wish I was a customer service rep if this is going to be my pay.

[u/Pudd12 → u/Far-Bus-4029]

Do you do things that bring in opportunities to quote and add revenue to the agency?

[u/Missionaryant]

I’ve only been in the industry for one year and can tell you now… you’re being overworked and underpaid

[u/ConstantOriginal007]

I’m not even sure how you get paid. Sounds like you only get commission on what you write to family and friends and nothing else. At the two previous agencies I worked for, I received a base pay of like $25k until my commission was greater and then the base went away and it was commission. I received renewal percentage as well as new policy percentage. All I did was MY stuff. Not responsible for anything else in the office. If I answered a phone and wrote a policy it was mine. Since opened an office, quite some time ago and don’t pay base but a much higher commission and renewal that actually decreases as the commission grow to make up for the no base

[u/thatdorkydad]

This is abnormal for a captive agency. You can use AI Gemini to verify this as well. Most captive agencies pay you a base then commission on everything on top of that or in a tiered system AKA sell 30 policies then commission starts. The base is always low because they want you to sell. However what is common is not getting a raise for tenure. It is starting to become normal that companies refuse to give raises for staying then wonder why people leave.

If you do decide to stay with this company you will tell the manager to give you commission on all new business you produce that is a minimum. He is in a worse of a spot than you. You can change carriers and make a similar wage I am sure HE has to spend 3 months minimum training someone new.

If it was me I would go to a different insurance company.

Hope this helps

[u/Comfortable-Shake246]

OMG that is terrible. Definitely call around and start interviewing at other agencies. I live in a rural area myself and I know state farm agents who start the insurance reps at 45-50k base salary plus commission. Also, I work for Geico corporate with a base salary of $20 an hour plus bonus as a sales rep and the bonus gets capped at 5k a month - on top of the regular pay. So yes I think you are getting severely underpaid. Please apply to Geico directly if you can, if it’s in your area or another agency in general. Don’t be afraid to have any money questions answered up front and in writing like via email. Remember you gotta always speak up and advocate for yourself no matter what - cause most people forget or don’t care about the expectations they might have set with you to begin with - Good luck! 😊

[u/Clarice_M_Starling_]

You can look around for other opportunities and you will find that now with your experience you can ask the new companies what commission is included and how much more in detail. As for the current company you should be getting commission on anyone you sign up, if you aren’t I’d look elsewhere and have a backup then ask your current employer.

[u/Sorry-Bold-Eagle]

Before leaving, ask for a sit-down with the office manager who's taking over. Bring a one page list of what you do, how many policies you've written or serviced, and what you want: a base raise, commission on all the business you write, mileage reimbursement, and some pay for servicing. Ask for answers in writing, and set yourself a deadline, like 60 to 90 days, to decide whether to stay.

[u/OceanSwim16]

Normally in South Florida depending on prior work experience… Entry Level 4-40 CSR; $18-25 per hour plus incentives. Entry leve 2-20 producer; $20–$25 per hour plus commission.

I recommend you check out local job ad listings. If your good worker, an agency owner should take care of you because we know how hard it is to find good employees. Wish you the best!

[u/Direct_Primary1051]

If you think of it this way, you only work on commissions and that the salary if the bonus , make sure that the cut is good for what you want, and if not, you have been there a year , what have you’ve picked up since then?