How much premium do you sell in a month?
Edit - We will be changing our base pay to 13-15$ an hour, and adjusting our bonuses accordingly. This way people who struggle to hit the minimums for bonuses still have a base pay that is decent, and overachievers are not negatively impacted. It pushes all of our pay up. We will also be drawing on the same schedule that we are paying everyone else on. I have also added a picture for you to see our pay schedule. We will likely break this down into 5k increments as well. We also pay for all leads, 5 warm leads a day, and as many leads as people want to cold call.
Also, we are considering adding renewals and likely will add something, but have to figure that out still.
The base listed is based on 15$ an hour.
Hello group! Title says it all. I'm opening an agency in March, and I'm curious as to how much premium you guys sell a month? What state/country are you in, and do you sell P&C, or Life and Health? Independent or captive? I hope it's okay to talk details here, but I'd also love input on our pay structure.
I'm very new and hit around 20k, but is this something I can hope for from the people who work with me? I'm hoping to sell closer to 50k myself, monthly, and I want to get into commercial, while other people in my agency handle more home/auto. We will be captive for now, P&C, and from Michigan.
We are hoping to do a 1k monthly base, and then give full commissions to producers. My husband and mom will start off with me, without a base to either, but full commissions to my mom. My husband's money comes back to us anyways xD. If they work part time, base is cut to 500.
The way our math breaks down - if they can sell 20k a month, with our base, commission, and bonus structure, they walk with 4,500 a month. This averages to 28$ an hour. We profit 3,500 a month off of that because of the bonus structure we get for 3 years.
If they sell 30k a month, their pay averages to 40$ an hour(6.5k a month), and we profit 5,500 a month to reinvest.
Is this fair/reasonable? We want to be generous as those who work with us will be helping us grow. I know this structure doesn't offer renewals, but I feel that it is generous in return for new business, and very doable. This will still be possible for us to pay as well, even when our growth bonuses lower in 3 years. I almost feel guilty taking so much of the bonuses we get though, even though my husband and I are retaining 100% of the risk. (My mom does not currently work anyways haha, and she'll get a base before we hire anyone else.)
Signed, a new and excited/nervous agent who wants to do extremely well after growing up in poverty.