December 21, 2023
If you’re an insurance agent or looking to enter into the insurance industry, learning about compensation is critical. Commission structure is one of the top factors that determines how an agent performs and how successful they can be in the industry. An agent can only be as successful as their current organization’s earning potential allows.
That is why it is so important to choose an organization that is aligned with your goals for your business. Before making a change, consider asking yourself, “What does my income need to look like in order to have the lifestyle I would like to have?” Knowing what that is before interviewing can help narrow down your options considerably.
Agents also need to be asking questions from potential organizations they are looking at partnering with. Getting started with any organization can be a significant commitment in both time and resources, so it is important to make the most informed decision possible.
The first question to ask an organization is what the starting commission level is. And more than just the starting commission level, agents need to know what the commission level is on the products they will be selling. Some products may have different compensation levels than others, and ultimately that can impact an agent’s ability to help their clients. An agent may not think they are captive, but rather a broker. However, if compensation on certain products is higher than others, can an agent really be prepared to make a good decision for their client?
The second question agents need to be asking their organization is if the commission level is subject to change. Can agents lose their current commission level? Can it go up? Down? What factors contribute to that? Agents need to ask organizations these questions, but they also need to do their own research, as what an organization does may be different from what they say.
Insurance agents must ask these two questions, otherwise they will just be flying blind when starting out with a new agency. Check out our site and find out more about how you can make sure that as you get into the industry of sales, you can do the best things for yourself.