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Thread: Is making an extremely good living as a P&C Agent plausible?

  1. #1
    New User Level 0
    Join Date
    Sep 2015

    Default Is making an extremely good living as a P&C Agent plausible?

    When I say good living I mean $180,000+. Well in my opinion that is really good.

    I am a P&C agent for Brightway and have only been here for a 3 months and based on the weekly sales report and my Agency Owner's commission report (he shows new agents to show us what we can accomplish with years over time) these people are making a ton of money. But whenever I looked at average compensation of insurance agents its only about $50,000 - $70,000 (based on Google Search).

    The Agency Owner at my office has been at Brightway for 8 years and his bi-weekly commission split (New Business, Rewrites, and Renewals) is approximately $10,000 - $12,000 consistently. This is after the Franchise split with Brightway and carrier split and before taxes and software fees etc. So he is earning $240,000 - $288,000 per year before deductions. Isn't that really high for an insurance agent? Is this out of the norm for an agency owner that has been doing this for 8 years?
    He only writes about $10,000 in New Business per week but when he shows us the bi-weekly performance calculations, his renewal premiums are at about $30,000 per term (before splits).

    Obviously as a new agent, seeing this really excites me. But am I getting false hopes?

    The top agent at our agency consistently produces $90,000 per week in new business sales. Two weeks making it $180,000. Even with the lowest commission percentage carrier (10%) that is still $18,000 for the two week term. Brightway takes 15% of new business so that leaves $15,300 for that agent (he is also an agency owner). So in theory this agent would be making approximately $367,200 in new business alone.

    Even the bottom of the top 20 sales agent is selling about $12,000 per week. That would equate to $288,000 per year in new business which is $24,480 per year in just new business.

    So going back to my question, is all this really possible or is there something that they are not telling new agents?

    **Meant to Post this in General Discussion, Not Here**

  2. Last edited by Tylerk; 09-11-2015 at 07:53 AM.

  3. #2
    Super Moderator
    Level 10
    xrac's Avatar
    Join Date
    Sep 2009


    You are looking at the income of successful independent agents who have been in the business more than five (5) years. The avereage income for this group is higher than the average for all agents. The average for agents is brought lower by the large number of agents who are in that 1-3 year category, not make a living wage, and who eventualy drop out deciding the business is not for them. Also independent agents tend to make higher rates of commissions than do the captives. On a term life insurance policy some independents will make north of 100% commission whereas some captives are only paid 30-50% commission. However, realize that the independent have to carry all of their own expenses, FICA, retirement, etc. whereas some captives have these provided.

  4. #3
    Senior Member Level 1 marindependent's Avatar
    Join Date
    Aug 2016
    Marin County California


    XRAC is totally correct. Also its very much depends on what you are selling and where you are selling it.

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