Captive or Independent?

I've recently been presented with two opportunites:

Insurance Producer for Agent
Part Time Salary $1200 per month
15% Comm. on Term
%25 Comm. on Perm
7% Comm. on P&C (Comm. not paid on first $9000 of annualized prem. per month)
No share in renewals
Captive and Exclusive
Growth Potential is purchase of agency with Corporate loan assistance

I am in the process of negotiating the Life Comm. to 50% but will accept 30%.

Independent Agent
Full Time
100% Comm.
start out at 25% Comm. on Life but potential to go up to 50% plus
Large tool kit of customer financial helps available
Growth opportunity wide open

What is your take on this scenario? I'm trying to decide.

Thank you,


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"Salary" , A Draw on Future Commissions
by: L.W.

Thanks Ted for your professional advice. The article on Insurane-Agents Salary was also instructing. I never looked at the hourly pay as a draw on potential sales and never looked at the possible consequences regarding possible reimbursement of the draw if I decided to leave. You really gave me food for thought in moving forward and let me know that there are many other questions that I need answered.

Thanks for your support.

Which is best opportunity?
by: Ted Wolk

Hi L.W.

In looking at both scenarios, I am not very overly impressed with either one due to the commission structure.

However, If I was a new agent, I would start with the one that has the $1200 salary, although some of those salaries can only be an advance on sales, so you need to look at if you are required to pay anything back if you should leave. Take a minute click on the topic that says "Ins agents salary" located on the left middle side of our Nav bars and read that information.

I would hope that you continue to use our website as a training resource to help you grow. We also provide one on one training for new agents located under our sales training tab.

Starting with the salary option will allow peace of mind while learning the business. as you grow and get better, then you can decide if you want to do the agency purchase option. If not, you will have some training and sales experience which will allow you to move on to another company if you decide to do so.

If you have any other questions, feel free to contact me at this forum again.

Good Luck... Ted

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