Have you ever heard someone say, "Be careful, the salesperson works on commission?"
There is a high likelihood that if you are an insurance agent you get paid on commission. In fact, you may get paid 100 per cent on commission.
As an independent insurance agent, I am paid 100 per cent on commission. Every time I write a new insurance policy, I get a percentage of that premium. Not only does that not bother me, but I embrace it with pride.
Read our article to know how much does independent insurance make.
I used to feel awkward and uncomfortable if someone asked how I am paid. As I have spent more time in the insurance business I no longer feel that way.
Why Commissioned Based Pay Structure Works
If you work on commission, listen up:
You work as hard as you possibly can to protect your clients with the correct insurance coverage by understanding their needs and risk tolerance. You negotiate coverage and pricing with companies and underwriters. This takes various amounts of time depending on the type of risk involved.
There is tremendous competition in the insurance business. From independent agents to captive agents (State Farm, Allstate) to online companies (Geico) there are many channels where a consumer can purchase insurance.
The consumer has the power to make a choice that bests suits them. Your job is to show them why you are the best value.
There have and will be times in the future where you spend countless hours working on one account only to have the prospect choose another agent. How much did you get paid for those hours of work? If you work on 100 per cent commission the answer is easy: ZERO.
It's certainly disappointing when you work hard for a new client and fall short, but it's part of the business. The simple fact is that the prospect was not convinced that you were the best choice. There could be countless reasons for that. Your job is to work even harder and smarter to get better. (continued.)
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When most people think of commission, they think of a slimy salesman trying to swindle them out of their hard-earned money. That may be true in some cases, but in reality everyone is paid on commission. It may not be commission in the sense of business to business or business to consumer, but when you provide value to your company and get paid for your work it's commission.
What Does Getting Paid on Commission Really Mean?
Getting paid on commission means that the customer values your work, your service, and your product and that they are willing to pay you for that work. If you don't do your job well enough you don't get paid. Pretty simple when you think about it.
When you do great work, you get paid with what Rabbi Daniel Lapin describes in his book ‘Thou Shall Prosper,’ as “certificates of appreciation.”
Those are called dollars. Are you earning your certificates of appreciation?
I can tell instantly when some
one who is providing me a product or service works as if they are in commission. They are not just “going through the motions,” but instead are looking out for my interests by providing a superior experience.
Commission is never given. It must be earned.
One of my favourite quotes is from Zig Ziglar. He says, “You can have everything in life you want, if you will just help other people get what they want.”
How true and how awesome.
Earning a commission is service to others. There is nothing bad about that.
Brent Kelly is the founder of Empowering Sales. His mission is to engage, enlighten, and empower insurance sales professionals.
