Best Answer: That would depend on your contract, your commission and renewal rate, bonuses, and how much you produce.
In the insurance business, regardless of the percentage of commission, etc. you are in charge of your own destiny.
You must set production goals, based on your short and log-term goals and objectives.
In selling life insurance, you must do a lot of planning in order to reach those goals and objectives. You must be able to prospect, set appointments, fact-find to determine insurance needs, show solutions, handle objections, and close the sale.
In selling property / casualty products, you must write a lot of premiums in order to make a lot of commission. usually, the renewal commissions are the same as the new business commissions. So, in order to build your P&C book of business, you will need to write a lot, and keep most of it on the books.
If you are fortunate enough to be able to quote large commercial cases, you can make a lot of money if your price is competitive enough. This is a very competitive market.
Planning is so important in the insurance business that, "If you fail to plan, you plan to fail".
To answer your question about how much the associate agent or producer would make; the agency would make a certain percentage of the premium. You, as a producer, would be paid a percentage of the total amount of commission that your personal production
would have earned for the agency.
For life insurance sales, the First Year Commission might be 100%. Your portion of the commission that you produced would be anywhere from 40-80%, depending on your contract with the agent.
For P&C, the commission may be 10-15%, and you may get 40-70% of that on your production, depending on your contract.
You would be better off going to work for an insurance company, and not only make higher commissions, a guaranteed starting salary, but get benefits, such as group life and health, disability, dental, 401K, company paid retirement, paid vacation, and opportunities for company-paid convention trips around the world, and opportunities for advancement.
Some companies you could look into are (not in any particular order of preference):
Liberty Mutual, Metlife, Prudential, Monumental Life, Western-Southern life, American National, American General Life & Accident, Liberty Life. Some of these companies may even assign an existing book of business to you, and you would receive service fees, based on the amount of total monthly premiums.
You could also look into companies like Nationwide, State Farm, Allstate to get into their training programs to become company independent agents.
Another company would be Mutual of Omaha. With this company you would be an agent, and paid on commissions, renewals, and bonuses.
Go to the local offices and speak with the managers, or Google each one and apply online.
I wish you the best.
Source(s): Retired agent, 30 yrs.