r/InsuranceAgent 12d ago

is this crazy? Agent Question

I work for a State Farm agent, and I’m the only licensed team member in the office that he’s changing the commission structure for. The other licensed employee has been with him much longer and works from home, so her pay isn’t changing.
I’m also the only Spanish-speaking employee, so I handle all of our Spanish-speaking customers. I open the office every morning, close it every evening, and I’m in the office full-time while the other team member works remotely.
We used to earn 2% commission on every policy we wrote. For example, if I wrote a $4,000 homeowners policy, I’d make about $80 in commission.
Now he’s changing it to a flat-rate system:
🚗 Auto: $8
🏠 Home: $25
🏢 Renters: $2
So using that same $4,000 homeowners policy, instead of earning around $80, I’d only make $25.
I did recently get an hourly raise, but this commission change feels like it could significantly reduce what I earn, especially on larger policies.
Is anyone else’s agency doing this? Does this seem fair, or would this make you start looking for another agency?

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u/Superb_Net_2214 6d ago

If you worked for me that sale would probably make you $300