However, newcomers can opt for a “financing scheme” that acts as a base salary for their first two years in the agency. “Depending on the financing scheme tier you choose, you need to hit a certain percentage of that amount in commissions for you to receive the following payout. If not, the threshold for the commission and payout will roll over until you hit your target.”
Most consumers don’t realise how insurance agents are compensated, which can help explain why certain products are often promoted more aggressively.
An agent’s income is wholly commission-based, says Luke (not his real name), a former insurance agent.
