Help me think through negotiation commission structure

July 6, 2009 8:45 AM

I will be negotiating salary and compensation structure. Starting this month, I will be selling health insurance to companies and individuals. What are some typical compensation arrangements I should be aware of? What other considerations should I keep in mind?

Starting this month, I will begin marketing and selling health insurance/employee benefits to individuals/business owners. I will be working for a small, local firm with an excellent reputation (30 years in business).

I will have to negotiate compensation structure before being hired on. What are typical compensation structures for this type of work? For example, I have heard of compensations structures where there is a base salary for the initial months, coupled with a souped up commission early on and in later years, the salary is reduced as well as the commission.

Basically, I am looking for advice from those of you who have been in the insurance industry who might be able to lend insight and advice as to what compensation plans are the most effective for both producer and company. What should I be thinking about or keep in mind as I negotiate?

posted by yoyoceramic to Work & Money (2 answers total)

Severance package. You're entering possibly maybe non-existent in a few years. You should negotiate a good package in advance so that you're protected.

I'm not being facetious - I have two different close friends who do exactly what you're doing and both are concerned about the future of their industry.
posted by wfrgms at 8:52 AM on July 6, 2009

I recommend Jack Chapman's book on salary negotiation. There's also some good advice on his web site.
posted by valannc at 2:53 PM on July 6, 2009