Starting out in the insurance industry can feel like drinking from a firehose. You’re learning products, sales strategies, carrier compliance, underwriting guidelines—and on top of it all, you’re trying to figure out how and when you get paid. One question that too many new agents overlook is simple but crucial:
“When Will I Receive my Commissions?”
Understanding commission timelines is key to managing your cash flow, planning your sales pipeline, and avoiding unnecessary financial stress. It’s the difference between having gas money and going broke while waiting for deposits or checks to clear. However, commissions alone are not tantamount to success within this industry.
Brace yourself — we’re about to dive into the hard-hitting questions and real challenges every new agent must face and/or avoid before stepping into this industry. Knowing these truths upfront could be the difference between success and struggle.
Here’s what you need to ask and know:
Don’t get lost in the hype of ‘Unlimited Income’ and ‘Being Your Own Boss’. The sky might be the limit—but only if you know when and HOW you’re getting paid. Ask the REAL questions. Get real answers. ‘Fairy Tale'(s) and ‘Dream'(s) don’t pay the bills.
1. Commission Payouts Vary by Carrier
Not all insurance companies operate on the same schedule. Some carriers pay commissions lightning-fast—within 1 to 3 days after a policy is submitted and maybe without even being approved yet. Others take a more drawn-out approach, paying commissions 20 to 45 days after the fact.
Knowing which carrier pays when helps you better manage your expectations—and your bank account.
2. Advance vs. As-Earned Commissions
It’s not just when you’re paid, but HOW:
-
Advance Commission: Some carriers will front-load your commissions by paying you for several months of premium upfront (commonly 6 or 9 months in advance). This can be helpful for new agents who need income fast, but remember—it can be charged back if the client cancels early.
When a carrier offers advance commission, they’re fronting you a portion of your future earnings. That’s real income in your pocket almost immediately – immediate cash flow. This would provide you with the financial cushion to help you cover your bills, invest in leads and keep your business growing.
-
As-Earned Commission: Other carriers pay you gradually, as the client pays their premiums. It’s the ‘Slow Burn” approach. As earned commissions are paid out month by month or only as the client pays their insurance bill. This reduces chargeback risk, but it also means slower income growth, especially early on.
Each model has its pros and cons, and understanding which one you’re working under helps you plan your finances accordingly.
New agents often hear about “Unlimited Earning Potential,” but without knowing how the money actually flows, they can end up stuck waiting weeks for tiny checks — while their bills are due right now.
When contracting with a new carrier or joining an agency, make sure to always ask the following questions in regards to commissions::
-
How long after submitting a policy do commissions get paid? (Ask per Carrier).
-
Do you pay advance commissions or as-earned? (Each Carrier MAY be different).
- If I open an account, are you going to split yourself into the business or are you just being paid on the override related to my sales? You will be surprised as to how many alleged ‘managers’ give themselves a percentage of business written without telling the agent because they control the commission split entry with the carrier. Inevitably, this results in less pay for the agent as they wonder ‘why’. This is NOT Normal. Can you tell that I have a personal vendetta on this type of behavior?
-
Is there a chargeback policy for early cancellations? If so, how does that impact my Business Quality Index?
-
How are renewals handled and paid?
-
On Broker accounts that I am given access to, what percentage do I retain?
In many cases, when an account is brought in by a broker or senior agent, they’re contractually entitled to a percentage of the commissions — a form of residual compensation for originating the business. This is standard practice in the industry and, when reasonable, reflects the value of their initial relationship-building and deal-making efforts. However, if the broker is taking a significant share — say, more than 30% — without providing any ongoing support or involvement, it’s worth questioning the fairness of that arrangement. At a certain point, it stops being compensation and starts looking like exploitation, especially when the account is simply handed off to a new agent expected to do all the servicing and enrollment work. No matter how big or prestigious the account may seem, if most of the revenue is being siphoned off by someone no longer actively contributing, it’s a red flag. A strong agency compensates fairly and empowers new agents — it doesn’t take advantage of them. - What is my commission percentage? Is it XX out of 100%? You would be surprised how many agencies try to play games with the numbers – advertising commission rates of 85% out of 156% commission. It’s the kind of math where one wonders whether their calculator was just a paper weight. Did they use Monopoly money as a training tool? Did they learn math from a crayon box? Or do they hope that you just won’t ask the right questions? At best, this is misleading. At worst it’s wage theft and misrepresentation with other legal implications and various penalties.
3. What Accounts Will I be Given Access to While I Build my Own Book of Business?
A truly supportive agency doesn’t just hand you a script and wish you luck.
They invest in your early success by assigning you to active accounts for enrollment so you can start earning income immediately. This isn’t just a perk — it’s often the difference between launching a sustainable career and burning through your savings chasing uninterested prospects.
Ask if the agency gives new agents access to unsaturated accounts — meaning accounts where agents are still actively writing business, not ones where the market is tapped out or oversold.
A big, prestigious-sounding group might impress on paper, but if ten agents have already been through it or no one knows your agency exists, you could end up with zero production. Don’t fall for appearances — ask whether new agents are actually making a minimum of at least minimum wage weekly from the accounts they’re assigned.
If they’re not, consider that a red flag and RUN. The right agency will set you up with real opportunity, not just empty promises.
It’s also important to remember that strong agencies and offices often receive reactivation accounts directly from carriers. These are typically dormant or inactive accounts — sometimes dating back several years or even decades — that the carrier wants to bring back onto the books.
Reputable offices and agencies will assign these opportunities to managers- and subsequently their agents- with the resources and training to revive them. If successfully reactivated, these accounts can produce new enrollments and commissions, offering a valuable stream of income with a warmer lead base than starting from scratch.
It’s another sign you’re working with an agency or office that has solid carrier relationships and a real strategy for helping agents grow. Speaking of which …
4. “If I Revive a Long-Neglected Account, Will I be Rewarded for the Results — or Sidelined in Favor of Someone who Abandoned It?”
One of the most disheartening experiences for a new agent is reviving a neglected account — one that hasn’t heard from their original agent in years — only to see it handed back to the very person who let it go cold. Unfortunately, this happens more often than it should, especially under weak, insecure or incompetent management. Real intelligent capable leaders don’t allow this to happen.
Instead of rewarding the agent who put in the effort to rebuild the relationship and generate new revenue, some managers fold under pressure from the previous agent, driven by emotional reactivity and dysregulation or fear of losing that person from the agency. This sends a damaging message to new team members: your effort is ‘appreciated’ – just not enough to matter, and new agents are expendable. New initiative seems welcomed right up until it threatens someone else’s comfort zone aka an agent that has grown comfortable with doing little. These are individuals content to hold onto accounts but have simply never put in the effort to maintain them.
It discourages initiative, devalues hard work, and creates a culture where politics outweigh production. Even more troubling is when managers go against corporate policy — or when carriers themselves side with the inactive agent out of convenience or legacy ties, despite clear losses in premium and client engagement. In a performance-based industry, credit should go to those doing the work — not those throwing tantrums after abandoning their responsibilities
5. What is the Manager’s Leadership Style, and How is Business Distributed Among the Team?
In this industry, it’s not uncommon for top-performing salespeople to be promoted into management roles, even if they’ve never been true team players or lack the skills to support and grow others.
A great manager leads with transparency, shares opportunities fairly, and is invested in your success — not just their own production.
Be wary of environments where managers hoard business or treat the team like competition.
Ethical leadership matters just as much as a strong product portfolio — because no matter how motivated you are, a poor manager can stall your growth before you even get started.
Another important red flag to watch for is when a manager says something like, “Just give me the appointment, and I’ll close it for you.” If they expect you to generate leads but never join you in the field to prospect or provide hands-on coaching, they’re not leading—they’re exploiting you. Effective leadership means rolling up their sleeves alongside you, sharing best practices, and helping you grow your skills.
A manager who simply wants to collect appointments without investing time to develop you likely lacks the experience, skill-set, resilience and commitment needed to truly support your success.
6. Are They Recruiting You for Success – or Just for Their Quota?
Be cautious of managers who focus more on selling you the dream than answering your practical questions.
If you’re met with vague promises of “Unlimited Income” but can’t get clear, specific answers about commission timelines, account access, or support structure, it’s a red flag. In many cases, these managers are under pressure from carriers to hit recruitment quotas and may be more focused on increasing headcount than genuinely setting agents up for success. It can start to feel more like a numbers game than a mentorship opportunity.
A manager who can’t explain how you’ll realistically generate income — or avoids the question entirely — likely doesn’t have a plan for your success. Worse, they might not even care.
A strong agency relationship starts with transparency, not motivational soundbites. Make sure the person bringing you in is as committed to your growth as they are to their recruitment metrics.
7. Will I be Asked to Pay Out-of-Pocket Expenses Before I Start Earning? Are There Any Hidden or Future Fees?
Many agencies will tell new agents they need to purchase their own leads or pay office rent to gain access to accounts or resources. While investing in leads can be a reasonable expectation once you’re established and generating consistent income, it’s important to be cautious about upfront or ongoing fees before you’re financially stable.
Even more concerning is when agencies require office rent or similar charges just to “get access” to accounts or tools. Depending on your state’s regulations, this practice can sometimes cross legal boundaries or violate carrier agreements. Don’t be afraid to contact the carrier directly, your state’s Department of Insurance or Labor Commission to ask if this office’s practice is legal in your state. In fact, if you’re asked to pay “office fees” as a 1099, just RUN RUN RUN RUN RUN!!!!!
Always ask for a clear breakdown of any fees or costs you’ll be responsible for, and verify that these charges comply with your state’s rules. Remember, boundaries are not betrayal.
Protect yourself by understanding what’s expected financially upfront versus what should come later, once you’re truly set up for success.
8. Is Your Manager Actually Going to Coach You? Will You be Getting Support – or Just Pressure?
Another critical red flag to watch for is a manager who consistently shifts the responsibility for your income entirely back onto you.
You may find yourself in recurring “income planning” meetings where the focus is solely on what you’re doing to generate results — with little to no discussion about the tools, support, or opportunities the agency is providing.
While personal accountability is important in this business, it’s equally important to remember that they recruited you, not the other way around.
A true leader doesn’t just ask what you’re doing to make money — they should be actively asking themselves, “What am I doing to help this agent succeed?” If your manager can’t articulate a plan or pathway for your income growth — and is only holding you accountable without providing real support — then you’re not in a partnership; you’re in a performance trap.
It’s common sense when you think about it. When you’re brought into a company with the understanding that you’ll be supported while getting off the ground, who holds the responsibility for your early success – the agent building their future or the manager who promised to help shape it?
Why This Matters for New Agents
When you’re just starting out, every dollar counts. It’s imperative to protect your time, energy and your future. Here’s why understanding the above is vital:
-
Budgeting: Budget realistically. You need to know when income is coming in so you can cover expenses like licensing, leads, marketing, or even just day-to-day living costs.
-
Sales Strategy: Choose carriers and contracts that match your income needs. You might lean toward carriers with quicker or more favorable payout structures to maintain cash flow.
-
Expectations: Avoid being blindsided by slow pay cycles, poor management, broken promises and lack of support. Few things are worse than assuming a check is coming Friday, only to find out it’s weeks away. Let alone that the check may be 1/4th less than what you were assured because your ‘manager’ cut themselves into your revenue.
-
Red Line: While the promise of being your own boss with unlimited earning potential is appealing, that vision loses its value the moment you realize you’re being intentionally – or even inadvertently – undercut by the very people who sold you that dream.
Final Thoughts
Being proactive about all of the above isn’t just about getting paid fairly — it’s about protecting your future and showing yourself the respect your time and talent deserve.
Starting your career in insurance can be one of the most rewarding paths — but only if you’re stepping into the right environment with the right people. Don’t let buzzwords and motivational speeches replace real answers. Ask the uncomfortable questions, demand transparency, and trust your gut when something doesn’t add up. Most insurance offices and agencies need you more than you need them. You were recruited with a promise of opportunity; it’s your right to ensure that promise is being honored. Protect your potential, guard your time and energy, and remember: the right agency will invest in your success — not profit off your confusion.
