Most agencies don't pay residuals, and that's normal. Here is what commission usually looks like, and the terms that matter more than the headline rate.
Commission is the part of an offer people focus on most and understand least. A headline rate tells you very little on its own. What matters is when you're paid, what can be taken back, and what happens to the business you write after you leave.
For most insurance sales, the bulk of what you earn comes when the policy is sold or becomes active. That's the first-year commission. The rate depends on the carrier, the product, and your agreement with the agency.
Some agencies pay commission up front, as an advance, once a policy is issued. Others pay as the customer's premiums come in. Advanced commission feels better, but it's the version that can be taken back if the policy doesn't last. Ask which one applies to you.
If a customer cancels or stops paying early, the carrier can claw back part of the commission it paid, and the agency may pass that back to you. This is standard across the industry. What matters is the window (how long you're exposed), how it's calculated, and whether you can still owe money after you leave.
Residuals are ongoing payments on a policy after the first year, usually when a customer renews or keeps paying. Many people come into insurance assuming residuals are standard.
In many agencies, they aren't. A lot of health and Medicare-focused agencies pay mostly on first-year commission, and renewal income is smaller or goes to the agency. That isn't a red flag by itself. It's how many of these agencies are built. The red flag is an agency that talks about residual income without telling you what it actually pays you.
Commission rewards the work you do, and it also carries risk. A strong rate with a long chargeback window and deductions can pay less than a lower rate with clean terms. Read the agreement, not just the number, and we'll help you know what to look for before you sign. We can't promise any agent's income.