Let’s be real, nobody gets into the insurance game to work for free. But if you’re making any of these seven mistakes, that’s basically what’s happening. You’re leaving serious money on the table, and it’s not because you’re bad at sales. It’s because these sneaky commission killers are quietly draining your income while you’re busy closing deals.

The good news? Every single one of these mistakes is fixable. Let’s dive in.

1. You’re Still Tracking Commissions Manually (And It’s Costing You Big)

Remember that feeling when you check your bank account and the deposit doesn’t match what you expected? Yeah, that’s usually a tracking problem.

Manual tracking: whether you’re using spreadsheets, sticky notes, or just hoping for the best: is a recipe for disaster. Miss one high-commission sale in your tracking, and boom, you’re down five to ten thousand dollars without even realizing it. And that’s just from ONE mistake.

The Fix: Get yourself some automated commission tracking. Whether it’s software or a better system through your agency, automation eliminates the human error that’s bleeding your bank account dry. Real-time validation catches mistakes before they become missing paychecks.

Look, I get it: setting up systems isn’t sexy. But neither is calling your landlord to explain why rent’s late because your commission tracking was off.

2. You’re Treating All Commissions Like They’re Already Yours

Here’s a trap almost every agent falls into: You write a policy on Monday, and by Tuesday, you’re mentally spending that commission. The problem? That money isn’t technically yours yet.

Commissions aren’t “earned” until the policy period is complete. Record them as revenue too early, and you’ll face tax headaches and zero buffer when chargebacks hit. And trust me, chargebacks WILL hit.

The Fix: Think of unearned commissions like money you’re holding for someone else: because technically, you are. Only count commissions as earned revenue once the policy period ends. It’s not as fun, but your accountant (and your stress levels) will thank you.

3. You’re Not Reconciling Carrier Statements (At All)

Quick question: When was the last time you actually checked your carrier statements against what hit your account? If you’re scratching your head right now, you’re probably leaving money behind.

Carriers make mistakes. Deposits don’t always match expected amounts. Chargebacks sneak in. And if you’re not reconciling monthly, you’re basically hoping everything works out. Spoiler alert: It doesn’t.

The Fix: Set a calendar reminder for the first of every month. Pull your carrier statements, compare them against your bank deposits, and cross-check everything. It’s boring work, but finding that missing $2,000 commission makes it worth it.

4. You’re Getting Blindsided by Chargebacks

Nothing stings quite like a negative pay period. You’re expecting a nice check, and instead, you owe money because of chargebacks you forgot about or didn’t see coming.

Policies get canceled. Clients change their minds during the free look period. Premiums don’t get paid. When any of this happens, carriers want their money back, and they’re taking it from your next commission check.

The Fix: Build a chargeback buffer. Set aside a percentage of every commission to cover potential clawbacks. Most agents don’t want to hear this: it feels like punishing yourself for success: but it’s the difference between smooth sailing and financial chaos when cancellations happen.

Also, monitor those carrier statements religiously. The earlier you spot adjustments, the better you can plan.

5. You’re Selling the Wrong Plans (Or Non-Commissionable Ones)

This one’s painful because it means you did all the work: prospecting, presenting, closing: and got paid exactly nothing for it.

Not all plans pay commissions. Some plans pay way less than others. And if you’re not staying on top of which is which, you’re essentially volunteering your time to insurance carriers who don’t care about your mortgage payment.

The Fix: Before you pitch a plan, verify it’s commissionable and understand the commission structure. Stay updated on carrier changes: they shift commission structures more often than you’d think. And if you’re working with an IMO or FMO that doesn’t give you good carrier access or commission transparency, maybe it’s time to find partners who actually have your back.

(At Hemati INC, we’re pretty big on making sure agents know exactly what they’re earning and have access to the carriers that actually pay what you’re worth: but that’s a conversation for another time.)

6. You’re Too Comfortable and Not Qualifying Clients Properly

Here’s a scenario: You’ve got decent renewal commissions coming in, so you ease up on the qualifying process. Client seems good, you skip a few steps, write the policy, and move on. Two weeks later: boom: they’re disqualified or cancel during the free look period.

Now that commission gets “backed off” your next check. If you’ve got multiple situations like this, you could end up with a negative pay period even though you’re working your tail off.

The Fix: Never skip qualifying. I know it’s tempting when you’re comfortable or behind on quota, but one bad policy can wipe out the earnings from three good ones. Make sure every client actually qualifies for what you’re selling.

Also, don’t rely too heavily on renewals. Keep your pipeline fresh with new prospects. Comfort is the enemy of consistent commissions.

7. You’re Misrepresenting Coverage (Even Accidentally)

This is the nuclear option of commission mistakes. Give a client wrong information about their coverage, and you’re not just losing commissions: you’re facing potential lawsuits, compliance issues, and E&O insurance claims.

Legal fees can dwarf any commission you earned. And the stress? Not worth it.

The Fix: Know your products inside and out. If you don’t know something, say so and find out. Don’t wing it when it comes to coverage details. Your clients are trusting you with their financial protection: that’s not something to BS your way through.

Also, make sure you’ve got solid E&O insurance. It’s not just about covering mistakes; it’s about protecting everything you’ve built.

The Common Thread: Systems Beat Hustle

Notice a pattern here? Most of these mistakes aren’t about being a bad salesperson. They’re about not having the right systems, support, and structure in place.

You can hustle all day long, but if your backend is a mess: tracking’s off, you’re with carriers that don’t pay well, you don’t have good processes: you’re just working hard to make less money.

The agents who crush it aren’t necessarily working harder. They’re working smarter. They’ve got systems that protect their commissions, partnerships with people who actually care about agent success, and processes that catch mistakes before they cost money.

Your Next Move

Go through this list and honestly assess where you’re vulnerable. You don’t have to fix everything today, but pick one mistake that’s costing you the most and tackle it this week.

Maybe it’s finally setting up automated tracking. Maybe it’s scheduling that first monthly reconciliation. Maybe it’s having a real conversation with your upline about carrier access and commission transparency.

Whatever it is, remember this: Every dollar you’re losing to these mistakes is a dollar that should be in your pocket. You’re doing the work. You deserve to get paid: all of it.

And if you realize you need better support, carrier access, or someone in your corner who’s actually invested in your success? That’s what we’re here for. Check out what we’re doing at FFL.Health or shoot us a message. We’re all about helping agents keep more of what they earn.

Now get out there and plug those leaks. Your bank account will thank you.