3 things I wish I knew starting out as a new agent

[BradNC]

1. Commission levels is not the way to determine where you will take home the most money. You can make more on a 50% contract at one place than you can on a 120% somewhere else. People on here will tell you that's sacrilegious, but that's my experience. Having a brokerage that compliments your weaknesses is important and that varies from individual to individual and brokerage to brokerage.
2. All leads are not the same. DM is still the best way to make a good, consistent living, but all DMs are not equal. Some mail houses don't suppress data and you will pay for the same lead month after month because they are serial responders and the mail house knows they will respond. Others will try to sell you old leads as brand new, and that's where the line gets crossed for me.
3. If you keep your ethics and activity high everything else will work itself out. Only put people in situations that are actually better for them and don't lie to the carriers by clean sheeting people and you'll have far better long term results. Pushing for a higher AP causes policies to fall off the books when people can't handle a higher payment. Persistency really is set before the sale. Having a reliable appointment setter from a reputable call center makes your time in the field more efficient and is extra accountability to keep your activity high because multiple people are expecting you to be somewhere at a set time.

 

[Thedude]

1. Commission levels is not the way to determine where you will take home the most money. You can make more on a 50% contract at one place than you can on a 120% somewhere else. People on here will tell you that's sacrilegious, but that's my experience. Having a brokerage that compliments your weaknesses is important and that varies from individual to individual and brokerage to brokerage.
2. All leads are not the same. DM is still the best way to make a good, consistent living, but all DMs are not equal. Some mail houses don't suppress data and you will pay for the same lead month after month because they are serial responders and the mail house knows they will respond. Others will try to sell you old leads as brand new, and that's where the line gets crossed for me.
3. If you keep your ethics and activity high everything else will work itself out. Only put people in situations that are actually better for them and don't lie to the carriers by clean sheeting people and you'll have far better long term results. Pushing for a higher AP causes policies to fall off the books when people can't handle a higher payment. Persistency really is set before the sale. Having a reliable appointment setter from a reputable call center makes your time in the field more efficient and is extra accountability to keep your activity high because multiple people are expecting you to be somewhere at a set time.

How did you not know clean sheeting was bad as a new agent? Putting clients in a better position?

A 50 point contract is pretty low even if being provided leads.

 

[KRobby]

I can go as-earned across the board.

Why?

 

[Todd King]

1. Commission levels is not the way to determine where you will take home the most money. You can make more on a 50% contract at one place than you can on a 120% somewhere else. People on here will tell you that's sacrilegious, but that's my experience. Having a brokerage that compliments your weaknesses is important and that varies from individual to individual and brokerage to brokerage.
2. All leads are not the same. DM is still the best way to make a good, consistent living, but all DMs are not equal. Some mail houses don't suppress data and you will pay for the same lead month after month because they are serial responders and the mail house knows they will respond. Others will try to sell you old leads as brand new, and that's where the line gets crossed for me.
3. If you keep your ethics and activity high everything else will work itself out. Only put people in situations that are actually better for them and don't lie to the carriers by clean sheeting people and you'll have far better long term results. Pushing for a higher AP causes policies to fall off the books when people can't handle a higher payment. Persistency really is set before the sale. Having a reliable appointment setter from a reputable call center makes your time in the field more efficient and is extra accountability to keep your activity high because multiple people are expecting you to be somewhere at a set time.

You haven't been in the business all that long, have you?

 

[LostDollar]

Why?

Looking in as an outsider, your question seems to suggest that there is a greater risk to insurance agents of having their commissions taken back by insurance carriers for reasons other than loosing advanced commissions?

 

[KRobby]

Looking in as an outsider, your question seems to suggest that there is a greater risk to insurance agents of having their commissions taken back by insurance carriers for reasons other than loosing advanced commissions?

I'm guessing it's psychological that some agents do that, which of course is fine. A bank would never opt to take money later that they can receive today.

 

[sshafran]

I'm guessing it's psychological that some agents do that, which of course is fine. A bank would never opt to take money later that they can receive today.

And interest % from the advance loan, if applicable.

 

[rousemark]

I'm guessing it's psychological that some agents do that, which of course is fine. A bank would never opt to take money later that they can receive today.

The reason In take advances is I have a hard time motivating myself to go after a $50 first commission.. $300 is a different story.. As far as the ban goes, they will take the deposit today and will pay interest to get it (though not much these days) on the premise they will put the money to use and earn even more.

 

[AZtinman]

The three most important things a new agent needs to know about BEFORE contracting with an IMO are:

1. Commission rates. If the IMO tells you they pay "street" commission you need to ask the name of the street. Is the name of the street 110%, 100%...or.50%. Yes, new agents can contract for 100% commissions and higher.

2. When your renewal commissions are vested. Renewal commissions can be either vested, nonvested, or conditionally vested. If they are not vested ("vested" means YOU own the renewal commissions on the policies you write) from day one tell the IMO thanks, but no thanks.

3. Contract release. Once a new agent learns a few things about the way their IMO works he may decide he wants to go with another IMO. If you do NOT have a release from your IMO, and they are NOT obligated to give you one, you can NOT go with another IMO for six months. If you do not write business for six months the carriers will release you but that means you have no income for six months. If your IMO will not give you a signed, undated release BEFORE you sign the contracting agreement you need to tell the IMO thanks but no thanks.

Here's link explaining releases and a few other things a new agent NEEDS to know BEFORE signing a contract: iliaa.org/contract-get-release/

Have a great day!
tinman

 

[Baseball7]

If you do NOT have a release from your IMO, and they are NOT obligated to give you one, you can NOT go with another IMO for six months. If you do not write business for six months the carriers will release you but that means you have no income for six months

Not true; there are plenty of companies to survive a 6-mo transition. Been there, done it.