I am working for a company that provides leads for me to sell Equity indexed annuities through seminars.. I get paid 36k base, then if I sell an annuity that pays 6% street, I get 30% of half of street....For Example....client buys annuity for 100k premium...6000.00 gross commission, 3000.00 hits my grid and I get 30% of the 3000.00....is this typical?
AM I GETTING SCAMMED
- Thread starter indy100
- Start date
- 2,291
What's in your contract? I'll guess it is 30% of 1/2 of 6% of the value of the annuity. Seems low, I am used to seeing up to 4% of the contract but I am out of sales right now.
- 11,454
1. Do you have an exit strategy once you can create your own leads? Your base is costing you a lot of potential income... but until you have an exit strategy and a way to generate your own leads, you probably should stay where you're at.
2. Can you also sell additional products outside of this agreement?
2. Can you also sell additional products outside of this agreement?
You can use your closing percentage to estimate how much you'd need to write if you bought leads (certainly better to get prospects from other sources but this is the only way to do the math with some certainty).
You can make your base by personally writing 600k @ 6%. Your closing percentage is going to tell you how much more you need to write to buy your leads. Annuity leads are going to run you 300 bucks a piece.
So, how many leads are you closing and what's your average premium per 100 leads?
You can make your base by personally writing 600k @ 6%. Your closing percentage is going to tell you how much more you need to write to buy your leads. Annuity leads are going to run you 300 bucks a piece.
So, how many leads are you closing and what's your average premium per 100 leads?
Where are these leads from? FB, radio call-ins, etc.?
And what was given or offered to get the lead?
Do you know?
Most are landing pages via Google ads, big direct sites, FB, or organic seo.
Nothing offered other than annuities or ad copy that's annuity related.
- 10,702
Its not a typical situation. However, that doesnt make it a bad thing. It is a unique starting position that is not normal to find.
Lets simplify all this math.
You get $36k base, plus 0.9% of sales/assets.
But you get a base salary of $3k per month... which is almost unheard of in the life/annuity industry. Most agencies pay $0 in base salary.
It gives you the opportunity to learn with a huge safety net underneath you. Hopefully they are providing training and other support as well as part of this deal. Perhaps they cover overhead to some extent and provide an office space? Even if you pay them a fee for overhead, its likely a fraction of what that setup would cost to recreate on your own.
After you gain experience and have a steady closing ratio to go by, you can go out on your own as an independent agent after making sure the math works out on your side.
But that means generating your own source of leads via ads or a website. Which is either very expensive, or very time consuming (or a bit of both). If you can generate the same volume of prospects, your income will increase greatly. If you cant, it could certainly stay the same or decrease because of money spent generating or buying leads.
So are you getting scammed?? That depends on if you are able to generate the same volume & quality of leads, along with a suitable infrastructure. If you can, then yes, you are getting scammed. If you cant, then no, you are not getting scammed.
Its an entry position that makes sense imo, assuming they are providing guidance and hopefully some overhead. Many agents who failed the industry would have loved to have found a setup like this to start out with and learn the ropes with a safety net of a base income.
If they do not have any options for moving up the comp ladder. Plan your exit from the beginning. Create a website and in a couple years you should be able to get the same amount of leads coming in. Or you will at least have a platform ready to go for landing pages, etc.
Its a risk/reward trade off. They take on the financial risk, they get most of the reward. When you take on the full financial risk, you get the full reward.
Lets simplify all this math.
You get $36k base, plus 0.9% of sales/assets.
But you get a base salary of $3k per month... which is almost unheard of in the life/annuity industry. Most agencies pay $0 in base salary.
It gives you the opportunity to learn with a huge safety net underneath you. Hopefully they are providing training and other support as well as part of this deal. Perhaps they cover overhead to some extent and provide an office space? Even if you pay them a fee for overhead, its likely a fraction of what that setup would cost to recreate on your own.
After you gain experience and have a steady closing ratio to go by, you can go out on your own as an independent agent after making sure the math works out on your side.
But that means generating your own source of leads via ads or a website. Which is either very expensive, or very time consuming (or a bit of both). If you can generate the same volume of prospects, your income will increase greatly. If you cant, it could certainly stay the same or decrease because of money spent generating or buying leads.
So are you getting scammed?? That depends on if you are able to generate the same volume & quality of leads, along with a suitable infrastructure. If you can, then yes, you are getting scammed. If you cant, then no, you are not getting scammed.
Its an entry position that makes sense imo, assuming they are providing guidance and hopefully some overhead. Many agents who failed the industry would have loved to have found a setup like this to start out with and learn the ropes with a safety net of a base income.
If they do not have any options for moving up the comp ladder. Plan your exit from the beginning. Create a website and in a couple years you should be able to get the same amount of leads coming in. Or you will at least have a platform ready to go for landing pages, etc.
Its a risk/reward trade off. They take on the financial risk, they get most of the reward. When you take on the full financial risk, you get the full reward.
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