Am I Getting Screwed Through Commission?

[LifeWorth]

Also, I find it hard to believe that he is that competitive on HI comp if he is taking that large of a cut on LI.

It is a health insurance agency. The owner, secretaries, and the agents know nothing about the life business, so, by intuition, the owner feels like the commission schedule for health (taking half of the agents commission) should be the exact same for life business.

He's not going out of his way to screw me over. He just doesn't know any better due to never have gotten involved in the life business. You tell him he has no reason to be taking half of the agents life commission and he will say "but but but----but but---I'm the owner!"

That's just not how the life insurance side of the business is run.

Again: I have no beef with the health commission schedule. But the commission schedule for life is bologna.

 

[scagnt83]

so, by intuition, the owner feels like the commission schedule for health (taking half of the agents commission) should be the exact same for life business.

...

That's just not how the life insurance side of the business is run.

The only reason for him to take half of your health comp is if most of your businesses comes from leads he is providing... or if you are just a very low producer and he needs that large of a cut to cover expenses for you.

But taking half an agents comp... no matter what the product, is not the norm in this industry by any means.

You might be ok with the HI comp. But that doesn't mean your not getting screwed compared to the contracts you could have.... just like on LI.


Imo (& most any other experienced agent) assigned commissions is getting royally screwed already.
The 50% haircut for business you find yourself (no matter product) is just a kick to the groin after already being slapped in the face.

Some local agency owners try to take huge haircuts and are very out of touch with the real on the ground situation. That sounds like your situation.

Figure up 50% of your average monthly comp.
Your expenses cant be more than $500 per month unless you have a closed door office and not a work station (most likely less).
Throw in a 20% profit for the owner, and the difference is how much you are screwed out of each month.


Oh, and there is no reason the owner couldn't amend your life comp. I've never worked in an agency where everyone had the same comp... it is usually on a grid that is production based. That is the exact opposite for not just life but the health side too.

 

[LifeWorth]

The only reason for him to take half of your health comp is if most of your businesses comes from leads he is providing... or if you are just a very low producer and he needs that large of a cut to cover expenses for you.

But taking half an agents comp... no matter what the product, is not the norm in this industry by any means.

You might be ok with the HI comp. But that doesn't mean your not getting screwed compared to the contracts you could have.... just like on LI.


Imo (& most any other experienced agent) assigned commissions is getting royally screwed already.
The 50% haircut for business you find yourself (no matter product) is just a kick to the groin after already being slapped in the face.

Some local agency owners try to take huge haircuts and are very out of touch with the real on the ground situation. That sounds like your situation.

Figure up 50% of your average monthly comp.
Your expenses cant be more than $500 per month unless you have a closed door office and not a work station (most likely less).
Throw in a 20% profit for the owner, and the difference is how much you are screwed out of each month.


Oh, and there is no reason the owner couldn't amend your life comp. I've never worked in an agency where everyone was on the same comp grid. That is the exact opposite for not just life but the health side too.

This thread is just making me more and more frustrated.

He literally des nothing for my life business. I hunt it myself by prospecting.

So what do you suggest? Go up to him and complain? Tell him he's out of touch?

I've already brought it up and was dismissed.

 

[Mattschmidt]

This thread is just making me more and more frustrated.

He literally des nothing for my life business. I hunt it myself by prospecting.

So what do you suggest? Go up to him and complain? Tell him he's out of touch?

I've already brought it up and was dismissed.

I would do what other have suggested...write the life insurance business thru an outside IMO. Problem solved. You get paid more, you're happy, and you don't need to get frustrated on this forum any more.

Don't over complicate things.

 

[WinoBlues]

To me it sounds like you have opened the door and just peeking out. Either close the door and commit yourself to where you are or start planning your exit strategy.

 

[Newby]

This thread is just making me more and more frustrated. He literally des nothing for my life business. I hunt it myself by prospecting. So what do you suggest? Go up to him and complain? Tell him he's out of touch? I've already brought it up and was dismissed.

If you are independent and if he is not supplying you with leads you just call any IMO (like us) and contract with the companies you want. Commissions are all 100% to 120% and paid direct to you.

You still run your health through him.

 

[WinoBlues]

Another thought. You can duel contact with most Life companies, not FE, so that would be easy. However, if you contract with other companies it may show up on the DOI website. So when, not if, they get suspicious they will see them and ask you about them.

 

[VolAgent]

JMO, there is some really bad advice on this thread.

Insurance is about trust. You trust your GA to honor his agreement with you and he trusts you to honor it with him. Half the advice on this thread is about how to get around it. If you can't be trusted to honor your agreement with your GA, why should your clients trust you.

Either accept this is how the office behaves, put your head down and get to work.

OR

Leave. Get the heck out of there.

Personally, I'd just leave.

 

[WinoBlues]

I should clarify, I am suggesting you just get out and not try to have one foot in and one foot out. They will find out.

 

[Full Throttle]

JMO, there is some really bad advice on this thread.

Insurance is about trust. You trust your GA to honor his agreement with you and he trusts you to honor it with him. Half the advice on this thread is about how to get around it. If you can't be trusted to honor your agreement with your GA, why should your clients trust you.

Either accept this is how the office behaves, put your head down and get to work.

OR

Leave. Get the heck out of there.

Personally, I'd just leave.

I second this, you need to have integrity. Either become a health first agent or find a way out as soon as practical. The longer you wait, it will be even more painful to leave renewals behind that you do write.

Instead of "as earned" on life business, you need some advanced contracts to cash flow positive. If you are out in the field prospecting all day, working from home may work. If not, find a cheap office space, it's not for clients to see anyway. Or hook up with a captive life carrier that allows you to broker medical products.

Either way, go all in on your firms medical business model or find another place to place your business as you will always feel cheated. As far as advanced contracts, I don't know what the main options are for independent life agents. I'm sure others can add to that discussion.