Another Question for the FE Pros...

[jdoz]

Ideally your renewals over 10-years should be around 8% or 72% total over years 2-10.

More and more companies are bumping 1st year and lowering renewals way down. That is good for the company but terrible for the agents who spend the 1st year and depend on the renewals to build their business. Many companies now pay very little for years 6-10.

Perfect exactly what I was curious about. Thank you.

 

[jdoz]

So next question(s)
1) If a brand new agent decides to go through an IMO or someone like EFES what should they expect (or what is a REASONABLE) commission rate?
2 )How long are these contracts in effect? Are you able to renegotiate at some point when you have gained more experience?
3) Do they get their cut of commissions as long as the policy is in effect or just the first year? What happens if you decide to leave, are you able to re-contract w/the providers at some point?
I apologize for the barrage of questions, if these are answered elsewhere please just point me there. Thank you in advance for all the help and sage advice.

Just read JDEASY's answer to GAgal about EFES/Securus (Current Securus or EFES Agents Only Please) and it raised another question:
Is going through EFES with someone like Shannon Davey the same as approching EFES directly, or is signing under him or someone like him in effect adding another layer of commission loss?

 

[jdeasy]

So next question(s)
1) If a brand new agent decides to go through an IMO or someone like EFES what should they expect (or what is a REASONABLE) commission rate?
2 )How long are these contracts in effect? Are you able to renegotiate at some point when you have gained more experience?
3) Do they get their cut of commissions as long as the policy is in effect or just the first year? What happens if you decide to leave, are you able to re-contract w/the providers at some point?
I apologize for the barrage of questions, if these are answered elsewhere please just point me there. Thank you in advance for all the help and sage advice.

Your IMO is going to get a cut of your commissions, first year and renewals. How much cut is "fair" is going to depend on what they do for you.

If all they are is a contract carrier then you should get north of 100% first year and 8 to 10% renewals.

If they are providing leads, training and support then they will get, and earn, more.

I don't about all the others but at EFES you can move up in commissions and renewals as you produce. I would think most IMO's would do the same.

I started in this business at 65% 1st year and 1% renewals.I needed training badly and I needed leads. I got both. They moved me up in commissions rater quickly, { I went from 65% to 80% in about 4 months}.

A new person can get 115% to 120% contracts rather easily today. But not knowing what to do or having anyone to sell to makes those contracts pretty much worthless.

 

[jdoz]

Your IMO is going to get a cut...A new person can get 115% to 120% contracts rather easily today. But not knowing what to do or having anyone to sell to makes those contracts pretty much worthless.

I appreciate your quick reply, I think I was editing my other post (added another question) when you posted this. I have seen you give this advice elsewhere on the forums and I think it is great advice.100 % of 0=0. The reason I asked these questions is to protect myself, to some degree at least, from myself. I can't make reasoned decisions without all the info. I have found in the past that people who want something from you may answer all your questions, and do so honestly, but they know you dont know what questions to ask and thats where you end up getting bitten.

 

[jdeasy]

So next question(s)
1) If a brand new agent decides to go through an IMO or someone like EFES what should they expect (or what is a REASONABLE) commission rate?
2 )How long are these contracts in effect? Are you able to renegotiate at some point when you have gained more experience?
3) Do they get their cut of commissions as long as the policy is in effect or just the first year? What happens if you decide to leave, are you able to re-contract w/the providers at some point?
I apologize for the barrage of questions, if these are answered elsewhere please just point me there. Thank you in advance for all the help and sage advice.

Just read JDEASY's answer to GAgal about EFES/Securus (Current Securus or EFES Agents Only Please) and it raised another question:
Is going through EFES with someone like Shannon Davey the same as approching EFES directly, or is signing under him or someone like him in effect adding another layer of commission loss?

Shannon is one of 3 regional directors with EFES. You cannot contract with EFES above on ehte regional directors so that is cutting out as many middle men as possible. Where people would run into trouble is getting under people two and three levels down from a director.

I would recommend Shannon highly.

 

[jdoz]

You cannot contract with EFES above on ehte regional directors so that is cutting out as many middle men as possible. Where people would run into trouble is getting under people two and three levels down from a director..

Exactly what I was wanting to know. Thank you.

 

[coloradoseniormarket]

Shannon is a good guy and located in Texas.

 

[rousemark]

Shannon is located in Texas.

Will try not to hold that against him,,

 

[coloradoseniormarket]

He just talks funny.

 

[arnguy]

He just talks funny.

So does Mark Rosenthal (Markingriffin) but we don't hold that agaist him. We still like him.