Can someone tell me what "street level" means?

[Jim Wright]

I was a carrier rep for over a decade and covered Manhattan/the boroughs/LI/Westchester. That is the single worst expressway in America. And I've lived in LA too. Nothing compares.

Just like unless you're an employee of the agency (or forced on the health side), LOA is the single worst contract you can get.

And it will be like that forever because there is no way to expand it. Of course, someone would have to clean up all of the trash first...

 

[Diana2024]

Yes for exactly the same product. The only difference between the ones that give you the low commissions and the ones that give you the higher commissions is a lot of extra middle men that are taking a cut of your commission.
What you have to do is contact several different agencies at least for tell them to send you in PDF form the commission grids for the companies that you would be selling with them. You want to see first year and renewals.
Commission isn’t the only thing to consider. But it’s a huge one. If you really like one agency the best and they are 5-points down, that’s no big deal. But much more than that and they better really have some magic beans or something.
Very commonly the places with the lowest commissions also have the worst training, worst leads and they won’t release you when you want to leave.

Thank you!

 

[Diana2024]

Yes for exactly the same product. The only difference between the ones that give you the low commissions and the ones that give you the higher commissions is a lot of extra middle men that are taking a cut of your commission.
What you have to do is contact several different agencies at least for tell them to send you in PDF form the commission grids for the companies that you would be selling with them. You want to see first year and renewals.
Commission isn’t the only thing to consider. But it’s a huge one. If you really like one agency the best and they are 5-points down, that’s no big deal. But much more than that and they better really have some magic beans or something.
Very commonly the places with the lowest commissions also have the worst training, worst leads and they won’t release you when you want to leave.

This is the response I received in an email from an IMO that I've been talking to when I asked what the commission is: "Basic rule of thumb… 85% 10 year term, 90-95% 15 year term, 100-105% on 20 and 30 year term. UL and IUL is in the 90-100% range based on carrier and product selection. Yes, you get a bulk from the insurance carrier and an override from us to get you to these gross numbers."

When I asked about commission on renewals during a phone call, his response was that renewals are a very small amount at about 1-2%.

I didn't know to ask for a commission grid but will ask for one now, however that was his response above when I asked about commission ... he did not provide me with a commission grid from the carriers.

What are your thoughts? Thank you.

 

[WinoBlues]

This is the response I received in an email from an IMO that I've been talking to when I asked what the commission is: "Basic rule of thumb… 85% 10 year term, 90-95% 15 year term, 100-105% on 20 and 30 year term. UL and IUL is in the 90-100% range based on carrier and product selection. Yes, you get a bulk from the insurance carrier and an override from us to get you to these gross numbers."

When I asked about commission on renewals during a phone call, his response was that renewals are a very small amount at about 1-2%.

I didn't know to ask for a commission grid but will ask for one now, however that was his response above when I asked about commission ... he did not provide me with a commission grid from the carriers.

What are your thoughts? Thank you.

On FU those numbers are not out of line, in general. However, that override plus comp to reach the total is suspect.

Yes, ask for a full comp grid including this 'override/ bonus' thing.

One more thing on comp.

You should factor in your value to them as well as their value to you.

You are a newbie. They know the odds of you being here in 12 months are rough. They also know you are going to be a time suck that may bail at the first offer of 5 points more.

I started, back during the Flintstone days, at 50% as earned. I didn't know better. However, it was the best place for me. I needed heavy hand holding, multiple ride alongs, classes, that stupid leaders board, a book to run and to be held accountable. I had zero warm market.
They put a lot of time and training into me. Then I bailed.

So, while comp is uber important. Finding someone that will train you, fits your personality and communication style is equally as important when you are new.
IMohsoHO

My FU IMO does everything for me after I email in a one page contact sheet. I would not move contracts for a 10% bump. Maybe even 20%, maybe. But that fits my lifestyle today, not yesterday.

This is an awesome business.
Congratulations.

 

[Diana2024]

On FU those numbers are not out of line, in general. However, that override plus comp to reach the total is suspect.

Yes, ask for a full comp grid including this 'override/ bonus' thing.

One more thing on comp.

You should factor in your value to them as well as their value to you.

You are a newbie. They know the odds of you being here in 12 months are rough. They also know you are going to be a time suck that may bail at the first offer of 5 points more.

I started, back during the Flintstone days, at 50% as earned. I didn't know better. However, it was the best place for me. I needed heavy hand holding, multiple ride alongs, classes, that stupid leaders board, a book to run and to be held accountable. I had zero warm market.
They put a lot of time and training into me. Then I bailed.

So, while comp is uber important. Finding someone that will train you, fits your personality and communication style is equally as important when you are new.
IMohsoHO

My FU IMO does everything for me after I email in a one page contact sheet. I would not move contracts for a 10% bump. Maybe even 20%, maybe. But that fits my lifestyle today, not yesterday.

This is an awesome business.
Congratulations.

Yes, I agree ... being new to this industry, I will need quite a bit of hand holding until I feel comfortable, so I get what you're saying. I'm not worried about giving up some commission to get the support I need. I'm not new to the sales world but I am new to the insurance world. I'm also a licensed real estate agent and when I was first licensed about 20 years ago, I partnered with another agent and gave her part of my commission so that I could learn from her ... and it was worth it to me. So, I totally get what you're saying. And I agree, I definitely feel finding someone that fits my personality and communication style is important ... otherwise, it can be a nightmare.

Wow, sounds like a great situation that you have with your FU IMO. Who do you use?

Thanks for your feedback.

 

[Newby]

This is the response I received in an email from an IMO that I've been talking to when I asked what the commission is: "Basic rule of thumb… 85% 10 year term, 90-95% 15 year term, 100-105% on 20 and 30 year term. UL and IUL is in the 90-100% range based on carrier and product selection. Yes, you get a bulk from the insurance carrier and an override from us to get you to these gross numbers."

When I asked about commission on renewals during a phone call, his response was that renewals are a very small amount at about 1-2%.

I didn't know to ask for a commission grid but will ask for one now, however that was his response above when I asked about commission ... he did not provide me with a commission grid from the carriers.

What are your thoughts? Thank you.

Thanks, but no thanks. He’s avoiding sending you the actual commission levels in print because he wants to leave it open ended so he can slam it in his direction.
He’s also talking about putting you on lower levels, but he has the option to pay you bonuses on top of them from his agency, which is always a bad idea. You want it all paid from the insurance carriers?
I can’t tell you how many agents I talk to a year that signed up with lower commission levels with the promise that when they had certain production requirements, they were going to get bonuses and guess what happened when they finally hit their production requirements? The bonuses magically disappeared.
Nope! Commissions are very simple in this business and very important. There is no reason for your Upline to not give you the PDF showing exactly what you will be paid directly from the carriers before you contract.

 

[Diana2024]

Thanks, but no thanks. He’s avoiding sending you the actual commission levels in print because he wants to leave it open ended so he can slam it in his direction.
He’s also talking about putting you on lower levels, but he has the option to pay you bonuses on top of them from his agency, which is always a bad idea. You want it all paid from the insurance carriers?
I can’t tell you how many agents I talk to a year that signed up with lower commission levels with the promise that when they had certain production requirements, they were going to get bosses and guess what happened when they finally hit their production requirements? The bonuses magically disappeared.
Nope! Commissions are very simple in this business and very important. There is no reason for your applying to Knott give you the PDF showing exactly what you will be paid directly from the carriers before you contract.

Yes, I will not be working with that IMO.

When I asked for the commission grids, this is the response I received via email, "Diana, I think we should go in another direction. I wish you the best as you get your business started."

His response is very telling and shady that he didn't want to provide me with any commission grids. I feel like I dodged a bullet. Thank you for your feedback.

 

[Tahoe Ray]

Nope! Commissions are very simple in this business and very important.

Yep!

And nobody who is an imo/bga/etc. WANTS to be in the accounting business.

It's a giant PITA to pay bonus/true up/whatever so the only reason for that setup (outside of a weird state like NY or some health lines) is to hose the agent.

 

[WinoBlues]

Street.
Level 1
Preferred Level 2
Super duper Gold Level
Super Stud level.

I get temporary lower comp for a green FNG.

Question - on an experienced no hand holding agent, why the different levels? What does an agent that writes $2k a year cost the IMOs over an agent that writes $200k a year? What's the justification for lower comp?

 

[scagnt83]

Anyone not willing to put the comp in writing does not deserve your business.

If they pay you from the agency to get you to Street.... you are not at Street according to your legal contract with the Carrier.