Client asking about commission

[goillini52]

The nature of the question makes me think it is actually a hypothetical.

You'll find almost no one worth doing business with will actually ask this question. The people who ask will never buy and you really don't want as a client anyway.

If for some reason it is coming up repeatedly, then you probably need to revisit your presentation and style.

Now sometimes I do get asked how I get paid, and I just tell them the truth. The company pays me for sending them business.

I can't recall ever being asked how much I make on a sale. From the other thread that's going on the subject, it seems to be more common in the financial field.

I'd never ask a salesman how much they'll make if I buy. That would be rude and tactless.

 

[VolAgent]

I can't recall ever being asked how much I make on a sale. From the other thread that's going on the subject, it seems to be more common in the financial field.

I'd never ask a salesman how much they'll make if I buy. That would be rude and tactless.

People tend to ask this when they feel pressured into something they don't think is a good fit. Or when they are just pikers and don't think anyone should make a living.

The second are rare, while the first can be very common if the presentation isn't finding the real problem so it can present a worthwhile solution.

 

[Enter the Race]

How do you handle a client asking about the commission you're making from selling the client a life insurance policy?

Whether it's a $40/month Term policy, a $300/month GUL, or a $75,000 SPL.

Not in this Industry but in other Industries I have gotten asked it. My experience is if they ever ask you what are your commissions, if they doing it before they sign up, it is actually and indirect way of them saying that they think the product is too expensive or overpriced, and if it is after they sign up they may be using it as a way to judge if they are going to cancel, or I had an experience where it was an older more conservative guy and he wanted me to make money and not an older sales guy, he said only way he wouldnt go with me is if the appointment he had later that day end up being female.

Never got asked this in the Real Estate business because you actually have to put what commission your making in the contract by law.

The nature of the question makes me think it is actually a hypothetical.

You'll find almost no one worth doing business with will actually ask this question. The people who ask will never buy and you really don't want as a client anyway.

If for some reason it is coming up repeatedly, then you probably need to revisit your presentation and style.

Now sometimes I do get asked how I get paid, and I just tell them the truth. The company pays me for sending them business.

yes this definetly sounds hypothetical. and I mean 99.9% of the time the client never asks you unless there is something up where they plan on canceling.

There one of those guys who had you over because they don't want to say NO, but plan to cancel.

 

[DHK]

The nuance is that most people believe that "commissions = costs".

That's true in real estate.
That's true in selling securities - mutual funds (A & C shares) and asset management.

But it's not true for life insurance or annuity contracts.

If you happen to be doing permanent life insurance using a "banking" strategy, then you could reference this video:

 

[fed up]

Had a client ask directly because his last agent took an annuity contract and delivered the policy in a brand new car. When he tried to cancel the annuity he was told he would lose 10% of the premium. He asked me how I got paid and I answered honestly that I was not paid out of his contract, nor was the original agent. He asked about my car and I related the story of my motorcycle accident and claim. He signed and we were friends.

 

[DHK]

Had a client ask directly because his last agent took an annuity contract and delivered the policy in a brand new car. When he tried to cancel the annuity he was told he would lose 10% of the premium. He asked me how I got paid and I answered honestly that I was not paid out of his contract, nor was the original agent. He asked about my car and I related the story of my motorcycle accident and claim. He signed and we were friends.

I posted this link in the annuity-version of this thread, but I'll post it here too:
How to explain annuity surrender charges to avoid complaints | ThinkAdvisor

 

[bill3173]

If for some reason it is coming up repeatedly, then you probably need to revisit your presentation and style.

In the last fourteen years, I only remembered being asked that twice. A Doctor client/friend that was buying a lot of stuff, I told him to fork off and that was it. The other was this cranky old skank who wanted to know who was paying me on Ocare.

I made the mistake of telling her the carrier, and she said she'd go direct to the marketplace. But that was early on, when all the libs were high on what the government was doing for them. If I had told her the Fed Gov was paying me, she would have been fine with it.

 

[VolAgent]

In the last fourteen years, I only remembered being asked that twice. A Doctor client/friend that was buying a lot of stuff, I told him to fork off and that was it. The other was this cranky old skank who wanted to know who was paying me on Ocare.

I made the mistake of telling her the carrier, and she said she'd go direct to the marketplace. But that was early on, when all the libs were high on what the government was doing for them. If I had told her the Fed Gov was paying me, she would have been fine with it.

Sounds like the doctor bought anyway? And you were almost certainly better off without the woman. Odds are she would have been a real pain had she bought from you.

 

[bill3173]

Sounds like the doctor bought anyway? And you were almost certainly better off without the woman. Odds are she would have been a real pain had she bought from you.

Yes, he was just asking because he was getting so much (life, ST DI, LT DI, Health, Accident, etc.) He was loading up on policies, and just sort of came out with it "how much are you getting paid on all of this" I told him not enough, but it was fine, and not to worry about it. He told me he wasn't counting my money, which I did appreciate. Btw, he's still a client and ups his DI every year like clock work.

You're right about that older lady, those type are always annoyed about something.