Colonial Breakdown Por Favor

[Agent49]

I'm interested in adding Colonial as a main insurance line in my independent office, but I do have several questions. Whenever I read about Colonial I find that several terms are thrown around, but if I could get some clarification it would be appreciated. Of course the basics of some may be obvious. Sooo.... opener, enroller, coordinator. I get that you have to test and qualify in these positions, but is there an assigned commission and renewal structure based on these positions or do we have the option of adjusting it? I've also heard about sales leader tracks vs sales tracks and it appears that they structure commissions and bonuses different according to which track you decide you want to be part of. Also, if I'm a broker offering Colonial and I hire an agent to sell Colonial, do the commissions have to go directly split between us or can I divvy it out from the brokerage. Main reason for this question is that I want to maintain "ownership" of clients in case the agent ever strikes out on his own. Any help would be much appreciated.

 

[Josh]

Don't do it. Next question?

 

[arnguy]

A Happy Cinco de Mayo!

 

[akagent]

Don't do it. Next question?

So you mean to say have nothing to do with supplemental insurance?

 

[magagent]

Lots of work for very little money basically. Unless, you personally know large groups that are waiting on you.

So you mean to say have nothing to do with supplemental insurance?

 

[Guest]

You have good questions and you should ask the recruiter and he/she will be happy to answer you.

I wrote Colonial three years ago but gave it up because I felt I got screwed.

I'm sure things have changed but...

... when I was there, enrollers got a flat 15%. Coordinators got 4% (but on small groups this was usually split between the enroller and the opener.0

Openers got different comps based on the products that were sold (by the enroller.) Back then my groups would average me about 22% first year. I forget what the renewals were... which made no difference because when the recession hit hard most of my groups dropped Colonial... or they cut staff so deep there was not much premium collected.

The only people who made money were those who could open AND enroll. The amount of constant study and classes one had to attend order to be an enroller was too much for me... for too little money.

You had to know a large product line ... several term and UL plans, a bunch of hospital indemnity plans, several STD plans, cancer plans, CI plans, accident plans... and Section 125 POP rules.

Colonial training was top-notch and they are a good company... but unfortunately they give their district managers way too much authority to decide splits.

I did 90% of the opening (sales) work on one group but the manager gave another agent (close pal of the manager) 50% of my (23%) comp... when the agent deserved maybe 10%. There was no appeal. Home office told me to pound sand. I quit Colonial.

YMMV.

 

[Josh]

So you mean to say have nothing to do with supplemental insurance?

The colonial program is odd. There are people that make money at it. There are people that make a lot of money at it, but that is hardly the norm. It's a good product if you have an existing client base and you already have the clients lined up for it then it sounds great, but it's a remarkably competitive business and in my experience most of the "mangers" make their money off the handful of cases an agent brings in before they burn out. I'm positive that's not the case in all agencies, but that seems to be a trend.

That all said, there are other companies that offer similar products and you're probably just as well off working with them than you are working with that type of an organization.

 

[VaDwayne]

Waste of time!! LOW COMMISSIONS!!! No offense but I have told my story many times on this forum and I am tired of repeating it, but if you look at some of my previous post you will find my answer..

 

[kheyknee]

I get that you have to test and qualify in these positions, but is there an assigned commission and renewal structure based on these positions or do we have the option of adjusting it?

Colonial sets a preferred commission structure. Commissions are hardcoded by the agent opening the account, and splits are assigned by that agent at that time.

I've also heard about sales leader tracks vs sales tracks and it appears that they structure commissions and bonuses different according to which track you decide you want to be part of.

This is correct as it relates to career agents.

Also, if I'm a broker offering Colonial and I hire an agent to sell Colonial, do the commissions have to go directly split between us or can I divvy it out from the brokerage. Main reason for this question is that I want to maintain "ownership" of clients in case the agent ever strikes out on his own.

Broker contracts differ for career agent contracts: different annual production targets and commission structures. There are specific broker commission schedules designed to address agency needs.

 

[Agent49]

Thanks for all of the information so far. Let me go a little more in depth into my situation.... I'm in a city that has a very heavy penetration rate of AFLAC. Besides AFLAC there are no supplemental companies in town to speak of. If not Colonial, who would you recommend starting with? Supplemental has two purposes for me. The first is just making some money, and I know I have the attitude to make money pounding the pavement. The second is to build a book of business to cross-sell other insurance products that I offer. So.... if not Colonial, then who?
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Al3, thanks for the information. Most helpful so far.