Commission Already Low 55% and Joint Work 50% Split

[insurancemet]

My question is are there insurance company who hires you and field train you without doing a 50/50 split. Seems they are all doing split. Someone at my job was willing to do 80/20 but now the owner wants it 50/50. I guess to encourage a new agent to go out with different people. The E andO admin stuff costly .. Low commission of 55% whole life then it will just be about 27%. Is it worth going this route? The 3 joint work I went on was ok, I don't feel I learned much. What do you all think?

 

[jacobtn]

If you are learning the business a 50 percent split is very fair, you earn while you learn. The problem you have is 55 % is very very low. Long term you will need an exit strategy.

 

[Tahoe Ray]

My question is are there insurance company who hires you and field train you without doing a 50/50 split. Seems they are all doing split. Someone at my job was willing to do 80/20 but now the owner wants it 50/50. I guess to encourage a new agent to go out with different people. The E andO admin stuff costly .. Low commission of 55% whole life then it will just be about 27%. Is it worth going this route? The 3 joint work I went on was ok, I don't feel I learned much. What do you all think?

Where are you, NY? 50/50 is a fair split but the overall comp does seem very low. The other problem is you didn't feel that you learned much...how many of the three did you close?

 

[Josh]

Where are you, NY? 50/50 is a fair split but the overall comp does seem very low. The other problem is you didn't feel that you learned much...how many of the three did you close?

Even if it is NY, 50/50 is low. Now, is there any other compensation? Are they providing any type of salary?

 

[Tahoe Ray]

Even if it is NY, 50/50 is low. Now, is there any other compensation? Are they providing any type of salary?

A 50/50 split is low for joint case work? I think the overall comp is low but not the split...as long as you're being taught repeatable processes.

 

[xrac]

55 percent is a percentage dictated by New York law.

 

[Josh]

55 percent is a percentage dictated by New York law.

That's only a piece of the puzzle. You can easily get higher contracts than that, even with non-fraternal companies.

 

[Tahoe Ray]

55 percent is a percentage dictated by New York law.

"Expense Reimbursement Allowance" by the carriers allows for 99/100% comp to the GA. Anything over 80% is going to require a lot of production (and most GAs/IMOs start at 70).

I made a joke about the NY thing but if it really is, this isn't uncommon. 50/50 split on street w/ override to the agent who earned that override level.

 

[PFG Agency]

Find a border state not to far and an IMO that will train you and make the trip! I ran for weeks in end out of town when I started. That's a low comp with the splits and all IMO....

 

[Tahoe Ray]

Find a border state not to far and an IMO that will train you and make the trip! I ran for weeks in end out of town when I started. That's a low comp with the splits and all IMO....

That is illegal according to the NY state dept of insurance. Go to their disciplinary website and you'll see agents racked with fees for this exact offense. The client must have a nexus to the neighboring state in order to do this and even then, you better be ready to defend it.