Commission Rates & Guidance For A Newb

[charlesj]

Hello all. My first post on this forum and looking forward to many more! I appreciate any insight you are able to provide me on my specific issue noted below.

I have almost 2 decades of management experience on the operations side of the fence with insurance, annuities, & brokerage accounts. I am looking to step over into the sales side and I think that final expense is the best starting point.

My biggest question for all of you and most important to me is what commission rates are fair for an independent newb with no selling experience? I am an extremely hard worker and plan on sweating profusely to make this work and invest in the necessary marketing. Any guidance / advice you can provide is most helpful.

Secondly, I have a friend in the business that is willing to show me the ropes and be under him at a rate of 80% commissions. Is this a fair deal? What questions should I be asking? What contract points should I be ironing out? I trust my friend very much. I just want to ensure that I am being smart and that I know what the norm is. If I am not under him, what other training solutions exist in the market and how long does it take for a newb to get up-to-speed?

 

[xrac]

80% commission is fair. What about renewals?

 

[charlesj]

80% commission is fair. What about renewals?

Thanks for your extremely prompt response. And what about renewals is a good question. Would it be customary for the cut to apply to renewals too?

 

[Josh]

Thanks for your extremely prompt response. And what about renewals is a good question. Would it be customary for the cut to apply to renewals too?

It depends on it's direct pay from the carrier or not. I'd always want it done that way as an upline and as a producer.

Will he be providing leads or not so much?

 

[charlesj]

It depends on it's direct pay from the carrier or not. I'd always want it done that way as an upline and as a producer.

Will he be providing leads or not so much?

Thank you so much for your response! Regarding direct pay, we have not discussed this detail. Please forgive my ignorance (I should probably put that in my signature line...), but when you say 'direct pay', I assume you mean that the commissions are not paid directly to him and then divided out to me but rather, there is a commission split at the carrier level and he is paid directly his cut and I am paid directly my cut, correct? If he indicates that all commissions must be paid through him, is that cause for alarm?

Regarding leads, I will be on my own there. His value will be strictly in terms of training and support.

Another question - I guess for me an important question is how long will this arrangement last and at what point would I be able to move out from underneath him? What is customary? I want to do this research now before we start to really discuss the details so I am prepared in formulating something that is mutually beneficial and fair for both of us.

 

[Newby]

Hello all. My first post on this forum and looking forward to many more! I appreciate any insight you are able to provide me on my specific issue noted below.

I have almost 2 decades of management experience on the operations side of the fence with insurance, annuities, & brokerage accounts. I am looking to step over into the sales side and I think that final expense is the best starting point.

My biggest question for all of you and most important to me is what commission rates are fair for an independent newb with no selling experience? I am an extremely hard worker and plan on sweating profusely to make this work and invest in the necessary marketing. Any guidance / advice you can provide is most helpful.

Secondly, I have a friend in the business that is willing to show me the ropes and be under him at a rate of 80% commissions. Is this a fair deal? What questions should I be asking? What contract points should I be ironing out? I trust my friend very much. I just want to ensure that I am being smart and that I know what the norm is. If I am not under him, what other training solutions exist in the market and how long does it take for a newb to get up-to-speed?

80% is about right IF your friend will really take you from square one to where you need to be. I would give him around a year at those contract levels if he really teaches you well.

You can read some of the information at my website at www.fexcontracting.com which addresses many of your questions.

 

[Josh]

Yes, by direct pay I mean paid directly from the carrier.

I'm a big supporter of reduced commissions in exchange for leads and support, but if it's just training and support I think that's a lot less value. Even if he was just pointing you in the direction of his lead source and you were paying for your own, but that he was giving you access to leads would be good.

I think that if someone is going to take you under their wing and train you then you should talk with them about how long they expect it to go for. I think it's dirty pool for an agent to stick around just long enough to figure things out and then cut and run. That said, it doesn't mean they have to spend the rest of their life paying off the "debt". 1-3 years is probably about right.

It might also be the case that they're just not prepared to offer you something that makes sense. In all fairness, I started off at a 50% contract with leads and training and it worked out well for me (AIL), so the 80% in and of itself isn't a problem, but your biggest problem is going to be getting in front of people to talk to, so make sure that's addressed.

 

[charlesj]

Thank you xrac, Newby, and Josh!!! I really appreciate your insight and advice. I look forward to growing in this business and I am loving the support of this forum. You guys are awesome.

 

[jdeasy]

You can find fe leads and get your own contract.
www.aclcontracting.com

Yeah, that's exactly what an agent that doesn't have clue need to do.

Are you on crack??

 

[jacobtn]

You can find fe leads and get your own contract.
www.aclcontracting.com

you going to add any value here, or just pimp contracts?