Commission Rates?

Discussion in 'Getting Started Selling Insurance' started by cratos, Jan 27, 2010.

  1. cratos
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    cratos Expert

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    I am starting with Modern Woodmen of America soon and am starting to second guess the commission schedule based on things I've read here.

    Going from my memory of the contract I will be paid as follows:

    40% on Term (4% renewals for 10 years)
    40 - 65% on Universal and Whole Life depending on the specific product (7% renewals, for 10 years)
    4% on annuities
    Monthly bonuses based on persistency and volume
    55% on GDC of Financial Services (Mutual Funds etc..)
    Almost forgot to include: 2 year business building supplemental income (50% of commissions for first year and 25% in 2nd year; both capped at $2000 in any given month)

    I will be getting trained by the Regional Director who has been with the company for 20 years. I have access to free marketing materials (fliers/info sheets/booklets) and the company provides all fraternal program supplies that I need at no charge. Some supplies and marketing items will cost me. There is an advertising subsidy that I can qualify for based on my production.

    For the more experienced here; Does this look like a balanced/fair package?

    I am 100% new to this industry and am a bit concerned about working on 100% commission. I have worked in retail furniture management/sales in the past, but have spent the last 4 years as a CPA (auditor).

    How long before I can realistically expect to meet my income minimum requirement ($2000 per month after expenses) and replace my current income ($3800 per month after expenses)?
     
    Last edited: Jan 27, 2010
  2. Mark
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    Mark Guru

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    Your commissions are less than half of what other new agents are getting paid.

    Street level is 100% or more on most UL, Whole Life and Term products these days.

    I guess it all depends on what your MGA is going to do for you or help you with.
     
  3. Josh
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    Josh Retired Agent, Current List Broker

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    Considering the low comp they should be giving you piles of free leads and you shouldn't have to pay anything for your marketing.

    Rough rule of thumb:
    50% should = awesome training and free leads
    75% should = subsidized leads and support when you need it.
    100% plus should be you're almost 100% on your own on leads and don't need much training and support.

    Again, those are just rough numbers, but that should give you a better idea of what you should be looking for.
     
  4. cratos
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    cratos Expert

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    There are no leads provided.

    The closest thing would be call lists that can be purchased, for 10 cents a name (I believe).
     
  5. Mark
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    I can hear my kids screaming (NO DEAL,,NO DEAL))

    Tell the banker No deal and pick another briefcase.
     
  6. Justin Bilyj
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    Justin Bilyj Guru

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    I know of a GA that has awesome contracts with WOW, and they have lead drops for you...
     
  7. Josh
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    Josh Retired Agent, Current List Broker

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    Even on a small order I can get them for less than 5 cents/record or less. PM or e-mail me if you want some other options. There are some folks on this board that can do well for you depending on where you're looking for and how much training you need.
     
  8. David C
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    David C Guru

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    I've seen way too many new guys crash and burn trying to be independent from the start. Some of them would have been good for this industry but they didn't last long enough to learn their way around.

    Modern WOW may or may not be a good vehicle for Cratos. But there is just no substitute for a good mentor/manager in the early days.

    All the MWOW/WOW reps I've known who stayed at it have had good success developing leads through their fraternal benefit program.

    Can he easily get 20-40 % more commissions? Yes.

    Can he develop on his own the skills necessary for his success? Maybe. The thing is he doesn't know what he doesn't know, and that's a long learning curve.

    I think many times we do a disservice to new guys by saying you can get way more money by starting as an independent. The real comp can go up quite a bit with matching FICA, bonuses,...

    It can work starting as an indy but I believe the chances are slim when compared to starting in a "career shop" type operation.
     
    Sodapopp likes this.
  9. mistermarty
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    mistermarty New Member

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    Hi-
    I would be interested in some other options please e-mail me when you have a chance.

    Thanks,

    Marty
     
    Last edited: Jan 27, 2010
  10. ABC
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    ABC Guru

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    Where and what carriers are giving 100% comp on WL,UL, and Term without sales quotas?
    I write a small amount of Term a year ($20,000). I had to fight with a handful of GA's to get 95%.

    I do understand if you choose to be a career agent with a carrier you can get higher comps but I am a broker.
     
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