Commission Rates?

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

  1. Full Throttle
    Offline

    Full Throttle Guru

    Posts:
    1,460
    Likes Received:
    0
    State:
    Alabama
    Production bonuses, persistency bonuses, pension contributions, 401(k) match, office space, expenses allowance, sometimes health benefits, those can all need to be calculated in as well. If you produce some volume as you go, many of those contracts become very similar to what can be found in the indy market.

    Either way you go, indy or career agent route, you need two things starting out: training and structure. Here is what I mean:

    Structure: you are a business owner, you need a business model that works. Also, prospecting sucks. If you don't have someone to hold you accountable, especially if you are newer to sales, most will not do the activity necessary to succeed starting out. If you go indy, you won't have the accountability factor, and you also won't have a set business model to just start plowing forward from Day 1.

    Training: You can get product training just about anywhere. Sales training can be bought or aquired as well on the indy side (for example, the ILIAA on both accounts). What an organization like the ILIAA can't do for you is pair you up with an experienced mentor to go on joint sales calls with you. I can't over emphasize how important having an experienced, ethical mentor is to teaching you the life insurance business for the first year. Life insurance in general is sold, not bought like health insurance or med supps which is why the success ratio is so much lower (I've sold both). You can't learn the nuances over a webinar.

    I'm not saying the current outfit is the best fit, I don't know. It's more about the local culture of an agency than anything else. I would at a minimum check out the local Mass Mutual, New York Life, Guardian, and NML offices. Remember, it's your business, you are interviewing them to find the best fit for you. FYI: all of those will have fairly similar payouts.

    Good luck! Indy in life insurance may look the best from the outset, but it's a tough road and it takes a special kind of person to make it. Maybe you are that person, I don't know.
     
  2. ksigmtsu
    Offline

    ksigmtsu Guru

    Posts:
    2,025
    Likes Received:
    0
    State:
    Tennessee
    If you're getting a salary in addition it doesn't sound terrible for a spot to get trained, but I'd be careful what kind of no-compete I signed. It'll take you 3-6 months to figure out how to sell on your own without a good trainer, least that was my experience.
     
  3. souldeux
    Offline

    souldeux Guru

    Posts:
    1,119
    Likes Received:
    6
    State:
    Georgia
    Folks like Assurity and UHL will give you 100% or more on their term products, but the big underwritten guys like West Coast, Pru, Genworth, etc. aren't going to get to that level without requiring production.
     
  4. cratos
    Offline

    cratos Expert

    Posts:
    22
    Likes Received:
    0
    State:
    Georgia
    Thank you everyone for the responses.

    I don't think I'm in a position to begin as an independent.

    Maybe I was confusing percentages quoted on the forum as career model when they were actually independent.

    My primary concern is to ensure that the pay structure is comparable to other career agent models. I do like the company and the people I've met in the local office.

    The RD told me that he is willing to go on sales calls for as long as I want him to, and he does not take a split on the commission (although I'm sure he gets some sort of override anyway).

    I will get pension, 401(k), 7.65% towards taxes, and health/dental benefits. Although there is no salary or expense allowance.
     
  5. David C
    Offline

    David C Guru

    Posts:
    480
    Likes Received:
    1
    What part of the state are you in?
     
  6. cratos
    Offline

    cratos Expert

    Posts:
    22
    Likes Received:
    0
    State:
    Georgia
  7. souldeux
    Offline

    souldeux Guru

    Posts:
    1,119
    Likes Received:
    6
    State:
    Georgia
    Give me a call if you'd like to chat or meet up - I'm downtown.
     
  8. David C
    Offline

    David C Guru

    Posts:
    480
    Likes Received:
    1
    Give Nick a call. He's a good friend to people in this business. And he'll buy the beer.
     
  9. davidp711
    Offline

    davidp711 Super Genius

    Posts:
    210
    Likes Received:
    0
    State:
    Florida
    WOW! That is not good at all. I would consider trying to get out of that contract. Are they at least giving you good training? If so maybe stay for a while to get the good training and then branch out and go independent.
     
  10. Benefits Man
    Offline

    Benefits Man Super Genius

    Posts:
    136
    Likes Received:
    0
    State:
    Texas
    Yeah someone is trying to take you to the cleaners. Definitely shop around.
     
Loading...

Share This Page