Contracting

[New kid]

Hi everyone,

I got my license and I am about to start selling. Few agents already asked me to work with/under them. They say they'll train me and usually everything goes around MA plans. When I bring MA supp and ask how much I'll get paid per sale (per each product or carrier) answer I get is "it depends". I am assuming they make more money when I sell MA. Once an agent who told me "I'll give you 18% for first year, and second it will be 2-3%." 3% in residual commission, what?? Is there any way I can ask for commission structure for supps, compare and see who will give me the most, or what do you recommend?

Thank you,
Bojan

 

[bboman23]

Shoot me an email and I can get our Medicare guy in touch with you. He will give you a breakdown of what you'll receive. 18% is low and those renewals are a joke.

[email protected]

 

[joe92275]

That’s way low. Do not, I repeat...DO NOT sign any insurance carrier contract without a commission schedule from the insurance company. And shop it out. Just because one person gives you one offer, take it to someone else. Those people who are trying to rope you in are trying to get you to assign your commissions. RUN FAR AWAY. Med Sups pay renewals at the first year commission rate for 6 or 7 years. If I had time to train a new agent I’d help you myself....

 

[bboman23]

That’s way low. Do not, I repeat...DO NOT sign any insurance carrier contract without a commission schedule from the insurance company. And shop it out. Just because one person gives you one offer, take it to someone else. Those people who are trying to rope you in are trying to get you to assign your commissions. RUN FAR AWAY. Med Sups pay renewals at the first year commission rate for 6 or 7 years. If I had time to train a new agent I’d help you myself....

100% agree.

 

[Newby]

Contracting for Med Sups is no different from any other insurance product. Same rules apply. The lower the levels that an Upline can get you to sign up at, the more he gets to put in his pocket. Some agencies will test you and put you lower if you haven’t shopped around and educated yourself.

Get full commission grids from multiple agencies. The ones that are too low just go in the shredder. The agencies that give you a run around are not to be considered.

That will narrow your search down to a smaller number of agencies that have shown signs of treating you fairly. Research those and make your decision. Med Sup commissions should be in the 22-23% range for 1st year and renewals. But it can vary by state and some individual companies can be lower or higher.

But match up the actual numbers on the page that you get from the agencies that you consider. That tells you the story. Never fall for vague terms like “street level” or “above street level” which could mean 22% at one agency and 16% at another.

 

[New kid]

Great advice!

Thank you so much!

 

[Lighthouse Ins]

Contracting for Med Sups is no different from any other insurance product. Same rules apply. The lower the levels that an Upline can get you to sign up at, the more he gets to put in his pocket. Some agencies will test you and put you lower if you haven’t shopped around and educated yourself.

Get full commission grids from multiple agencies. The ones that are too low just go in the shredder. The agencies that give you a run around are not to be considered.

That will narrow your search down to a smaller number of agencies that have shown signs of treating you fairly. Research those and make your decision. Med Sup commissions should be in the 22-23% range for 1st year and renewals. But it can vary by state and some individual companies can be lower or higher.

But match up the actual numbers on the page that you get from the agencies that you consider. That tells you the story. Never fall for vague terms like “street level” or “above street level” which could mean 22% at one agency and 16% at another.

22-23% for a brand new agent sounds pretty high. 16 years in the business...I guess I'm with the wrong FMO's.

 

[joe92275]

22-23% for a brand new agent sounds pretty high. 16 years in the business...I guess I'm with the wrong FMO's.

Agreed! More like 19-21 if you are new

 

[Newby]

Agreed! More like 19-21 if you are new

21% might be more like it. What companies pay less than 21% for new agents?

 

[joe92275]

21% might be more like it. What companies pay less than 21% for new agents?

The company doesn’t set the comp level, the upline or IMO does.

United American, Philadelphia American, anthem, UHC is pretty low, there’s more that “street” is below 21 I can’t think of them at the moment.