Direct Indy Contract with Advances?

[azmedsupagent]

I am a medsupp agent in Arizona with a career agent company and have been concidering going independent. I don't quite have enough renewal income to live on so I need advanced commissions on the business I sell. The company I am with currently pays 27% on med supp business and advances 9 months commission. On top of that I get bonuses for meeting production levels.

My question is are there any med supp companies that directly contract indy agents that offer commission advances? If anyone knows of any companies like this please let me know, this is the only thing holding me back at this point.

 

[GreenSky]

You're getting one hell of a commission. Why not stay where you are?

Rick

 

[captain94]

I am a medsupp agent in Arizona with a career agent company and have been concidering going independent. I don't quite have enough renewal income to live on so I need advanced commissions on the business I sell. The company I am with currently pays 27% on med supp business and advances 9 months commission. On top of that I get bonuses for meeting production levels.

My question is are there any med supp companies that directly contract indy agents that offer commission advances? If anyone knows of any companies like this please let me know, this is the only thing holding me back at this point.

What company are you with that gives you 27%? let me know. Thanks

 

[azmedsupagent]

Physicians Mutual Ins. I am a career agent and get 27% first year, and 15% years 2-6. I am also 100% vested in 5 years. Its a pretty good deal I just have big plans and need to be indy to carry them out. As things are now I would be ok staying with them for 5 years to build a big book of business and then take 100% of that book with me to go indy. It sounds like your implying this commission level is pretty competitive, am I reading you right?

 

[captain94]

Yes... most are 15%-20% what state are you in? do they provide leads?

 

[azmedsupagent]

Yea they do provide leads but its nothing that you can make a living on, the leads I get from them are kinda just some extra gravy...Im in Arizona

 

[Todd King]

27% is a great commission. That's more than anyone else pays. The only problem is that it drops to 15% the second year which is absolutly bottom of the barrell. So they entice you to sell their product using the big 1st year commission then screw you after that...hmmm, nope, not a good deal. To give you an example, I can give my agents 23% with a couple of different companies. That's without a drop in the 2nd year or after. Most med supp companies pay a level commission which works out better for you. If you are really thinking about going independent, it may be a good time to start looking before you put on alot of clients that you contractually can't touch if PM starts raising their rates a bit too much.

 

[azmedsupagent]

I know! Thats exactly what Im thinking. Its just that my concern is that I wont be getting advances on the new business I sell, I still need those to survive right now. Are you also able to pay your agents advances?