Does Transparency Really Pay Off?

[VolAgent]

This has been an interesting discussion.

Regarding the commission, I guess it makes sense in our industry that most (99%) of people don't ask for our commissions. In the case where I was asked, it could have been due to lack of rapport as previously pointed out by another member.

When I spoke with people in other industries, the buyer wanted to know the rep's margins and costs (in some cases commission percentage). The only reason I can see why this type of "sensitive" or private information is requested is because the price of the product can be negotiated. We cannot change the prices.

Interestingly, however, in the real estate industry, where most people know that realtors make 3% (most of the time when you are the buyer's agent), some clients would not hesitate to ask for some of that money, which can legally be given by the agent in the closing documents (my friend who is a realtor does this for the clients that ask for some rebate/kickback).

That has always been part of my attraction to insurance. I personally have no control over the price and my commission doesn't matter to the price. Depending on who holds my contract and other factors, I might get anywhere from 50% all the way up to 130% for selling the exact same product. But the price still remains the same to the consumer.

If a consumer is asking you what your commission is in this setting, either you did something wrong or it probably is someone you don't want to do business with.

 

[wingateexpress]

I have had a couple times when a prospect said, "How much is it going to cost for you to come out here."

These people always buy!

 

[xrac]

That has always been part of my attraction to insurance. I personally have no control over the price and my commission doesn't matter to the price. Depending on who holds my contract and other factors, I might get anywhere from 50% all the way up to 130% for selling the exact same product. But the price still remains the same to the consumer. If a consumer is asking you what your commission is in this setting, either you did something wrong or it probably is someone you don't want to do business with.

Vol agent is right. Commission is a unless discussion since the agent has no control of the price and in all but two states kickbacks or rebating is illegal.

 

[VolAgent]

I have had a couple times when a prospect said, "How much is it going to cost for you to come out here."

These people always buy!

There is a difference between, "So, how much do I have to pay you?" and, "So what is your commission on this?"

The first is an excellent question, they want it and they see you have value. The second is generally going to be a problem.

 

[wingateexpress]

There is a difference between, "So, how much do I have to pay you?" and, "So what is your commission on this?"

The first is an excellent question, they want it and they see you have value. The second is generally going to be a problem.

Yes, I've never had someone ask me about my commission. Frankly, I think that's odd.

 

[Norwayguy]

Yes, I've never had someone ask me about my commission. Frankly, I think that's odd.

I have been asked once by a former Primerica agent. He wanted me to kickback some of the commission to him. I explained it would only be legal if he was still a licensed agent and two I did not work that way and if it was an issue it was nice meeting him.