GR 2011 Commission Going Live Today

[somarco]

what states have the highest premiums

Any state that does not begin or end with the letter "O".

 

[YouGotMyMoney]

Back to the example of my average volume of 700K annually, it's a pay cut but I'm not on Monster.com.

But are you better off marketing other kinds of insurance products?

 

[669comche]

The absolute key with all of this is the advance and the advance period.

12% as earned = Most agents looking for a new career

12% advance 8 or 9 months = Good agents will survive.

 

[YouGotMyMoney]

Right. $100 to gain a deal at 12% with the terribly low $2,500 per copy AV (which is what you get when you troll for leads) and it's tough.

Sure, no prob, $8 net lead cost for filtered leads, close 1:20 $160 COA....if you got an avg AV of $4k, that's still only an advance of about $250 per app for 6 mo advance, $360 for 12.

 

[669comche]

Sure, no prob, $8 net lead cost for filtered leads, close 1:20 $160 COA....if you got an avg AV of $4k, that's still only an advance of about $250 per app for 6 mo advance, $360 for 12.

At 6 months its too skinny a profit margin

12 months is luxury

9 months is doable

 

[SamIam]

But most aren't closing at that rate, so your numbers would be way off.

If you took the industry average then it looks completely different.

You should be easily closing 20% of telemarketed leads if not get a new telemarketer.

 

[djs]

Interesting thought process that advances are the key to making this all happen. Without advances, the first year is hard, but if you make it through that, then it actually gets better.

Of course, you won't recruit many new agents at the new pay rates.

Using your numbers and factoring in an 80% retention ratio, we should all pack up and go home. Nobody advances in California, at least nobody you can sell.

Dan

 

[YouGotMyMoney]

Interesting thought process that advances are the key to making this all happen. Without advances, the first year is hard, but if you make it through that, then it actually gets better.

Of course, you won't recruit many new agents at the new pay rates.

Using your numbers and factoring in an 80% retention ratio, we should all pack up and go home. Nobody advances in California, at least nobody you can sell.

Dan

Correct, but imagine trying to write 3 health apps a week with internet leads in CA with no advances @ 10% commission.

Better off selling Medicare products at least they advance.

And advances are needed for most agents.

 

[Paradigm]

ok if this commission schedule is true. If one is a large individual direct producer or holds a GA contract with an IMO they should be ok. Also since Bonus structures will also be put in place, a producer could actually do better. The new pay for play rules will cause the pikers to pound sand.

 

[stuy119]

I hope they do away with advances, personally. I haven't taken an advance since my 2nd month in the business, when I saw what chargebacks do to your income and how long it can take to recoup.

Sure, it was a struggle at first, but now I have a BoB that is As Earned and brings in enough to market and live off. I hope more agents can't hack it under those conditions, it will make my life even easier.

Give me a 10-15% first year followed by 8-10% after that for individual, and something around $30-45 PEPM or 6% on group and I'll be happy and able to thrive.