- 26,134
I Need Advice About My FE Commission
- Thread starter Agent Angie
- Start date
- 19,647
You need to separate the preneed business from the FE business to see whaere you commissions are. 12% on preneed seems pretty good to me. Newby would certainly know more about that.
When FE agents talk about production it's usually in premium dollars not face. I wrote $3000 yesterday, that's annual pemium. If I was at 80% I would make $2400 on that if it's issued and accepted by the clients.
80% is low for an independent agent but not if they are provding the leads and support for you write that $3000 or whatever.
Newby told me about a local funeral home that has an opening. I don't remember what the preneed commision was but the FE commission was 70%. They provide all your leads, the office, and office supplies. That's not a bad deal. As Newby said, it would hard to not make $70,000/yr at that job and a real go getter could easily make over $100,000.
There is a cost to everything we do as agents. I get over 100% contracts but I have to pay for my leads, my office and any and all expenses related to the business. I pay for those things after commissions are received.
You are paying for those same things except you are paying in advance.
Which is better? Probably a different answer for every agent.
When FE agents talk about production it's usually in premium dollars not face. I wrote $3000 yesterday, that's annual pemium. If I was at 80% I would make $2400 on that if it's issued and accepted by the clients.
80% is low for an independent agent but not if they are provding the leads and support for you write that $3000 or whatever.
Newby told me about a local funeral home that has an opening. I don't remember what the preneed commision was but the FE commission was 70%. They provide all your leads, the office, and office supplies. That's not a bad deal. As Newby said, it would hard to not make $70,000/yr at that job and a real go getter could easily make over $100,000.
There is a cost to everything we do as agents. I get over 100% contracts but I have to pay for my leads, my office and any and all expenses related to the business. I pay for those things after commissions are received.
You are paying for those same things except you are paying in advance.
Which is better? Probably a different answer for every agent.
- Thread starter
- #23
Agent Angie
Expert
- 32
Very informative answer. Yes since I am getting free leads and it's 12% usually of face it's not that bad for me being new to the business. By the way, I loved the audio interview you guys did.
- 11,997
So what percentage of the premium are you getting?
- 17,072
Preneed commissions have nothing to do with premium. In fact you give the client choices of premiums (3-pay, 5-pay, 10-pay) and on the same sale that could make the monthly premium range between $150 to $390 per month. All three would pay the same commission.
12% is very good for a new inexperienced preplanner. It's not good for a real experienced one.
My first year as a preplanner my commissions CAPPED at 8% and went as low as 4%. That would be about the equilivent of a final expense agent making around 25% first year with NO renewals. Even at those low commissions I made very good money for the year because I had great training, free leads and everything a new green agent needed to learn and succeed. And I really enjoyed what I was doing. We also had health insurance, company match 401K
Back in those days ForeThought was owned by Hillenbrand Industries (Batesville Caskets and HillRom Hospital Beds) and if you sold 1-million face in a calendar year, they came and picked you up in their private Lear jet and took you to headquarters (Batesville, IN) for wineing and dining. My funeral homes got bought by SCI before I ever reached that and a few years later so many of us were hitting 1-million annually that they wouldn't have enough Lear jets.
You are in a great place if you can do preneed AND final expense. Just keep in mind, wealthy people buy preneed. Poor people buy final expense. You'll do fine.
12% is very good for a new inexperienced preplanner. It's not good for a real experienced one.
My first year as a preplanner my commissions CAPPED at 8% and went as low as 4%. That would be about the equilivent of a final expense agent making around 25% first year with NO renewals. Even at those low commissions I made very good money for the year because I had great training, free leads and everything a new green agent needed to learn and succeed. And I really enjoyed what I was doing. We also had health insurance, company match 401K
Back in those days ForeThought was owned by Hillenbrand Industries (Batesville Caskets and HillRom Hospital Beds) and if you sold 1-million face in a calendar year, they came and picked you up in their private Lear jet and took you to headquarters (Batesville, IN) for wineing and dining. My funeral homes got bought by SCI before I ever reached that and a few years later so many of us were hitting 1-million annually that they wouldn't have enough Lear jets.
You are in a great place if you can do preneed AND final expense. Just keep in mind, wealthy people buy preneed. Poor people buy final expense. You'll do fine.
- Thread starter
- #26
Agent Angie
Expert
- 32
Right Newby. I show them a five pay or ten pay like you said in the preneeds and it works out for everyone. I ask them what they are comfortable with. I don't like putting people in a bad situation.Thanks for the advice about the FE and preneed differences in income.
Too bad there aren't any incentives with Forethought anymore.
My IMO already gave me a bonus last month when I hit 100,000. So I wont complain.
Too bad there aren't any incentives with Forethought anymore.
My IMO already gave me a bonus last month when I hit 100,000. So I wont complain.
- 115
its very simple, and easy looking at what you wrote you are doing fine, however there may be room for higher commission (pm me) but this should not be a distraction from the day to day app, pres, closing,etc. a steady supply of leads is very valuble in this line of work so take time to consider other imo's . : )
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