In the Game now

[jbage007]

The "salary" and other "perks" are paid for by the commissions lost, or retained by the company if you prefer that phraseology.

A decent agent with just 500 cases at 20.00 a month is generating $120,000 annually. Subtract salary and other goodies from that $40,000 which is probably on the high side, and the company is up $80,000, which nets out with the company up about $50,000 after paying out $30,000 in "perpetuities."

Get it yet?

Ok, here's the kicker. Agent leaves. Everything stops, including perpetuities. New monthly income with salary, expenses, etc. now at $0.00

If the agent had produced the same business on his own, his monthly income still would be $10,000, or $120,000 a year. Versus zero.

Not saying the salary system is horrible. Just saying that if you're a producing agent, it's a pitiful way to go, especially when you lose everything day one out the door.

 

[Travis Price]

The "salary" and other "perks" are paid for by the commissions lost, or retained by the company if you prefer that phraseology.

A decent agent with just 500 cases at 20.00 a month is generating $120,000 annually. Subtract salary and other goodies from that $40,000 which is probably on the high side, and the company is up $80,000, which nets out with the company up about $50,000 after paying out $30,000 in "perpetuities."

Get it yet?

Ok, here's the kicker. Agent leaves. Everything stops, including perpetuities. New monthly income with salary, expenses, etc. now at $0.00

If the agent had produced the same business on his own, his monthly income still would be $10,000, or $120,000 a year. Versus zero.

Not saying the salary system is horrible. Just saying that if you're a producing agent, it's a pitiful way to go, especially when you lose everything day one out the door.

So let's start out with the obvious:

Op decided to stay for 10 years. He could have left in year 1-2 and went independent and built out his book.

Secondly, from what I've read he was getting a base of around salary+ smaller Comm+ bonus + benies. Your 120k is with no retirement, no healthcare, and lead costs... Based on averages of HR costs, he was probably coming out ahead. However, Humana knew he was only going to sell Humana. Win/win

Finally, he knew his contract going in. He made the choice to stick around. He can flip his book. He's probably in the absolute best position he can be in.

This career has multiple paths. His may not work for you. However, to unilaterally imply he got a bad deal is completely BS.

 

[vic120]

The "salary" and other "perks" are paid for by the commissions lost, or retained by the company if you prefer that phraseology.

A decent agent with just 500 cases at 20.00 a month is generating $120,000 annually. Subtract salary and other goodies from that $40,000 which is probably on the high side, and the company is up $80,000, which nets out with the company up about $50,000 after paying out $30,000 in "perpetuities."

Get it yet?

Ok, here's the kicker. Agent leaves. Everything stops, including perpetuities. New monthly income with salary, expenses, etc. now at $0.00

If the agent had produced the same business on his own, his monthly income still would be $10,000, or $120,000 a year. Versus zero.

Not saying the salary system is horrible. Just saying that if you're a producing agent, it's a pitiful way to go, especially when you lose everything day one out the door.

That is the difference between being employed vrs Self-employed

 

[Travis Price]

That is the difference between being employed vrs Self-employed

I worked at Monumental Life back in 2005 running an Industrial Route. For those of you that don't know, Industrial Insurance is a super small whole life policy where agents run a debit route collecting premiums.

I was on "salary" and had benies. My salary was based on the premium I had on the books. So, commission and renewals. I paid for all wear and tear on my vehicle (no car reimbursement.)

For my salary, I was carrying 1k in cash on a regular basis in the worst neighborhoods in North Charleston, SC as the only white boy with a big red pickup.

I would have legit taken Humana for 10 years too.

 

[Bevo]

If the agent had produced the same business on his own, his monthly income still would be $10,000, or $120,000 a year. Versus zero.

Not saying the salary system is horrible. Just saying that if you're a producing agent, it's a pitiful way to go, especially when you lose everything day one out the door.

Low Risk = Low Reward. Want the corporate "cush" of steady pay, and not having to fund your own expenses, particularly leads? Then guess what? You pay a price for this cush.

Not stating the OP is doing this, but always I find it incredibly laughable when agents go captive and work for a company that provides EVERYTHING for them, then bitch when they don't get to walk with residuals. The company stole NOTHING. The agent never deserved them in the first place, because their risk was next to nothing.

Want the big prize? Take the big risks and fund your business yourself. Then you deserve the big piece of pie. Take it, or leave it. But stop trying to change the universal rules of the economic game.

Low Risk = Low rewards.

Get it yet?