In the Insurance Business who are you actually working for???

[Life Hawk]

Here is my question. If my agency/upline has me contracted directly to the carriers, do they get a commission off of the business I write? I write Medicare, Life, Dental, Vision and Annuities.

No, not at all... they are your friends and they do that for free.

 

[Ryan S]

Then why make a big deal if someone wanted to sell another companies product that they didn't have under their roof?? If they were doing it for free this wouldn't be an issue. From what has been said to me via the owners is that they get some type of scrape. What that amount is I dont know but I want to know!

 

[DHK]

You missed the sarcasm.

 

[Ryan S]

Apparently I did! lol ... So what type of percentage do they typically get from annuities when I complete one?

 

[Tahoe Ray]

Apparently I did! lol ... So what type of percentage do they typically get from annuities when I complete one?

That is going to depend on whether your upline is direct to the carrier or goes through another upline. That will also vary by carrier and it will also depend on product (MYGA, SPIA, FIA, etc.).

Unless you're captive or work for an agency providing leads, you'll at least want to be at street with your annuities. If you have consistent or higher production, you can likely get above that.

 

[Life Hawk]

Apparently I did! lol ... So what type of percentage do they typically get from annuities when I complete one?

Sorry, was shooting for some humor there.

I won't answer your question directly, but I will say that is a very good question with several answers depending upon a few things. You would do VERY WELL to get not just a quick answer, but a good understanding of that very question.

If you make this a career, knowing how the pennies all line up is an important place to start. Keep asking good questions... but follow that up with your own research as well. I am sure if you dig around here on the forum you will find helpful information.

Keep on asking good questions... and seek out the answers.

"Typically" you run (depending upon type of annuity) some where between 3% on up to 10% on commission.

 

[Tahoe Ray]

Sorry, was shooting for some humor there.


"Typically" you run (depending upon type of annuity) some where between 3% on up to 10% on commission.

A lot of good advice in your post but most competitive MYGAs are closer to 2% -2.5% and the best FIAs are now 5%-7%. Anything much higher than that is normally garbage.

Credit the broker-dealer world finally liking FIAs and the constant arguments between suitability and fiduciary standards for the lesser comp.

 

[Life Hawk]

A lot of good advice in your post but most competitive MYGAs are closer to 2% -2.5% and the best FIAs are now 5%-7%. Anything much higher than that is normally garbage.

Credit the broker-dealer world finally liking FIAs and the constant arguments between suitability and fiduciary standards for the lesser comp.

You are very correct on that one. I can but don't offer any MYGA's... and I have a group of FIA's that run between 5% and 8%.

I've always wondered why tying $ up over a period could in anyway be compared to a complete loss (or possible loss) of capital investment...

 

[Tahoe Ray]

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I've always wondered why tying $ up over a period could in anyway be compared to a complete loss (or possible loss) of capital investment...

Because most of these regs are billsh$t. SPIAs arguably pay some of the lowest comp in the industry and yet everyone extols their virtues. Practically, they have a lifetime surrender.

An FIA with a 10-year surrender and similar income is evil though because you make 2x the comp and the client has upside and flexibility.

Don't kill the messenger.

 

[Markthebroker]

I know this question is going to vary between IMO and the Carriers and whichever line you are selling. So I know that you have different contract levels such as Agent- GA- MGA- IMO-FMO and each one of those has different levels to it, and I know that contract level titles differ between carriers.

I know they say that when you are an Independent Agent or even Captive your "running your own business" in terms of creating your own schedule / and working on commission so you "eat what you kill."

My question is as an Agent who gets contract by a carrier through and IMO and gets put in another agents downline. Who are you actually working for- are you working for the agents in your upline, the IMO, or technically just the carrier.

Just to be clear, most of us ultimately work for "The Man" also known as "Whitey".