Income Expectation

[Akkula]

I am a former Merrill Lynch who was just laid off. I was only in production for a few months before they laid off a bunch of trainees.

Anyhow, I am considering working for MassMutual or some of other companies that allow me to "own" my book of business if I ever need to go elsewhere. I learned my less on with Merrill!

Anyhow, I wanted to focus a bit more on insurance as well as securities and planning since I can actually work with my natural market more.

I am really trying to figure out, though, how much income I can plan on if I do a 100% commission job and focus on doing a lot of life insurance work to start. Mass pays on the first year premium once you get the first payment.

I got a nifty illustration from them that says I would be expected to earn $86k for my first year. Needless to say, I am a bit skeptical and I want to plan on a worst case scenario.

I am the type of person who doesn't mind prospecting and putting in the 50-60 hours per week, has worked in financial services and is fully licensed in insurance and securities (7 & 66), has an untested natural market, etc. What is a conservative estimate for income that I can use for planning purposes?

$24,000 per year for first year?
$36,000 per year for first year?
$60,000 per year for first year?

 

[Todd King]

Hi and welcome to the forum. I think there are more qualified people on here to answer your above questions. I've alerted one of them to your post, so you should be getting some answers coming your way.

 

[bluemarlin08]

I would plan on 24 first year, and double it the next and the next. Everything will depend on how many people you see and how you are trained. Try to team up with one of their experienced, knowledgable agents and you concentrate on bringing in prospects. Carefully watch what he does, slowly start doing more of the process, ask him lots of questions.

 

[Akkula]

Thanks, does that $24k figure include just the commissions I would produce or does that also include a subsidy?

Can cold calling be an effective way to bring in prospects?

 

[Todd King]

Are you wanting to go independent or still captive? Are you wanting to have an arsenal of weapons or do you want to stick with one company? Can you generate your own leads or at least pay to have them generated or do you need a company who supplies you leads?

 

[xrac]

Based upon your experience and the fact that you seem to understand what is involved and have realistic expectations I think you should be able to do better than $24,000. I would expect something closer to $40,000.

 

[Akkula]

Can I get a $50,000 . Just kidding.

Thanks for all the input. I really like to hear what you all think regarding realistic first year income.

I am probably going to remain captive but work for a company that allows me to still be broker of record on insurance policies even if I decide to move to a different platform. That is why I am considering MassMutual. Any comments on this? I can still write outside insurance but not sure if it is worth the brain damage as Mass seems to be pretty good. Some companies won't let you broker your policies with them if you decide to become a non captive agent.

With my securiites licenses, I really want to do full financial planning and investment advice. Insurance always plays a big role in any financial plan but I won't be a one trick pony since I can also work on the investment side as well. Mass seems to be notch broker/dealer and registered investement advisor on the investment side of things.

I found working at Merrill that I needed to expand my potential market. Younger people typically need insurance work and they don't have enough assets in order for me to get paid solely doing the investment side of things. Older people may have less of an insurance need but more of an retirement planning need on the investment side. It is important for me to find a company where I can address all of these needs.

I appreciate any more comments with respect to input on first year income.

Also, can I successfully supplement my natural market with cold prospecting to business owners?

 

[insuranceexec]

I am a former Merrill Lynch who was just laid off. I was only in production for a few months before they laid off a bunch of trainees.

Anyhow, I am considering working for MassMutual or some of other companies that allow me to "own" my book of business if I ever need to go elsewhere. I learned my less on with Merrill!

Anyhow, I wanted to focus a bit more on insurance as well as securities and planning since I can actually work with my natural market more.

I am really trying to figure out, though, how much income I can plan on if I do a 100% commission job and focus on doing a lot of life insurance work to start. Mass pays on the first year premium once you get the first payment.

I got a nifty illustration from them that says I would be expected to earn $86k for my first year. Needless to say, I am a bit skeptical and I want to plan on a worst case scenario.

I am the type of person who doesn't mind prospecting and putting in the 50-60 hours per week, has worked in financial services and is fully licensed in insurance and securities (7 & 66), has an untested natural market, etc. What is a conservative estimate for income that I can use for planning purposes?

$24,000 per year for first year?
$36,000 per year for first year?
$60,000 per year for first year?

So you have only been in the business for three months?

How much did you make during your training period?

I understand the securities side of things as I am a 7 & 24.

 

[xrac]

If there is a good local office and you have a mentor there is no better place to be captive than MM and they support LEAP.

 

[Akkula]

I brought in a few hundred thousand in assets and got some accounts from departing brokers. We don't do much insurance at a wirehouse. Selling for Merrill in 2008 and 2009 was probably tantamount to selling for AIG for insurance guys.

It will be good to work for a company that has a solid financial foundation because clients tend to notice these things!

Salary at Merrill was $60k per year but I found out that it is better to have a good situation than a high base.