Just how High Can Contracts Go??

[PaulieD]

There are many IMO/FMO offering all sorts of contract start rates. I have seen 50-120% contracts to start.

My question is just how high do they go? In theory and in the "real world"?

 

[ExProgrammer]

There are many IMO/FMO offering all sorts of contract start rates. I have seen 50-120% contracts to start.

My question is just how how do they go? In theory and in the "real world"?

Unless they're subsidizing your leads, offering really hands on training, or ripping you off, most IMOs will generally have 100% - 120% for underwritten FE. 60% - 80% for guaranteed issue. Agents with proven production can get higher.

 

[bboman23]

There are many IMO/FMO offering all sorts of contract start rates. I have seen 50-120% contracts to start.

My question is just how how do they go? In theory and in the "real world"?

Depends on the company (not the IMO as much) on how high a company will go. Some companies are 115% at the highest level and some are 150% range at the highest levels. Just depends on the company. What you have to watch out for are the IMO's that give you 50% contract and they make the lion share.

But as long as you get a good deal 100%+ or so then you should be fine. Once you get to certain levels, the companies have production requirements. If a max contract is 150%, NO AGENT would get that level. It would take a down line with SEVERAL million to get there.

Hope this helps.

 

[Cybrspidey]

As Ben said... there is more about being successful and making money in the business than contract level (as long as it's around 100 to start). Training, mentors, access, etc.

What a new agent has to realize, this isn't a get rich quick scheme. This is bust your ass, work hard, learn to write good business and learn when to walk away (as Ben likes to say "I pick my clients, the clients don't pick me!"), and most importantly, have a consistent lead flow! Without it, you're boots up!

 

[Willie B]

Depends on the company (not the IMO as much) on how high a company will go. Some companies are 115% at the highest level and some are 150% range at the highest levels. Just depends on the company. What you have to watch out for are the IMO's that give you 50% contract and they make the lion share.

But as long as you get a good deal 100%+ or so then you should be fine. Once you get to certain levels, the companies have production requirements. If a max contract is 150%, NO AGENT would get that level. It would take a down line with SEVERAL million to get there.

Hope this helps.

I agree with watching out for low contracts, but if they provide fresh leads at no cost and hands in training - it can be a good fit (That's how I started). Most IMO is going to make a "lions share" of their agents. If they are at 140% and give there agents a 100% street level commission and not subsidizing there leads, what is that called? besides a little bit of training what does an IMO deserve to make that large of an override with not contributing to any of the costs.

 

[PaulieD]

Can someone define typical "production levels" for increases?

 

[Cybrspidey]

Typically when you have consistent AP for a couple of months. Such as 10k; 15k; 20k, etc.

 

[Newby]

There are many IMO/FMO offering all sorts of contract start rates. I have seen 50-120% contracts to start.

My question is just how high do they go? In theory and in the "real world"?

Commission levels should not be like an Easter Egg hunt. Any IMO you are considering should have their starting commission levels clearly posted on their website. If they do not or can not send it to you in a published manor at the beginning of your conversation with them then you are not dealing with a very transparent IMO.

If they are trying to ask you a lot of questions before they give you their commission grid they are trying to see how much they can get away with and tweet the numbers in their favor a bit. Every 5-points is important.

Any IMO you are dealing with just let them know you have the FexContracting grid in your hand and they will know that you are aware of what is available to new agents along with proven training and the best lead programs in the business.

Final Expense Commission Levels

 

[NSRH]

MOST Top contracts run between 140% to 150% commissions. The smaller price buster companies are less than that.

I never really understood the insurance industry in the way they pay commissions.

They regulate what "street" is, then force IMO's to "compete" for the same agents, but all the production goes through the same top contract. So there is no skin off the back of the carrier what you pay your agents, because the carrier is paying out the same commissions regardless of what % you are in the hierarchy.

More insurance companies should allow agents to go direct and maximize commission payout, in my opinion.

For example, if top contract is 150%, pay direct agents 125%, cut out the middle man (IMO), and increase your bottom line.

 

[HoosierLife]

MOST Top contracts run between 140% to 150% commissions. The smaller price buster companies are less than that.

I never really understood the insurance industry in the way they pay commissions.

They regulate what "street" is, then force IMO's to "compete" for the same agents, but all the production goes through the same top contract. So there is no skin off the back of the carrier what you pay your agents, because the carrier is paying out the same commissions regardless of what % you are in the hierarchy.

More insurance companies should allow agents to go direct and maximize commission payout, in my opinion.

For example, if top contract is 150%, pay direct agents 125%, cut out the middle man (IMO), and increase your bottom line.

Then who would pay all chargebacks haha??