Just wondering about commission rates

[Travis Price]

At one time I sold term insurance nationwide. Back then you could buy a true exclusive lead at a decent price. You wouldn't think a 65 year old farmer in Montana would buy a $5M policy from an agent in FL that he never met, but he did. Sold many large premium cases.

Now you can't get a decent lead so I don't target that market. Still work my book and sell quite a few. Placed a $30,000AP in February. Had a contractor with a $500,000 policy call me yesterday about converting. One client wants to sell his policy so I am getting offers. Always money to be made, but no renewals.

Thanks for your insight. Currently, I run a Medicare Insurance website which the main source of leads for me. I'm thinking of doing a side project for an "in case of emergency, break glass" in case Medicare implodes (not likely, but who knows.)

I definitely think I can get the traffic for leads, I'm more concerned if the value is there for me off of just term. I'd be focusing on higher risk hobbies.

 

[Tahoe Ray]

Thanks for your insight. Currently, I run a Medicare Insurance website which the main source of leads for me. I'm thinking of doing a side project for an "in case of emergency, break glass" in case Medicare implodes (not likely, but who knows.)

I definitely think I can get the traffic for leads, I'm more concerned if the value is there for me off of just term. I'd be focusing on higher risk hobbies.

There are ton of people that build websites and sell mainly term.

Google any health condition and the word "life insurance" and the whole first page is going to be online insurance agencies.

 

[Travis Price]

There are ton of people that build websites and sell mainly term.

Google any health condition and the word "life insurance" and the whole first page is going to be online insurance agencies.

Hey Ray, I didn't say that wasn't the case. I don't sell term, so I wanted to know more about the commission layout and such.

However, thank you for your input.

 

[Life Hawk]

You can run as much as 100+% on term... however most street level will be less than that.

 

[Tahoe Ray]

You can run as much as 100+% on term... however most street level will be less than that.

Sure, but unless that company is Lincoln, you're probably not quoting the most competitive carriers if you're north of 100% on your term policies (or you're a large producer).

 

[Tahoe Ray]

Hey Ray, I didn't say that wasn't the case. I don't sell term, so I wanted to know more about the commission layout and such.

However, thank you for your input.

No worries.

My point was that there are a lot of people making bank on term only based on this:

Thanks, that's about what I found... It's a bit disappointing. I don't really want to sell FE. I wanted to do a simple term product, but the comm is kind of lackluster. I mean, premiums would need to be over 50 a month to get me excited.

The average term policy is something like 800/yr so 50 per month is very reasonable.

 

[billyb]

A local guy named Gary Paulzak in Ft. Walton Beach built an agency called TermProvider. They have about a dozen in house agents. I was once one and was an outside agent too when he allowed that. You might recognize his current ads using the character "Big Lou". They don't give a quote if the premium is less than $1000AP. I was in his office one day recently when one of his agents came in his office and asked him to make an exception on a smaller case and he said no. I have even tried to buy leads from the calls he turned away and he wasn't interested.

 

[Allen Trent]

Hey Ray, I didn't say that wasn't the case. I don't sell term, so I wanted to know more about the commission layout and such.

However, thank you for your input.

Travis. maybe try to partner up with a Traverse City area Farm Bureau insurance agent. While they are a captive agent & have lower base commission rates on life products, they many times will build bonus structures to pay their life sub agents much higher commissions because the agents PC renewals on their book of business get higher & higher the more life commissions & life policies they sell. Quality 5 year ART, 10/20/30 year term, term to 70, WL. Awesome SPWL & an IUL product. who knows, you may even bring them in leads for PC home/auto/farm/commercial & earns some money there. Maybe they would let you work their book for life insurance also to sell the Farm Bureau life products.

they don't sell final expense type products, so there would likely be no conflict of interest in your current sales, etc

 

[Travis Price]

Travis. maybe try to partner up with a Traverse City area Farm Bureau insurance agent. While they are a captive agent & have lower base commission rates on life products, they many times will build bonus structures to pay their life sub agents much higher commissions because the agents PC renewals on their book of business get higher & higher the more life commissions & life policies they sell. Quality 5 year ART, 10/20/30 year term, term to 70, WL. Awesome SPWL & an IUL product. who knows, you may even bring them in leads for PC home/auto/farm/commercial & earns some money there. Maybe they would let you work their book for life insurance also to sell the Farm Bureau life products.

they don't sell final expense type products, so there would likely be no conflict of interest in your current sales, etc

Hey Allen,

Thanks for your input. I appreciate the suggestion. That's not really my marketing plan though.

 

[rousemark]

Thanks, that's about what I found... It's a bit disappointing. I don't really want to sell FE. I wanted to do a simple term product, but the comm is kind of lackluster. I mean, premiums would need to be over 50 a month to get me excited.

Most term plans offer an opportunity for a second sell.. You make them a customer when you sell them the term and make them a client when you convert the term.. (for much more commission than you made on the term)