New Agent Commission

Jun 17, 2019

  1. Johkra87
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    Johkra87 New Member

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    Hey,

    First time poster.

    I am a newly licensed broker. I got licensed in 01/2019. For 11 States Health & Life.

    I just wanted to get an opinion on a proposed contract and hear some opinions on whether or not it’s a good deal.

    The company pays for all the overhead, leads, appt setter, computers, internet, CRM, training, license fees, etc.

    I just take appts and close. I average around 35-40 appts a week. And close 30-40%

    I work for a Independent Brokerage. Other than the owner I am the only Producer. I started as a Salary+Comm. Structure. Now I have been offered a smaller base $15k a year salary, plus %2 of all 1st year commissions from my Health sales (Health Sharing products, Traditional, and Supp.) plus %10 of all of the Life Sales.

    I am on track to sell around $1.5-2M of annualized Health Premiums (all products combined)

    I just started selling Life last month but can do around $8k annualized premium (monthly)

    I just want to see if this is a square deal and should be grateful or maybe push back and see about some adjustments.

    Thanks
     
    Johkra87, Jun 17, 2019
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  2. Newby
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    Newby Guru

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    If you already know how to produce you should take ZERO salary. Then your life commissions will go to an average of 110% plus renewals and your Medicare will go to an average of 21%.

    Salaries cost you WAY too much money.
     
    Newby, Jun 17, 2019
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  3. Johkra87
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    Johkra87 New Member

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    That’s non negotiable. It’s company policy to have W-2 producers and that they earn some salary.

    With the agency paying for all the overhead I know I won’t get the “normal” 110% if I was solo.

    But what is a good middle ground?

    If I am not already getting that...
     
    Johkra87, Jun 17, 2019
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  4. Rob Lion
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    Rob Lion Guru

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    At the end of the day you wouldn't be doing those numbers without his leads
     
    Rob Lion, Jun 17, 2019
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  5. Newby
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    Newby Guru

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    Well 2% of $2,000,000 is $40,000. So 3% would get you $60,000 and 4% would be $80,000.

    If you are a Hugh producing agent who is willing to work captive you are a hot commodity. You are not easy to replace. So tell him what you need to be happy there and start from that.
     
    Newby, Jun 18, 2019
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  6. Chazm
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    Chazm Guru

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    Sounds like you are on track to make about $65k. Correct?
    Doesn’t seem bad considering he’s finding everyone for you. The other “overhead” is just crap. The only thing that’s worth anything is the leads and the appt setting.

    Let’s be honest. He’ll have to make $100k on his own to really be at $65k. You’d be surprised how many head don’t bring in 100k
     
    Chazm, Jun 18, 2019
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