New Agent Needs Advice

[ShaunS]

I'm just starting out in this business and thankfully found this website. It is so helpful.
If I work Independently yet submit my business and get paid directly from an agency as a Sub broker, can I make more commissions because they have the higher volume contract with the carrier?
Is it typical to assign our commissions and have the agency pay us? I'm looking at a few companies to work with. Has anyone heard of Healthy America.biz?
Thanks!

 

[Frank Stastny]

I'm just starting out in this business and thankfully found this website. It is so helpful.
If I work Independently yet submit my business and get paid directly from an agency as a Sub broker, can I make more commissions because they have the higher volume contract with the carrier?
Is it typical to assign our commissions and have the agency pay us? I'm looking at a few companies to work with. Has anyone heard of Healthy America.biz?
Thanks!

No it is not typical for agents to assign their commissions. Most agents who assign their commissions end up getting screwed. If you assign your commissions then you are not the "agent of record". That means that every piece of business you write is owned, not by you, by the agency.

If you are assigning your commissions you are not an independent agent by my definition. I would be very surprised if you would make more in commission. In my experience you will make substantially less. Plus, if you leave that agency you walk out the door with a big far 0 for your renewals.

I would never advise an agent to go to work for an agency and assign their commissions. Not ever.

It would help if we knew what you want to sell.

If you'd like to give me a call I can explain why I feel so strongly about that. I can almost guarantee what they offer you will not be in your best interest.

 

[ShaunS]

I appreciate your help. I am in Florida, just got my 215 and plan to start in Health Insurance. Although, I don't really know how we will be affected by the new Obama plan. I have been reading this forum and realize that our commissions will probably dwindle down each year. So, will all the agents then sell P&C or Life Insurance?
The agency I was referring to (Healthy America) has a contract for 25% commission paid to the "sub broker" (that's what they call us) 1st yr and 5%, 3% (yrs 2&3) residuals from United Health One.
If I get my appointment directly from United they told me I'd get a reduced commission, and most agents make 20% tops.
I have not sold anything yet, need to learn the plans, and how to actually find a decent company that can help me while still being an Independent. I heard Health Choice One provides alot of support, and will look into them. If I am Independent, and get commissions directly from the Carriers, how does Health Choice One benefit from working with me/my business? Do they pay their agents directly, and if so, wouldn't that be like being captive too?
Also, what are the typical residual % that I should expect from each carrier?
Thanks!

 

[Frank Stastny]

I appreciate your help. I am in Florida, just got my 215 and plan to start in Health Insurance....

I'm afraid I am a "one trick pony". I really don't know much about Health Insurance. I'm strictly a Med Supp guy.

Healthagent, John, has a lot of knowledge and expertise in the health arena. He would be my first choice for information.

 

[2112Greg]

Frank speaks truth about assigning commissions. Don't do it.

 

[ShaunS]

So what is your advice on assigning commissions? Does your company require agents to assign their commissions to you in order to get extra months advances? Is there any other way to get advances and good quality leads without assigning commissions?

 

[1manshow]

No it is not typical for agents to assign their commissions. Most agents who assign their commissions end up getting screwed. If you assign your commissions then you are not the "agent of record". That means that every piece of business you write is owned, not by you, by the agency.

If you are assigning your commissions you are not an independent agent by my definition. I would be very surprised if you would make more in commission. In my experience you will make substantially less. Plus, if you leave that agency you walk out the door with a big far 0 for your renewals.

I'm afraid I am a "one trick pony". I really don't know much about Health Insurance. I'm strictly a Med Supp guy

FYI Frank, many carriers in my state will not give a direct contract to a newly licensed agent, maybe other states are different. Maybe instead of making such a bold, broad statement, you could preface it by saying "I am really knowledgable about med sups in XYZ state" And this is what I think. IMO, you are too well respected in this forum and people may take some things you say to be the "gospel"

 

[souldeux]

Yes, most life insurance companies will not allow an agent to to go direct without hundreds of thousands in production. That doesn't mean they need to assign their commissions, though.

You can contract through an IMO or FMO without assigning your commissions - in fact, I'd be reluctant to do it any other way. Yes, there are a few instances in which assignment is okay (angling for an advance, running comp through your agency), but in general if you don't want to assign you don't have to.

Here's the thing, though: it's not getting any easier to get advances. With the economy tanking like it is, two things are happening.

1. Investment performance for the big carriers is declining. That means less money in their pockets to pay advances.

2. Unemployment is up, and insurance sales has a low barrier to entry. Lots of new agents are coming in these days, and they all want advances. Carriers are getting pickier and pickier about when and how they'll dole them out.

If you absolutely, positively must have an advance then you will likely see yourself assigning a company or two - but not all. My strong recommendation is to go as-earned, taking advances only with companies offering it directly.

 

[Frank Stastny]

FYI Frank, many carriers in my state will not give a direct contract to a newly licensed agent, maybe other states are different. Maybe instead of making such a bold, broad statement, you could preface it by saying "I am really knowledgable about med sups in XYZ state" And this is what I think. IMO, you are too well respected in this forum and people may take some things you say to be the "gospel"

Your point is well taken. Maybe I didn't make mine clear.

I didn't intend my statement to refer to going or not going direct with an insurance company. I intended my response to be directed only to agents who sign a contract with an Insurance Agency where the agent is required to assign their commissions to the Insurance Agency.

If an agent goes through a marketing organization, IMO, FMO, because the insurance company no longer licenses agents direct they are in almost all cases licensed direct with the company through the IMO or FMO. They are not required to assign their commissions.

I'm sorry if I have missed the meaning of your post.

 

[keeptruckin]

This is a repeat I placed a question in an area that was not quite on my subject of my question. So again my question I am new and have a license to sell Life , Health and Variable Annuitys for AFLAC and I know from what I read they tend to oversaturate markets with agents . I am willing to work hard and am a novice in this field but do have prior sales thru out my life in various areas. I am living off of unemployment and others help thru relatives etc and am barely making it. I need to know how the commisions work as far as getting paid in first month. Assuming I sell something hopefully. I haven't signed a contract and have seen the percentages they will pay and they seem reasonable and it seems that a majority percentage is paid up front and the rest split between 12 months.
I am unsure the length of time it will take to recieve a check so I can start paying some bills or eat some food other than beans. I am in SW Florida.. I thank anyone who advises me and I am sorry if I broke a rule already by repeating ..