Newbie in the Life Ins Business

Discussion in 'Life Insurance Forum' started by hayyojo, Jul 8, 2017.

  1. hayyojo
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    hayyojo New Member

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    I am just getting started and wanted to see what the average commission rates are as I was told when you first get started with an agency its about 20% and takes several years to increase. Please share what companies you are with and the commission rates and how easy or hard it is to increase the commission rates. Thank you for all your help!

    Not sure if it matters I am in Az.
     
  2. DHK
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    DHK Well-Known Member

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    The only places I've heard that start remotely that low... are the MLM insurance companies. They generally start out at about 25%, and by recruiting others and personal production, you can increase that to about 80% at the top end.

    Insurance career agencies (New York Life, MassMutual, and others) are about 55% on the commissionable part of the premium.

    Independent contracts often are about 80% - 120% depending on company, product, contract, etc.

    20% sounds awfully low (generally speaking) without knowing more details about the product and company.
     
  3. jboussea
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    jboussea Well-Known Member

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    Could also be a call center.. like a select quote and intelli quote.. in that case it might be worth it since they get you all the leads and you're just on the phone selling.
     
  4. hayyojo
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    hayyojo New Member

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    I think I figured it out. The company I am with is a MLM and I guess other MLM's start at 20% but we start at 30% and can grow quickly. My broker got to 70% in just 67 days. I thought they were talking about working with agencies not other MLM companies. With our company you can get all the way up to 130% commission is paid up front for the entire year of the policy. So if the policy is $50 a month x 12= $600 x % is what you get for the commission.

    I guess many agents are leaving agencies to go to MLM because they can make more by building a team. This is just what I have heard from other agents in my office that were with agencies before.

    I am still learning!
     
  5. jdeasy
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    jdeasy Well-Known Member

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    Right now you're just drinking kool aid. The learning will set in if you fall for that garbage.
     
  6. Norwayguy
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    Norwayguy Well-Known Member

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    Question to ask yourself why do you have to convince people to take a 20-30% commission when they could get 100-130% depending on carrier without all the MLM recruiting?
     
  7. johndf
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    johndf Well-Known Member

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    If someone offers you only 20% commission to sell life thru them, turn around and run away as fast as you can.

    Didn't WC Fields say "There's a sucker born every minute"
     
  8. RimInsuranceGrp
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    RimInsuranceGrp New Member

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    One thing to consider too depending on which company you went with is if your commission are being paid out to you directly from the carrier or does it go through the company and then disbursed to you.

    I also am with a company that is considered mlm through the tier structure but we all work together as a family not by teams and we all start off at 55%.

     
  9. pfg1
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    pfg1 Well-Known Member

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    More like the MLM agents are running to become indy agents.

    Not to knock all MLM gigs,,,, but man 20% is super low. Probably have to buy a policy from your upline too.
     
  10. eersfan
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    eersfan Well-Known Member

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    Now that you are licensed, find an independent agent who is willing to train you. The commission you earn there will be significantly higher than what you're going to earn with the MLM route.
     

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