Newbie Needs Guidance! Advice Greatly Appreciated

Aug 8, 2019

?

Am I being taken advantage of?

  1. Yes

    75.0%
  2. No

    0 vote(s)
    0.0%
  3. Probably, but wait to see

    25.0%
  4. Probably not

    0 vote(s)
    0.0%
  1. need_insight
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    need_insight New Member

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    State:
    Indiana
    Firstly I'd like to thank anyone that answers any of my questions. Any nugget of advice is greatly appreciated.

    So I'm 18 years old and super excited to break into this industry probably for all the same reasons you initially were. But the trouble is I have no idea what I'm doing or where I'm going. And worse yet I fear I may be being taken advantage of.

    I have no experience in insurance and only just got my life & health license right after graduating H.S.. I've been trying to get a job interview for a while but with no luck. I fear I'm looking in the wrong places. But finally I got one today and was very excited. Throughout the course of the interview my gut began to rumble. I wasn't sure what it was telling me but after I cooled off from the excitement I came to the realization that I wasn't selling myself but it seemed that I was being sold. So I looked the company up (an FMO) and many people accuse the company of low commissions, shady contract clauses, no lead generation (cold calls only), and generally being an mlm. They haven't offered me a position yet, and I was so eager that it doesn't make sense to me why he would talk about all the benefits of the job so much when I was practically sold from the jump. I believe he's trying to play it like he's going slow and not pressuring me into the position. Additionally I met him through the restaurant I work at and he comes in regularly to the bar where he's recruited 2 other coworkers. Am I paranoid for thinking the "bar rat" thing is a ploy or is it observant? I have a couple questions and statements prepared for my next interview to see how jumpy they are about making me sign then and there (if they do).

    I also want to know what kinds of sales jobs I can get without experience and ideally part time (if possible) bc I am in college as well. If I can reasonably get a better job then I will begin looking that way, but I figure that if it's unlikely then I might as well get some experience in sales and insurance and make money (even if less than industry standard).

    What kinds of commissions are reasonable in my position (no experience) and what kinds are a sign I'm being ripped off? Also the position we discussed was Medicare advantage (during enrollment) so what types of commission should I want to see there?

    Basically I'm asking what is reasonable behavior of a recruiter doing his job and whereabout the commissions would be reasonable for my experience and part time status versus what should make me run for the hills? And if this is bad, will I have to put up with this treatment no matter where I go? And if not then where should I look?

    Do I just have to put up with my lumps until I get experience? Or am I being treated totally normal?

    Seriously though, any help is appreciated more than you could ever imagine.
     
  2. Travis Price
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    Travis Price Guru

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    State:
    Michigan
    So, without knowing your commission rates, there's no way to know if he's undercutting you. Here are some basic numbers you should know:

    Medicare Supplements- Really depends on the state and carrier.

    For example, Lumico in MI pays 28% year 1-3, 5% 4-6, 3.5% 7-10
    In Indiana, they pay 23% 1-6 only.

    Medicare Advantage is also state-based, but most states are $510 first year on MA, $255 renewal (for 2019, the commission changes every year)

    For Term, you should be seeing around 70-80% of the premium first year

    Whole Life
    Guarantee Issue 70-80% First year/0-5% renewal
    Underwritten anywhere from 100-120% year 1/5-7% renewal.

    Here are some questions I would ask of you:
    Do you have money for marketing? You'll need that to get started. Part-time you need 10-20 leads per week. You won't see your first commission check until about 60 days after you start.

    What do YOU want to sell? Don't sell Medicare Advantage because someone else tells you to... do some research and figure out YOUR market.
     
  3. goillini52
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    goillini52 KeepAmericaGreat...Eat Bacon & BUILD THAT WALL!!!

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    State:
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    The FMO that interviewed you, would probably hire anybody that breathes.

    Give Todd a call. :yes:

    https://insurance-forums.com/community/members/todd-king.3501/
     
  4. DHK
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    DHK Guru

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    State:
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    Just want to show you that you CAN do well. (I admit that I think there could be an 'age-bias' against you.)

     
    DHK, Aug 8, 2019
    #4
  5. Travis Price
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    Travis Price Guru

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    State:
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    Another good choice, if you want to do life is DigitalBGA.

    I started working with them for FE to build a Medigap pipeline. They are RIDICULOUSLY hands on for new agents, while still doing street level contracts.
     
  6. need_insight
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    need_insight New Member

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    State:
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    Thanks for the info. Would that MA commission be max? Or what's expected for no experience and part time?

    Also he said the company would handle marketing and they had agreements with retail locations who will do the marketing and we will be placed in the retail location. Is that good or bad?
     
  7. need_insight
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    need_insight New Member

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    State:
    Indiana
  8. need_insight
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    need_insight New Member

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    State:
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    Ok thanks for the recommendation, I'll definitely follow it up.
     
  9. need_insight
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    need_insight New Member

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    State:
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    Awesome, I'll definitely subscribe. And I hope I can be saying similar things in 3.5 years as well. Thanks
     
  10. myinsurebiz
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    myinsurebiz Guru

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    State:
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    Those ( $510 / $255 ) are for 1/1/20 > effective policies . . .

    Some Term contracts are more than that street . . .

    Can get contracted in a week and paid just a few days after the policy issues and pays . . .
     
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