None of my business question ?

[tikibarrister]

You just always want to remember that companies consider the 1st 2-years of annual premium (200%) is the cost of getting the policies sold. Most of that goes out in commissions to agents/managers. But some goes to other sales costs.

Isn't some of the IMO's cut also used to cover unpaid chargebacks that roll up to the IMO?

 

[WinoBlues]

Isn't some of the IMO's cut also used to cover unpaid chargebacks that roll up to the IMO?

I get that the companies use the IMOs to insulate themselves and IMOs use downline recruiters for the same.

However, how do I have anything to do with that?

 

[Newby]

Isn't some of the IMO's cut also used to cover unpaid chargebacks that roll up to the IMO?

Yes I didn't name every expense. I just named the things that are of benefit to the agents. But there are other huge expenses that IMOs pay out of their over rides. Bad agent debt is a huge one. As well as staff salaries. Building expenses. Conventions (for those of us that have conventions) licensing in all states, legal fees, and even potentially lawsuits. Then there are unknowns like Virus's. I ate at least $100,000 on wasted direct mail leads during the virus.

IMO's make a lot of money. And they have a lot of overhead and risk. It all works out.

 

[Life Hawk]

Isn't some of the IMO's cut also used to cover unpaid chargebacks that roll up to the IMO?

No most of it goes to purchase coffee, doughnuts, tums, antidepressants, and Jack Daniels.

 

[Newby]

Depends on if your imo has the highest contract for the carrier. I'd say average is maybe 140-150 ? Maybe some others can chime in.

Most of the mid packers are 150% but certain ones go as high as 165%. Unfortunately our (FexContracting) agents tend to sell the carriers that offer the client a better deal so we don't do much volume with the highest priced/commissioned ones.

 

[WinoBlues]

this forum and a handful of agents willing to share really meant a lot.

This forum and the majority of the members really is an ongoing course in this business.

Just look at this thread. A new agent is not going to get this info from just any uplines. All they will get is 'don't worry about what anyone above you makes, go sell'.

I have learned from a lot of the threads.

 

[Life Hawk]

I have learned from a lot of the threads.

"That!"

The forum has a way of separating those who "say they want to learn" and those who "want to learn".

I'm glad that I stumbled on here. As an Indy it can get lonely and you tend to get stuck in ruts that are not profitable. This place allows you to see (if you do your home work) different perspectives and makes you take a good long honest look at your own.

The drama and humor along the way make for a good reason to keep a bowl of popcorn handy.

 

[Thedude]

So to answer OPs question, most IMOs are getting anywhere from 20-50 points on the production if you don't have someone in the middle.

 

[titeye]

I get paid directly by a few companies such as SNL and United Heritage. I rarely call an up line for anything.

You took the words right out of my mouth!!!

 

[FETalk]

You just always want to remember that companies consider the 1st 2-years of annual premium (200%) is the cost of getting the policies sold. Most of that goes out in commissions to agents/managers. But some goes to other sales costs.

The commissions posted on the FexContracting website are fair commission levels for new agents who work independently and pay for their own leads. It allows agents who work effectively to make good money and allows the Upline (FexContracting) enough margin to provide quality training to the agents, set cost direct mail for the agents, free quoting software to the agents, and the latest greatest underwriting web based underwriting program for the agents (replaces the old fashioned cheet sheets and spreadsheets). So there is enough margin at those levels for the Upline to provide what agents need plus still make a profit for the agent and Upline.

So rather than worry what others are making, you should be more aware that you are getting your fair starting commission if you are a new agent. If you are getting more than those levels you are above average. If you are getting less you are below. If you are getting substantially less you should be making a move.

But the IMOs are making plenty of money. You don't need to worry about them.

This is true, but I think that agents should also pay close attention to what they're receiving on the back end as well. Unfortunately, a lot of times focus/emphasis is placed solely on the front end commissions, and oftentimes agents end up getting "jerked" on their renewals.