Northwestern Salary and Success Rate

[autoinsurance1]

Welcome to the forum! enjoy your stay here.

 

[CHUMPS FROM OXFORD]

Where do we dig up these guys?

 

[xrac]

===

lyndell, with respect, I'm going to take the time to help a bit because I think this industry has enough people who are in it for the wrong reasons, and they're damaging an already bad reputation. So here's a few thoughts:

1. This may be the worst business on the planet for people who need money right away. We're dealing with people's lives, security, families and legacies here, and I can guarantee that your need for cash will make you do things that are best only for you, not for them. Plus, nothing in this business happens overnight.

2. If you're going to do this, start with a strong company and get good training in products, administration, laws, sales & marketing techniques. Northwestern Mutual, New York Life, Mass Mutual, Guardian and Met Life are generally considered the best. The local manager is key, however, because he or she sets the environment and strongly influences your chances of success.

3. If the company you like doesn't pay enough of a base salary for you (and probably none will), then I'd recommend getting another job and saving up at least one year of income. Again, the last thing this industry needs is yet another desperate "salesman" trying to squeeze out the last dollar from a prospect because they need to make their car payment.

4. If you can't generate your own leads in this business, you will be gone within a year. If you're looking at working for a company like Northwestern Mutual, depending on internet leads and other leads that you didn't create will not work. They may work for individual health insurance or basic term life (which is great), but not in a more sophisticated environment like this. You need to be involved in groups like Rotary or Sertoma, you need to be active in your community and trusted. Read Jay Conrad Levinson's "Guerilla Marketing". I'm not slamming health or term - but for NWM clientele, you need to be conversant in areas such as estate planning and wealth creation/preservation.

For your sake, for the sake of the people you'll be selling to, and for the sake of the industry, don't enter this profession because you want to clean up. If that's your reason, it's not going to work. Those people get flushed out pretty quickly, but they do terrible damage before they go.

You will make it if (a) you have money set aside to live on for at least a year, (b) you get well-trained and self-disciplined, (c) you are willing to commit to a strict plan of action and code of conduct, (d) you are able to understand that putting the needs of your clients before yours will ultimately lead to your long term success. In other words, "what goes around comes around."

I hope this helps. Good luck.

...

Great post and very good information for any newby or wantabe!

 

[CFP83]

===

lyndell, with respect, I'm going to take the time to help a bit because I think this industry has enough people who are in it for the wrong reasons, and they're damaging an already bad reputation. So here's a few thoughts:

1. This may be the worst business on the planet for people who need money right away. We're dealing with people's lives, security, families and legacies here, and I can guarantee that your need for cash will make you do things that are best only for you, not for them. Plus, nothing in this business happens overnight.

2. If you're going to do this, start with a strong company and get good training in products, administration, laws, sales & marketing techniques. Northwestern Mutual, New York Life, Mass Mutual, Guardian and Met Life are generally considered the best. The local manager is key, however, because he or she sets the environment and strongly influences your chances of success.

3. If the company you like doesn't pay enough of a base salary for you (and probably none will), then I'd recommend getting another job and saving up at least one year of income. Again, the last thing this industry needs is yet another desperate "salesman" trying to squeeze out the last dollar from a prospect because they need to make their car payment.

4. If you can't generate your own leads in this business, you will be gone within a year. If you're looking at working for a company like Northwestern Mutual, depending on internet leads and other leads that you didn't create will not work. They may work for individual health insurance or basic term life (which is great), but not in a more sophisticated environment like this. You need to be involved in groups like Rotary or Sertoma, you need to be active in your community and trusted. Read Jay Conrad Levinson's "Guerilla Marketing". I'm not slamming health or term - but for NWM clientele, you need to be conversant in areas such as estate planning and wealth creation/preservation.

For your sake, for the sake of the people you'll be selling to, and for the sake of the industry, don't enter this profession because you want to clean up. If that's your reason, it's not going to work. Those people get flushed out pretty quickly, but they do terrible damage before they go.

You will make it if (a) you have money set aside to live on for at least a year, (b) you get well-trained and self-disciplined, (c) you are willing to commit to a strict plan of action and code of conduct, (d) you are able to understand that putting the needs of your clients before yours will ultimately lead to your long term success. In other words, "what goes around comes around."

I hope this helps. Good luck.

...

.......excellent post

 

[NMFNMDRT]

CFP83,

You at least stayed the full 5 to get your vested renewals, correct?

I've been with Northwestern now for almost 4 years, and I really do like their system. I have no aspirations to be a manager, but there are other bonuses besides the "new client." I did get that one this year, but you can get up to an additional 20% on commissions with things like staff comp., 100 lives+/year, persistency, MDRT, Forum, etc. There are quite a few people making 70%..up from the 50% standard. That may have changed since you left.

Lyndell,

If you go with Northwestern just focus on your Pacesetter. Don't worry about making a certain amount for your first six months. You are learning a new career, so do a ton of joint work. My first year in the business I made $35k. My friend just finished his first year and made just over $100k...joint work COLI case. Anyway, good luck!

 

[CFP83]

CFP83,

You at least stayed the full 5 to get your vested renewals, correct?

I've been with Northwestern now for almost 4 years, and I really do like their system. I have no aspirations to be a manager, but there are other bonuses besides the "new client." I did get that one this year, but you can get up to an additional 20% on commissions with things like staff comp., 100 lives+/year, persistency, MDRT, Forum, etc. There are quite a few people making 70%..up from the 50% standard. That may have changed since you left.

I left Northwestern Mutual earlier this year, the compensation struction is exactly the same. As a matter of fact, NML's FR contract has stayed almost exactly the same over the past 20 years. I had the opportunity to be a speaker at the "friendship lunch" as well as to speak with several agencies down south about maximizing the FR contract. I understand the FR comp structure inside and out.

To be FULLY vested in your renewals at NML, you have to be there 15 years. The vesting schedule STARTS at year five, meaning that if you leave after 4 years and 11 months you get zero renewals. I left with about 15% of my renewals after 5 1/2 years.

In regards to bonus's and compensation, there is not a production bonus or true enhanced commission rate in the entire NML system for life insurance production (there is for DI, LTC, and annuities)....meaning there is not a bonus that gives you an enhanced first year commission rate based upon excellent premium or commission production. The new client bonus is not a life "production bonus", it is a bonus based upon attaining new clients, not high levels of premium or commission production.

This is where NML is unlike any company out there: Say a producer that does $750,000 of life annualized premium on 24 new clients in his 9th year....this producer gets ZERO production incentive/bonus from the company. At the other major mutuals, a producer like this is making probably 25-30 points higher payout than the 50k yr premium producers. NML gives full discretion to the General Agents on giving a larger producer a higher payout. So as you mentioned NMFNMDRT, if a General Agent decides to throw his boys a bone for certain things like writing 100 lives or making MDRT, that is totally all on the GA's shoulders. The company itself doesn't provide the big producer a thing, and that's a big deal.

The QI/persistancy bonus DOES NOT affect your overall first year commission rate, it enhances your RENEWAL commission rate...so it's not a production bonus.

So all other "incentives" you can earn at NML come from your GA's (managing partners) own pocket....MDRT, 100 lives, Forum, ect. Take for a second the expense allowance, which tops out around 20% of fyc. The first point here is this is a pathetic expense allowance for a big producer. 20% of fyc only comes out to be a 10% premium expense allowance....taking your average payout from 50% to 60% of annualized premium. Now, factor in the impact of your New Client Bonus and your up to around 63%. Factor in soc security matching, e&o match from the home office, retirement plan contributions it takes you to a total "real first year commission rate" of about 68%. Finally, this Forum bonus (around 400k of premium per year for all non NML guys out there) you speak of is obviously something your GA does in his agency...and great for him by the way! The company does not pay any production bonus for Forum qualification.

So why is it that I think NML's production bonus's and overall payout among the worst in the industry? It's very simple, as a company's stance regarding production from producers in my mind should be "Produce more, Get more". Treating everyone "pratically" the same regardless of production is insane and socialistic...and a perfect recipe to have all your largest producers go elsewhere just as NML has struggled with in the past 10 years. A great football coach of mine once told me "Equal treatment is not fair.....and fair treatment is not equal". Should a coach give as much time and attention to his 3rd string quarterback as he does his star QB? absolutely not. At NML you cannot get a higher fyc rate if your produce 1,000,000 of premium a year than a guy who produces 100,000 a year.

One last point and another piece of knowledge for you, seeing how your MDRT qualification is very important to you-as it is to me as well....in 2008, for the fifth year in a row last year, not one "Top 50" MDRT producer was from Northwestern Mutual. Your obviously and intelligent as well as a very hardworking guy to achieve the level of production you have in only fours years. At some point, you will begin to ask yourself some questions.... "why are the biggest and the best producers in the nation NOT with NML?" "If the company does indeed have a great FR contract then why are over 90% of the new reps either college students or career changers? Why aren't intellegent, established big producers Leaving NYL, Guardian, Mass and coming to NML? These are all questions I found myself pondering after about 4 years or so NMFNMDRT, and they are questions that my management team had absolutely no answer for as well.

Best wishes for a great 2010!