Ohio national contracting

[ProsperSBC]

I'm in Wisconsin
can produce 40-50k of life premium first year.
1 million of VA Premium.

I would like to get some input as to contracting options with Ohio National, I have met with a GA but was left wondering why I couldn't just be a GA with them, I have two other associates that would come as well. Any feedback would be appreciated.

Thanks!

 

[DHK]

Depends on your state. Wisconsin is a Career Contract state with Ohio National.

As a personal note, if you were interviewing with Art Sanger in Wisconsin... I would be looking VERY closely more at the PROCESSES he uses to prospect and make sales.

Art Sanger was a national LEAP trainer and also uses the Cotton Client Acquisition System. The combination of these two (I think) is unstoppable.

So, I wouldn't be thinking about what you can do NOW... but what and how he could help develop your skills with the proper coaching and tools.

Then, after being with his agency for a while, move to a PGA state to get your own GA contract and keep doing what he taught you.

So I wouldn't dismiss the idea of being a career agent, if this is the agency you were interviewing. Since the website shows a lot of career agents throughout the area, I'm pretty sure it's the same agency.

 

[VolAgent]

I'm in Wisconsin

That is your answer. Wisconsin is a career state. In fact, isn't that huge GA there, Sanger or something? He is a huge proponent of LEAP.

 

[DHK]

Here it is: History | Wisconsin Financial Group, Inc.

 

[Larry Tew]

I 200% agree with the Cotton System, and was a LEAP user from the early 90s. I made a system switch in 2006. The jury is still out on where LEAP is going, given that Penn Mutual made a "substantial investment" in the program.

But everyone is correct... you will not be getting a PGA contract in Wisconsin.

 

[ProsperSBC]

Thanks for the imput, What type of payout should I expect to be offered? I was told 50% with no office expenses on the life side with incentives that would bring it up to around 85%

What would the differences in payout be from a producer (brokerage contract under the GA) vs. Career agent, along with production requirements for incentives? I ordered the pack off the website which did not include the info, after speaking with the GA, I'm still left in the dark but he said he would email me some stuff????

 

[DHK]

Personally, I think you're asking the wrong questions.

By your own post, you say you can bring in $40k-$50k in life premiums and $1 million in VA premiums.

$50k @ 50% life payout = $25,000 life income
$1 million VA @ 3.5% (no B/D grid) = $35,000 (approx. net to you).

That's $60,000 of annual income at the career agency.

If you were independent, let's look at the numbers:
$50,000 x 85% = $42,500 life income
$1 million @ 7% VA payout = $70,000 of variable life income

Total: $112,500


I would predict, that even with these payout numbers, if you're coachable (that's the big key here), that Art Sanger could help you double those numbers in your first year and help you do it with more time off and peace of mind.

The reason you pick a career agency is for the training and infrastructure. If you don't need that, don't join a career agency.

If I were in Wisconsin, I'd pick them, put my ego aside and get to work.

 

[VolAgent]

For give me for piling on, but this sort of got me when I read it.

...I have met with a GA but was left wondering why I couldn't just be a GA with them...

Your numbers really aren't all that impressive. It is no where near enough to justify being a GA in a traditional GA system.

I don't know Art to save my life, but I did see him present an overview of LEAP versus Don and COW. While I like COW better, I have to believe Art is very passionate about insurance and his system. They consistently put up big numbers and I have to believe they will help anyone succeed who is coachable and will put in the effort.

If I were in your situation I think I'd follow DHK's advice and go whole hog on it. Then once you are putting up some real numbers, see if you can become a sales manager in his agency.

 

[Larry Tew]

You "can" get a broker contract through The Wisconsin Agency, but I can't think of a single reason you would want to. I'm not familiar with ON's career contract, but I guarantee you that by the time you take the smaller commission and add the benefits to it, you will be pretty close to the PGA payout if not a little better at the production levels you mentioned.

And you will get the benefit of some pretty good mentoring.

 

[Golfnut2112]

You "can" get a broker contract through The Wisconsin Agency, but I can't think of a single reason you would want to. I'm not familiar with ON's career contract, but I guarantee you that by the time you take the smaller commission and add the benefits to it, you will be pretty close to the PGA payout if not a little better at the production levels you mentioned.

And you will get the benefit of some pretty good mentoring.

Your right I have a career contract in my state and I get

60% base plus another 25% of that, a production bonus which at his level would be 32% of the base level commission. You add in some FICA and a 3% 401k match its not to bad. The worst part for me is all my mail goes thru the GA office which is 30 miles away. I opened my office in 1991 and never got used to the idea of my mail going elsewhere but the GA is cool and does his very best to accommodate me.