Posting Commission Schedules On Website?

Jul 12, 2018

  1. zwcoop
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    zwcoop Expert

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    I had the idea of posting the commission schedules of the carriers that I'm appointed with on my website for transparency ... does anyone know if this is compliant. Intuitively, I would feel like carriers would frown upon this. What if is wasn't actually the official commission schedule but rather a summary of some kind?
     
    zwcoop, Jul 12, 2018
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  2. myinsurebiz
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    myinsurebiz Guru

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    sure and post here too . . .
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    As far as I know, unless you're in New York, disclosing commissions isn't required. However, you are obviously free to do so.

    I would just do it on an individual case basis.
     
    DHK, Jul 12, 2018
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  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    One distinction to add though: Most people believe that commissions come out of their products as a fee or charge - like with AUM or mutual funds, etc.

    Insurance isn't like that, even though we know there are often surrender charge schedules to help recapture acquisition expenses for selling annuities before the surrender charge schedule expires.

    So, if you're going to disclose commissions, make sure you also disclose that it's paid by the insurance company, NOT their product.

    How to explain annuity surrender charges to avoid complaints | ThinkAdvisor
     
    DHK, Jul 12, 2018
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  5. zwcoop
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    zwcoop Expert

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    I know the clients aren't paying the commissions directly but I'm starting to realize just how big of a range there is in commissions across providers. It was just a thought about being transparent.

    The next thought I had was that even if I did, people would never be able to figure it out ... ha!
     
    zwcoop, Jul 12, 2018
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  6. Life Hawk
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    I think the best approach is to be transparent when one on one with the client. Too often we confuse professionalism and being real. Folks like to know that their "guy" is real and approachable.

    Often I use the phrase... "And this is how I feed my kids." or "This is how I pay my bills."

    They know you make money from what you do... telling them how much doesn't build trust, it just provides more information... work on building trust during the relationship building time.

    Some thoughts... I do like your honesty. :yes:
     
  7. leevena
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    leevena Guru

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    Personally, I would not post them on a public website. If you want to be transparent with your clients/prospects, do so in private with them. By posting them in public you risk an issue with your carrier partners.
     
    leevena, Jul 13, 2018
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  8. goillini52
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    goillini52 BUILD THAT WALL!!!

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    I can only think of 2-3 times I've had anyone mention anything about the way I get paid, and they were already clients. I was helping them with a claim and they wanted to pay me for my time. I told them that I get paid every time they pay their premium.
     
  9. Web320
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    Web320 Expert

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    Personally, I think you are inviting unnecessary questions and conversation surrounding something that isn't relevant to the product or service provided.

    Looking at it from a buyers perspective, knowing the exact amount a seller is poised to make on a sale adds an entirely new layer to the sales cycle.
     
    Web320, Jul 13, 2018
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  10. Life Hawk
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    Not really another layer... just more confusion.
     
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