Settlers Leaders

[shonceman]

Using a price buster does not mean you are just giving up commission because the company pays a lower rate (if that be the case), you also loose commission because the decreased premium. Assume both pay the same 110% commission rate, price buster premium $50, other company $60... The PB pays $132 less first year commission. . If you have 80% persitency on the higher priced company, you make $633... You have to have 96% persistency on the PB to make the same money.. Don't think that is going to happen. If the PB pays 10% less commission than the other, then your persistency would have to be 100%+ to pay what the high plan pays with 80% persistency.

Don't hit me with math logic this early in the morning!!! .....oh, wait.....it's afternoon.....
OK....Just don't hit me with math EVER. I can't keep up. I went to public school!!!

 

[rousemark]

Don't hit me with math logic this early in the morning!!! .....oh, wait.....it's afternoon.....
OK....Just don't hit me with math EVER. I can't keep up. I went to public school!!!

The only way you come out ahead with the price busters is if you make enough additional sales that you would not have gotten with your other carrier to make up the loss in commission. And, so far we have considered only first year commission.. Most of the PB companies seem to have lower renewal rates than higher priced companies so you have to sell enough to covered that also.

 

[Mattschmidt]

The only way you come out ahead with the price busters is if you make enough additional sales that you would not have gotten with your other carrier to make up the loss in commission. And, so far we have considered only first year commission.. Most of the PB companies seem to have lower renewal rates than higher priced companies so you have to sell enough to covered that also.

You know @myinsurebiz is gonna come along and tell you that you're wrong any minute now

 

[Rirwin]

I know of an agent that led with a price buster carrier that resulted him being on welfare.

 

[rousemark]

I know of an agent that led with a price buster carrier that resulted him being on welfare.

Just can;t give him a break, can you?

 

[Life Hawk]

The only way you come out ahead with the price busters is if you make enough additional sales that you would not have gotten with your other carrier to make up the loss in commission. And, so far we have considered only first year commission.. Most of the PB companies seem to have lower renewal rates than higher priced companies so you have to sell enough to covered that also.

It's all about volume at that point...

 

[Rirwin]

Just can;t give him a break, can you?

Do you think he deserves a break?

 

[Todd King]

Do you think he deserves a break?

Whether he does or doesn't, it has gotten old.

 

[Life Hawk]

Whether he does or doesn't, it has gotten old.

Once was in a heated public meeting with a board who had upset some of citizens... one old farmer got up and said to the young folks on the board... people are like elephants sometimes... they never forget.

 

[shonceman]

The only way you come out ahead with the price busters is if you make enough additional sales that you would not have gotten with your other carrier to make up the loss in commission. And, so far we have considered only first year commission.. Most of the PB companies seem to have lower renewal rates than higher priced companies so you have to sell enough to covered that also.

I was just making a joke. I get the point. You've got to sell more price buster policies to stay even with higher priced, but also higher commission policies.

I mostly don't worry about it. The companies I use most are competitive, but also pay me enough to make it worth my time and effort. I rarely replace, so having a price buster isn't nearly as important for me.

To the original topic - Settlers used to be a little on the high side, but still generally competitive. They didn't pay as much on FYC as others, but renewals were much better, so I liked writing them when they fit the client. I'm still under the same contract, so I'll still write them when it's a good fit. But lately it just doesn't seem to be a good fit nearly as often.