Street Level Commission
- Thread starter JimmyUt
- Start date
- 3,165
I have a better question, at least to me....what exactly does "street level" mean??
In a nutshell, it is the company approved advertised commission schedule with no prior production proof or commitment from the agent to the company.
It is a point that can be negotiated by people with their IMO. So, with production, you should be able to get higher than street.
Some carriers do not have a Street Level and that is up to the IMO.
Example 1: Transamerica/MonLife is widely thought that Street is 115% for FE. Not so. That is a widely accepted Street level and is not mandated by the company.
Example 2: Where as Americo's Street level is published at 115% for FE, though many IMO's use 100% since there is not a level between 100 and 115 for FE.
It really comes down to the IMO and what they feel they are comfortable in giving out. Most IMO's need a cushion to pay for Bad Debt from agents (15%) is usually a minimum from what they get and what the max agent contract they will give a productive agent. Now you may negotiate a higher amount as an AS EARNED agent whereby the risk to an IMO is much smaller and for big producers or MGA'S they will take less spread, especially if they are AS EARNED.
It is a point that can be negotiated by people with their IMO. So, with production, you should be able to get higher than street.
Some carriers do not have a Street Level and that is up to the IMO.
Example 1: Transamerica/MonLife is widely thought that Street is 115% for FE. Not so. That is a widely accepted Street level and is not mandated by the company.
Example 2: Where as Americo's Street level is published at 115% for FE, though many IMO's use 100% since there is not a level between 100 and 115 for FE.
It really comes down to the IMO and what they feel they are comfortable in giving out. Most IMO's need a cushion to pay for Bad Debt from agents (15%) is usually a minimum from what they get and what the max agent contract they will give a productive agent. Now you may negotiate a higher amount as an AS EARNED agent whereby the risk to an IMO is much smaller and for big producers or MGA'S they will take less spread, especially if they are AS EARNED.
- 3,165
Thanks Patrick... I'm still learning.
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- 438
What's to be expected with those companies with proof of production and all as earned commission?
Probably a higher commission. Depends on the proof of production.
