The Truth About Medicare Supplement Commisions..

[YouGotMyMoney]

how about 18 mo adv?

 

[Chazm]

Rookie question here but is this how MS commission works:

-You sell a policy, get $300 (12 month advance) upfront.
-On month 13 you would get $25 (assuming the client renewed)

Do you continue to get the $25 every month there after?

I guess this sounds too good to be true because let's say you sell 100 MS plans in 1 year, that would earn you $30,000. Not a ton of money...but when all those plans reach month 13 they start paying you $25 each per month? So that means your renewal income is also $30,000 per year...

Is this right?

Correct. I just started hitting renewals a few months ago so my renewals are only a few hundred but I can't wait until this Dec into Jan, my renewals are going (should) jump way up. I'm really excited but impatient at the same time...need more money

Here's an example. In FL I get paid ~$220 for a Plan F Med Supp with UHC. They pay you 9 month advance and looking at my check its $168.03 for that advance. On month 10 I get a check for $18.66 per person per month that signed up with a med supp. At first it's small but definitely builds up over time

edit: just looked at your post again, and the bold part would only be true if you sold all the plans in the first month, actually only if they started the plan that month. If you sold someone in Nov then you would get the advance but only the last few months for the renewal....So year two you would make your normal $30k plus maybe $15k? then $30k plus another $15k. Something like that

 

[slushpuppyking]

Wow that is fantastic. Now I see why Frank mentions renewal income as his focus, not just the upfront commission. I mean if you work your ass off for a few years and have 300 policy holders under your belt at $18.66 a pop that is close to $5600/month without doing a damn thing.

Wow....other than med sup does any other type of insurance offer this attractive of residual income?

 

[senior-advisor-indiana]

That would be correct except you won't get a 12 month advance with most companies. Most are a 9 month advance. I do have some agents asking me for a 12 month advance. No way!

Actually most companies that I work with do a 12 month advance. I'm hoping to shut all my advances off in March 2012. I do not like paying interest.

 

[slushpuppyking]

Actually most companies that I work with do a 12 month advance. I'm hoping to shut all my advances off in March 2012. I do not like paying interest.

Good for you that would be awesome! Haha, I have to admit I wonder how motivated I would be as a sales person if I just new each month I would have 5 or 6 grand in the bank with doing no work at all lol!!

I mean yeah I know you need to keep going and keep selling but wow, single guy like me with no kids...that is some serious money. I'd probably take 6 cruises a year or something.