To all Brokers who work for themselves...

[Jmos]

How does this work? I keep hearing about producers who are brokers and they work for the client and can maximize benefits while minimizing premiums, and work whenever they want, calling wherever they want, and their payout is "street level" (which I assume is just another word for 100% of the premium with no advances.

Do you just get assigned on your own with various carriers? How do you get a software system for applications that way? Do you need a business license for the carriers to pay your business for the contracted work?

I'm new to all of this, and still looking at where I want to land my first job, but theres not only a lot to learn about insurance, theres also a lot to learn about job placement. I dont want to end up somewhere that I'll regret working. I know I could work directly with a single carrier as an agent, but that doesnt sound very good at all. I want to make 6 figures asap while helping people stay covered in the areas of life that mean the most to them. But I have a family to feed too.

My license, when I take the upcoming test. is going to be in life and health.

 

[Newby]

Most of us are brokers. And we make 120% and we do get advances.

Listen to some of the audio interviews on the FexContracting.Com website. Some of those guys went from captive to broker and dpeak of the experience. Listen to the Nick Frumkin and John Dugger interviews for s lot of insight.

 

[DHK]

First, what focus did you have in mind when you decided to get into the insurance business? You may find this video helpful:


Also, since you're looking at various firms, you may find this video helpful as well:

I keep hearing about producers who are brokers and they work for the client and can maximize benefits while minimizing premiums, and work whenever they want, calling wherever they want, and their payout is "street level" (which I assume is just another word for 100% of the premium with no advances.

My license, when I take the upcoming test. is going to be in life and health.

There is no such thing as a broker for life insurance. There DEFINITELY is for P&C coverage (which was what I assumed until I saw the last part of your post.)

The only thing that independent life agents do is contract with multiple companies and claim that they "always have your best interest at heart" and "I'll get you the best deal". They believe this is better than the "captive" model where agents are presumably "stuck" with just one company to offer. (Worst case scenario: captive agents might have to submit to their company for "first right of refusal" before shopping the case. However, if you have a matching financial philosophy and can learn to prospect BASED on that philosophy, it's not an issue.)

It's a marketing tactic - nothing else - and it's usually a race to the bottom for premiums (ie. commissions).

As soon as you've chosen which company and policy you want to sell to the client, you are now an agent of the company - completing the application and ensuring that the information provided is truthful so the company can make an appropriate underwriting decision.

Beware of the hype that minimum premiums are better. It usually isn't. Term insurance is actuarily priced to NOT be in force when you die.

Either you "fund the box" or you "pay the curve".


Once you learn why it's in the client's best interest to maximum fund a life policy, you'll also realize that it almost doesn't matter which company you choose.

Do you just get assigned on your own with various carriers? How do you get a software system for applications that way? Do you need a business license for the carriers to pay your business for the contracted work?

You start with one insurance company through your IMO and as you come up with new prospects, you add more and more as you go.

Illustration software is included with your company appointment.

You don't need a business license for the carriers. That's what your insurance license is for. I don't know what you mean by contracted work.

However, if you wanted to form an LLC or corporation, you would need that entity licensed so the carriers can pay your entity and have your entity pay you.

I'm new to all of this, and still looking at where I want to land my first job, but theres not only a lot to learn about insurance, theres also a lot to learn about job placement. I dont want to end up somewhere that I'll regret working. I know I could work directly with a single carrier as an agent, but that doesnt sound very good at all. I want to make 6 figures asap while helping people stay covered in the areas of life that mean the most to them. But I have a family to feed too.

Then I suggest that you get world-class training that is generally company-neutral, so you can bring that training to any company you choose.

Two great and inexpensive resources to start with:
1) Insurance Pro Shop: Start with their members only site for $1 for 30 days, then $29.95 a month. If you like what you're hearing, you can buy one of their systems... but just start with their online video training - especially their Trusted Advisor Success Training. It's the training I wish I had received my first week in this business.

https://www.insuranceproshop.com/insurance-sales/

A decent training video on prospecting:


2) Referral training: I think Sandy Schussel has the best training on referrals - bar none. It's only $37 for the mp3 download.

Products - Intensive Coaching for Financial and Insurance Professionals | Build Confidence, Improve Communication, Lead


Just don't get started on this until you pass your exam.

First things first.

There are plenty of good people here who have their own IMOs. You can contract with them.

I'm partial to Charlie Gipple with www.cgfinancialgroupllc.com and he does great product training. You can find his YouTube channel and get an idea on him. I've referred at least a dozen agents to him and they're all very pleased.

 

[Jmos]

Most of us are brokers. And we make 120% and we do get advances.

Listen to some of the audio interviews on the FexContracting.Com website. Some of those guys went from captive to broker and dpeak of the experience. Listen to the Nick Frumkin and John Dugger interviews for s lot of insight.

Thank you! I'll definitely look into him. I appreciate you taking the time to respond.

 

[Jmos]

First, what focus did you have in mind when you decided to get into the insurance business? You may find this video helpful:


Also, since you're looking at various firms, you may find this video helpful as well:






There is no such thing as a broker for life insurance. There DEFINITELY is for P&C coverage (which was what I assumed until I saw the last part of your post.)

The only thing that independent life agents do is contract with multiple companies and claim that they "always have your best interest at heart" and "I'll get you the best deal". They believe this is better than the "captive" model where agents are presumably "stuck" with just one company to offer. (Worst case scenario: captive agents might have to submit to their company for "first right of refusal" before shopping the case. However, if you have a matching financial philosophy and can learn to prospect BASED on that philosophy, it's not an issue.)

It's a marketing tactic - nothing else - and it's usually a race to the bottom for premiums (ie. commissions).

As soon as you've chosen which company and policy you want to sell to the client, you are now an agent of the company - completing the application and ensuring that the information provided is truthful so the company can make an appropriate underwriting decision.

Beware of the hype that minimum premiums are better. It usually isn't. Term insurance is actuarily priced to NOT be in force when you die.

Either you "fund the box" or you "pay the curve".


Once you learn why it's in the client's best interest to maximum fund a life policy, you'll also realize that it almost doesn't matter which company you choose.





You start with one insurance company through your IMO and as you come up with new prospects, you add more and more as you go.

Illustration software is included with your company appointment.

You don't need a business license for the carriers. That's what your insurance license is for. I don't know what you mean by contracted work.

However, if you wanted to form an LLC or corporation, you would need that entity licensed so the carriers can pay your entity and have your entity pay you.



Then I suggest that you get world-class training that is generally company-neutral, so you can bring that training to any company you choose.

Two great and inexpensive resources to start with:
1) Insurance Pro Shop: Start with their members only site for $1 for 30 days, then $29.95 a month. If you like what you're hearing, you can buy one of their systems... but just start with their online video training - especially their Trusted Advisor Success Training. It's the training I wish I had received my first week in this business.

https://www.insuranceproshop.com/insurance-sales/

A decent training video on prospecting:


2) Referral training: I think Sandy Schussel has the best training on referrals - bar none. It's only $37 for the mp3 download.

Products - Intensive Coaching for Financial and Insurance Professionals | Build Confidence, Improve Communication, Lead


Just don't get started on this until you pass your exam.

First things first.

There are plenty of good people here who have their own IMOs. You can contract with them.

I'm partial to Charlie Gipple with www.cgfinancialgroupllc.com and he does great product training. You can find his YouTube channel and get an idea on him. I've referred at least a dozen agents to him and they're all very pleased.

Wow thanks so much for all of this. I'll definitely soak this all up. And yes, after the test. Good advice. Sincerely, thanks.

 

[Advisor06]

Most of us are brokers. And we make 120% and we do get advances.

Listen to some of the audio interviews on the FexContracting.Com website. Some of those guys went from captive to broker and dpeak of the experience. Listen to the Nick Frumkin and John Dugger interviews for s lot of insight.

120% ??? I normally see 85-90 at max.

 

[Baseball7]

120% on FE products for sure

 

[WinoBlues]

120% ??? I normally see 85-90 at max.

You may be looking at FU traditional products. Better pricing.

They are talking FE. Higher pricing.

 

[Advisor06]

You may be looking at FU traditional products. Better pricing.

They are talking FE. Higher pricing.

Got it, thanks. I was starting to think I was getting a low rate.

 

[WMSG]

I can only share with you my experience -- and that is, when I first started in the life business, I joined a "firm" that was a fee-based planning firm. While they were a general agency of a large mutual insurer, they had their own RIA, a very large investment business, and another "agency" for all "outside" life business. Yes, they preferred you to give the general agency the first look and first preference, but you had the entire marketplace at your availability. They offered both a captive and non-captive contract. Regardless of which you took, you had the right to sell "outside" products. You were very much in your own business, worked for yourself, etc. -- but had the support, infrastructure, and more, from a large organization.

The same still exists today. But they are few and far between. However, I do know people who are "on their own" and completely independent. They may use a Crump for some or most of their business, they may have PPGA contracts with a couple of carriers, they may deal with some general agencies for other carriers, and/or a combination of all. They have illustration systems, new business systems, etc., for a few of their main carriers, and whoever they put their other business through supplies all of that for their respective business/carriers. While you are new, you can look at some producer groups and possibly partner with a big producer. If you were a big producer already, you could look at someone like an M Group type of situation.

Being that you are looking at your first job -- look around. Do your homework and due diligence, extensively, then do some more. When you are done with that, do more. And lastly, do more. You can certainly sign a non-captive contract and start out, but make sure they offer the capability of "outside business" and that you are your own business. That way, you can sell what you feel is best for the client, be objective, and both you and "the house" makes money on your production. Be prepared to pay rent, administrative support costs, technology costs, etc., after a certain period of time. Don't worry about getting paid 80% versus 90% -- worry about and focus on what is best for the client. The day I entered the business, a successful producer -- who was writing several million dollars a year in life premium -- on his own, without other producers working for him, told me...don't worry about what the commission is on a product. Focus on the client and put their interest first and only.

Good luck and all the best!