Touchy subject... but I'm curious to know

[HealthGuy]

Why should we in our profession agree to work for half price just to sell the lowest priced carrier? Makes me feel like a dirty prostitute. Do people in other professions agree to work for half price? NO. Why should we?

 

[Delta76]

I owe it to my client to do the best thing for their situation. I owe it to myself to work a market that's profitable.

 

[HealthGuy]

Health insurance can be a profitable market if we as agents would avoid selling the carriers in our market that decide to rape agents and pay them 1/2 the fair market commissions. Who likes bending over and working for half price? There is always that one carrier that thinks they can stay in business by either selling direct or paying 1/2 commissions to agents. If this is the way a company treats brokers, they may treat policyholders the same and make every effort to NOT pay claims. Logical?

 

[moonlightandmargaritas]

I would like to respectfully disagree with M&M while answering your question. [Actually, I may not be disagreeing as much as clarifying "Doing what's right and best for your client"]

If you're not making enough to keep yourself in the business, then you won't be around serve them properly in the future.

Agreed: Why do I have to concede to work for half price just to sell the lowest priced carrier? Do people in other professions say they will work for half price? Why should we have to?

Let me clarify this first: nowhere did I say that I believe that the "lowest price" is always the best value for the client.

I believe that you need to be fairly compensated for your time and expertise. But you guys are confusing two seperate and distinct issues:

1) What's best for the client
2) Your ability to negotiate comp

Comp can be negotiated - but you've got to have enough production to have some clout. If you do ten cases a year with them...and they don't get your business...they yawn.

Over the course of the last year, I've been able to negotiate my comp upward with a carrier. Not my primary "go to" guys, but I've done a significant amount with them - more than they'd like to lose. I've gotten 'em to raise it from 20% to 22% and recently 25% fyc.

 

[ChrisMiller]

I was a bit confused by the title of the thread and the content of the post but I have to say it did get my attention.

When it comes to numbers, I think you have to really consider breaking the "numbers" down to bit size goals that you can accomplish on a daily basis that will help you get to your ultimate target.

Not sure what kind of response you were looking for but if it was for how much people are making a year...good luck with that!

Doesn't matter what business you are in, focused action will get you to the numbers you want to achieve.

Chris

 

[xrac]

I would like to respectfully disagree with M&M while answering your question. [Actually, I may not be disagreeing as much as clarifying "Doing what's right and best for your client"]

An industry veteran told me, years ago, that it has to be a good deal for all parties involved. If you are finding your clients the absolutely best price, but you are not making enough to keep yourself in the business, then you won't be around serve them properly in the future.

Exactly! There is nothing wrong with us earning a living wage and making a decent amount of money for our efforts. The agent who always sells cheapest and struggles to survive will not be around!

 

[ABC]

When you talk about commission.
50% of something is a lot better than 100% of nothing.

 

[Frank Stastny]

I was thinking something similar:

Add a little, to a little, to a little and it becomes a lot.

Just do the right thing by the client, and the rest takes care of itself. If you're worried about the money, you're not focused enough on the client.

The best advice I received when I first started was from a very successful agent who had been in selling insurance for a very long time.

He said the key to being successful is to just write apps and treat every client as though they had just bought a $2,000 per month LTCi policy. Doesn't matter how much the premium is, sell the client the best policy you have that suits their needs and the money will follow.

He wasn't wrong. Did I mention that he said to "just concentrate on writing apps"?