UHC Branded Aarp Vs Non Branded Comm

[luke4275]

I;m new to medsupps.. Can someone explain the difference between a non branded comm of 15 % yrs 1-6 and 2% for years 7 + for C,F,F+ and G. vs branded AARP 305 yr 1 and 190 yrs 2-6 for all plans except a, k and l and 152.00 yr 1 and 115 for yrs 2-6 for A,K and L ??? which is better and how do you decide to sell branded or non-branded?

 

[Success]

I would look at what the average premium is for that company in your area and decide yourself what commission would be higher. For example is 15% $1,500 (annual premium) higher, or would you be making more by earning the $305 for year 1 and the $190 years 2-6.

Also factor in that if you did take the 15%, that would be level for about 6 years. I am sure that the net average commission is probably about the same between both structures. They just like to make agents do more work then they have to.

It is all up to you. There is not one single thing in the insurance industry that is best for absolutely everyone. Do what works for you.

I would spend most of your time on selling, not calculating how much commission you will earn (not trying to be a jerk).

 

[DS4]

What is the best product for the client? If you sell based on what commission is best for you, you will have a short career.

 

[somarco]

I would spend most of your time on selling, not calculating how much commission you will earn

Wise beyond your years. I was about to post something similar.

Over my career I have always put my clients first, even when it put little or nothing in my pocket. I found that referrals from those I helped the most, even if I made nothing, flowed more freely than from those who actually bought something.

 

[Newby]

The first question should be to your clients. What do they think of AARP.
Many seniors hate AARP and would never buy a product with their brand on it. Others PREFER the AARP brand and don't even care who the actual insurance company is as long as it says AARP.

 

[Frank Stastny]

And others think AARP is an insurance company and will argue the point with you. (I love those the best. haha)

 

[Focus LTC]

What is the best product for the client? If you sell based on what commission is best for you, you will have a short career.

The opposite is often true...

1) A client will do business with you so long as you can "improve" their situation. It doesn't have to be the "best."
2) At least two parties are always involved in any business transaction. There has to be a benefit to BOTH parties in order for that transaction to occur.
3) If you lose your shirt every time you get your clients the "best" option, you're not going to be around to help any client improve their situation, instead they'll be paying too much and you'll be greeting them at walmart.

An example:
Here in MD the "cheapest" or "best" Med Supp pays 12%. Now there is another company that is 2%-3% more expensive but pays 23%. I have an assistant/telemarketer to pay and I do mailings. If I sold the "best" I'd have to layoff my assistant and do less mailings wich means I killed a job and I wouldn't be able to help as many people save money on their Med Supp...

Lots of folks on this forum ride around on a high horse and act like "commission" is a dirty word and they are really quick to jump down someone's throat when they have a legitimate question regarding "commissions."

Commissions are critical to your business' survival and they need to be taken into concideration when you are looking for a product to bring to market.

Your blanket statement of

"(Snootie voice) Whatever is 'best' for the client regardless of commission is what I'll always do because that's who I am, I don't care about money, I only care about the client..."

That attitude is irresponsible to yourself, and your business. And it it a lie. We all NEED to care about commissions or we'll be toast.

Luke, you asked a legitamite question. Don't feel guilty for it. You have to find that happy medium of what is best for the client AND what is best for you. Good luck!

 

[theinsuranceman]

The opposite is often true...

1) A client will do business with you so long as you can "improve" their situation. It doesn't have to be the "best."
2) At least two parties are always involved in any business transaction. There has to be a benefit to BOTH parties in order for that transaction to occur.
3) If you lose your shirt every time you get your clients the "best" option, you're not going to be around to help any client improve their situation, instead they'll be paying too much and you'll be greeting them at walmart.

An example:
Here in MD the "cheapest" or "best" Med Supp pays 12%. Now there is another company that is 2%-3% more expensive but pays 23%. I have an assistant/telemarketer to pay and I do mailings. If I sold the "best" I'd have to layoff my assistant and do less mailings wich means I killed a job and I wouldn't be able to help as many people save money on their Med Supp...

Lots of folks on this forum ride around on a high horse and act like "commission" is a dirty word and they are really quick to jump down someone's throat when they have a legitimate question regarding "commissions."

Commissions are critical to your business' survival and they need to be taken into concideration when you are looking for a product to bring to market.

Your blanket statement of

"(Snootie voice) Whatever is 'best' for the client regardless of commission is what I'll always do because that's who I am, I don't care about money, I only care about the client..."

That attitude is irresponsible to yourself, and your business. And it it a lie. We all NEED to care about commissions or we'll be toast.

Luke, you asked a legitamite question. Don't feel guilty for it. You have to find that happy medium of what is best for the client AND what is best for you. Good luck!

I like your way of thinking. If all I wanted to do was help people I would be at the local food bank, etc.

 

[Frank Stastny]

Focus,

You may be able to improve their position but if I come along behind you and can improve their position even more then I will be earning the commission and you will be left out.

My commission may be a little smaller than yours but I will still be earning it while you are out looking for a new client to replace the one that I now have.

It is a very fine line that we walk. It is a fact that seniors purchase to save money. Very little else matters to them.

I have done well selling Med Supps. I only sell Med Supps mostly to people who already have a Med Supp. I do so by improving their position more than the agent they currently have their policy with did.

I have sold for companies that have paid me as low as 12% and as high as 24% commission. I have always looked at it as not how much am I getting paid but how long can I keep that senior as a client.

I still have seniors as clients that I wrote in 1993, my first year as an agent and I'm still earning commission every time they make a premium payment.

Agents who sell FE and other products make the bulk of their money in the first twelve months. Renewals are very small. Their main concern is that the client make the first twelve months of premium payments. In most states Med Supp companies pay first year commission for six years. In Texas it is for seven years and in Indiana it's for eight years.

When premiums get too expensive for my clients I move them to another, less expensive company and my first year commission for six years starts all over again. I will sacrifice a few points in commission if necessary to always keep my client in the "best position". It has paid off in spades for me the last seventeen years.

 

[Dowejonez]

I like your way of thinking. If all I wanted to do was help people I would be at the local food bank, etc.

I'll give you a little advice. Take your picture off for a while till the smoke clears from your post.

After you have the check you can be honest with your client and say, "Maam, thank you. Acme insurance is not quite the best answer for your situation but with the higher commission they pay, I may be able to buy that new house sooner than I expected."

I gotta hand it to ya. You are kinda honest.