What do you do to 'justify' your commission?

[somarco]

Why anyone would work or a 10% commission is beyond me.

BX pays level 10%.

KP pays level 11%.

Most BX clients stay because no one else will take them.

Most KP clients stay because they get a good value and outstanding service.

I look at my BX & KP business as an annuity that pays me month after month, year after year.

My only regret is I did not start using BX earlier.

While other agents fret over rate increases and deal with moving business every few years, most of my clients stay with the same plan & carrier year after year.

When agents refuse to look beyond the commission page, and put their own interests above that of the client, they lose.

Just means more for me.

I am really glad there are greedy agents who don't mind walking away from business just because they give up a few bucks on the front end.

 

[Crabcake Johnny]

But when Carefirst caps meds at $500 I think it's worth more to get more.

 

[STIBROKER]

He was telling everyone that they'll be getting calls from greedy agents recommending Golden Rule and Fortis because they make 25% commission:

do not do that....but I do tell them that they might get pushed into a plan that because the company is giving away a vacation or a cash bonus if some one sells x amount of Right start Plans, basic plan, or a company they would not normally sell like World because of bonus's ......

 

[Newby]

Just curious: What does everyone do when someone complains about
a commission or sales charge?

How do you tactfully justify/explain to them the charge and the
earnings you make from the product/advice you give?

Don't you LOVE how Best-Buy requires their salespeople to tell everyone they wait on "Oh by the way, I'm not on commission."

That always gets me going! Like commission is a bad thing. I always let them have it and tell them not to complain to me. Especially when they are HIGH PRESSURE all the way.

Then I go elsewhere.

 

[Crabcake Johnny]

Don't know. I've bought two cars from CarMax and it's a great experience. The car salesmen are not on commission so when I go there to test drive I don't feel like I'm wasting their time. They're also not gonna steer me to the "head crack" car (the car a salesman makes a ton of commish from.)

The lot offers a one week or 1,000 mile exchange policy and because of that reps won't shove you in a car they know won't perform well.

 

[Frank Stastny]

I've never had anyone ask me about my commissions. To be frank, what I make it none of their business just like it's none of my business to go up to a Jiffy Lube owner how much he makes off my oil change.

Hi, I'm "Frank" and I have only had a couple of them ask me. I told them that when they take a policy from me, that makes me their "employee". They "pay" me a small percentage each month of their monthly premium to insure that all of their questions and problems are taken care of instead of them having to do it themselves. The only person they are to call if they need information or help is ME!

Beyond that, I agree, it is none of their business.

 

[Expat]

BCBS TX 20% 8% RENEWALS
UNICARE 22% 7% RENEWALS
ASSURANT 25% 7%
WORLD 30% 7%
AMER REP 32% 6%
SWSL 35% ?? (ONLY WROTE A COUPLE)

99% OF MY BUSINESS IS WITH BCBS (IN MY OPINION BEST PLAN).

I have a boat load of clients that have been with me for 12 years or so, and guess what, after they have had two or three rate increases I get a call and they want to change to a more affordable plan. Commission is extremely important to me but I will put them with a plan that has a good price/benefits ratio. Regardless of how much I make. (Something is better than nothing)

If the bloody insurance companies would quit stiching clients up after the first or second year, I would be very happy to leave them where they are.
But I do not forsee that ever happening.

(An Annuity is a very apt explanation of residuals)

 

[Bob_The_Insurance_Guy]

I've only had one client ask me, and he stopped me before I was able to respond. The reason he was asking was because he valued the amount of time I put into his plan, and wanted to make sure I was being properly rewarded (his words).

Most consumers are educated, and fully understand that we work on commission. That's why, being independent, I let them know that it's most important to satisfy their needs. I will be taken care of, no matter which way we proceed.

If someone is asking about commissions and add on charges, then they are trying to be a bigshot, a blowhard. I tend to send those people to my competition.

Mean people suck, and are a waste of time.

 

[David C]

I'm with Bob, I LOVE the "annuity" check I get monthly. I wish my life companies would pay me level commissions.

 

[WBunch]

Well I guess on the life side I must be a whore, considering my lowest contract is at 90% and highest is 115%. In louisiana and a few other states there are no compensation disclosures, unless you are providing services on a few bases. I only have to disclose I will recieve a commission on life or investment cases with my fee based clients. The others, its none of there business, nor do they want to know. They pretty much know what I make judging by my home address, and my success.