World Contract

[joshril]

Is this a reasonable contract with World?

23%
3 month advance on submit
6 month advance on issue
first year commissions for 15 months...

Sounded pretty decent to me...

 

[Frank Stastny]

23% sounds like it is above street level commissions so from that standpoint it sounds pretty good. The part of it that raises questions is that you refer to it as "first year commissions".

What are your second year commissions, third year, fourth and fifth?

I would be somewhat skeptical of someone paying that much for the "first year" without having a lot more information.

Do you receive your checks from World or from him? I think we really need a lot more info.

 

[STIBROKER]

Is this a reasonable contract with World?

23%
3 month advance on submit
6 month advance on issue
first year commissions for 15 months...

Sounded pretty decent to me...

and your block of business belongs to your GA......you will always have a debt balance and if you ever leave then so does your block and you can have it if you write us a check......now lets talk about charge backs and escrow accounts.......

 

[Frank Stastny]

Sti, anyone who doesn't think this board has value better think a lot more than twice.

These guys play on the new agents and convince them that they are going to get rich in a couple of months. He really didn't need to say any more than 23% did he?

I hope he comes back and reads his thread before signing anything.

 

[Crabcake Johnny]

Getting paid on submit is a huge mistake.

 

[Frank Stastny]

Good advice. Taking a 9 month advance can be bad enough. I always recommend to new agents that if they need the advance try not to take if for more than 6 months max. Three is a whole lot better. They are going to get charge backs. Most new agents do.

 

[joshril]

Good advice. Taking a 9 month advance can be bad enough. I always recommend to new agents that if they need the advance try not to take if for more than 6 months max. Three is a whole lot better. They are going to get charge backs. Most new agents do.

I found a better contract... Thanks for the input.. 25%... 6 month advance on issue... I'm not too concerned with chargebacks.. I'm very comfortable with my products and never hard close any of my prospects.. Whether it's been health, life, or investment products, persistencey (sp?) has never been an issue. I've been selling health (major med-not UA) for the last 4 years, just not as an indy along with my other products.

 

[Crabcake Johnny]

If you're not doing "one shot one kill" closes and you're not deal with "I can't have this come out of my account before the 26th" people you won't have chargebacks.

 

[Frank Stastny]

I didn't realize you had that much experience in the market. No, you should not have any problems with charge backs.

I have seen a lot of new, promising agents get crushed by them.

 

[somarco]

I get 24% on my World business with no advance.

Same for a few other carriers.

Some that pay less on the front end pay more in renewal. It all evens out over time.