Commission Chargebacks - What Should I Do?

[rousemark]

NO! What is wrong with America today is companies like this that rob you of money that you earned! They lie to your face and dazzle you with the "opportunity" to make a lot of money with them. CORRECTION: all you're doing is making money for them. They are liars and thieves, and anyone associated with companies like this, knowing how they run, should be burned at the stake. I would like to spit on anyone associated with companies like this.

Companies are not altruistic.. Of course you are making money for them.. If not, then they wouldn't need you. What is wrong with America today is people sign contracts, giving their word to do things a certain way and then when things go wrong, they blame everybody but themselves when they are to blame because the were too lazy to actually read what they signed. What is wrong with America today, is people think they should not have to pay the debts they promise in advance to pay.

 

[Meghan8712]

She also doesn't understand that it's not the company that gets stuck with the bill if the agent doesn't pay, it's the low level manager or upline that gets left holding the agent's bag!

That being said, there are one or two companies that when an agent wants to leave them, will attempt to chargeback commissions for policies that are still active and current on premiums, and report to Vector in short order rather than allowing the agent to even make arrangements. That has the effect of putting that agent out of the business. That seems pretty wrong.

It's a pyramid scheme ! They put on a facade and will do whatever they can to make their money (including lie and steal from innocent people).

 

[Meghan8712]

Companies are not altruistic.. Of course you are making money for them.. If not, then they wouldn't need you. What is wrong with America today is people sign contracts, giving their word to do things a certain way and then when things go wrong, they blame everybody but themselves when they are to blame because the were too lazy to actually read what they signed. What is wrong with America today, is people think they should not have to pay the debts they promise in advance to pay.

If they are not altruistic, they shouldn't lie and claim to be so ! Which is exactly what the company I was working for did !

 

[DHK]

No, it's a ponzi scheme. It's the most legal, moral, and ethical ponzi scheme in existence. (Social security is too, but it's forced upon people, which makes it less moral in my eyes.)

Oh... you must be talking about a specific company. Never mind.

 

[Life Hawk]

It's a pyramid scheme ! They put on a facade and will do whatever they can to make their money (including lie and steal from innocent people).

Sorry to hear of your experience. But if I could give you some good advice it would be this... listen to some Jim Rohn on youtube. In short... you are paid for value you bring to the market place... that includes your attitude toward that market place.

The market will always pay very little or nothing for a bad attitude.

 

[rousemark]

If they are not altruistic, they shouldn't lie and claim to be so ! Which is exactly what the company I was working for did !

I have never had a company tell me that they had no intention of making a profit..

 

[shonceman]

It's a pyramid scheme ! They put on a facade and will do whatever they can to make their money (including lie and steal from innocent people).

Not really a pyramid scheme, although there are a few multi-level marketing companies selling insurance. Most are more like retailers who have low, middle, and upper level management.

But if you're an independent agent, you're running your own business. So if we compare that to a retail business, the person over you is like your wholesale supplier, who gets his goods from the company, then markets them to you, then you market to the customer. If I opened a Dollar store, for example and bought goods from the wholesaler on credit, but didn't sell the goods, I'd still owe him the money for what he gave me on credit. He still owes the company if they advanced the goods to him. See how that works?

Another comparison can be made to personal credit, which is what this is in reality. If you borrow money from the bank to buy a car, but then wreck it, you still owe the bank, right? Same thing here.

So, a company that offers to advance commissions to an agent that he hasn't earned yet, is just giving him credit, which none of them have to do. They're not evil for doing that, nor for expecting repayment. (Except for the one or two abusive practices I mentioned.)

 

[THE WOLF MINDSET]

Is there any real way to prevent chargebacks. I mean you hear of some agents who always get them, and you here of some that never have any. I guess just being a good saleman, always taking care of your clients, but I mean chargebacks can be out of your control if another agent comes in with a cheaper product.

 

[DHK]

Sure. Get paid on an "as earned" basis, rather than annualized commissions.

In addition:
1 - don't oversell - meaning trying to sell more premium than the client can afford
2 - put your recommendations in writing
3 - help your clients to "find the money"
4 - hold annual reviews to help remind them why they bought what they bought

 

[THE WOLF MINDSET]

Sure. Get paid on an "as earned" basis, rather than annualized commissions.

In addition:
1 - don't oversell - meaning trying to sell more premium than the client can afford
2 - put your recommendations in writing
3 - help your clients to "find the money"
4 - hold annual reviews to help remind them why they bought what they bought

I see, and I bet most agents won't do an as "earned" payment cause there checks wil be smaller.

Do all carriers let you do "as earned" or do most only do 9 months upfront.