How Do You Handle Commissions/fees Objections?

[maxreferrals]

I know every situation is different, but how do you handle a prospect (or client), fussing over the fees/commissions they know you're gonna make from selling a policy?

What about people who ask you to lower your fees (for you life, health, annuity agents)?

Do you negotiate?

Thx.

 

[Ranger]

I think if you check with your state insurance commission you will find that it's considered illegal to negotiate a commission. It's probably listed under the term rebating. I'm sure there are a lot of other people on the board who can give numerous reasons why you shouldn't consider it.
If you somehow do cut a deal, who's to say that the client won't cancel the policy? If that happens in the first year, you'll get a chargeback from the insurance company. So you will essentially be giving money to your client.

 

[Newby]

I know every situation is different, but how do you handle a prospect (or client), fussing over the fees/commissions they know you're gonna make from selling a policy?

What about people who ask you to lower your fees (for you life, health, annuity agents)?

Do you negotiate?

Thx.

I've been selling insurance 12-years and I've never had a client ask anything like that.

As long as you're giving them the lowest price they can buy it for anywhere, why would they care what you make?

 

[Waterfront Financial]

I am on the life side of insurance. I don't charge fees when people come to me for a financial consultation, the various insurance companies pay me when I place a client into their products, there is no negotiating that period.

As for your 1st question, well you are a working agent and using your time and license to give the client the best advice possible, you are not working for free.

 

[LGilmore]

"What about people who ask you to lower your fees (for you life, health, annuity agents)?"

I simply say I can't as it is against the insurance laws of my state and I wouldn't want "either one of us" prosecuted for it.

Several things come to mind.. rebating, sharing commissions with an unlicensed agent, phantom income involving the IRS for the client. Pick anyone of em...

 

[OHInsAGNT]

I know every situation is different, but how do you handle a prospect (or client), fussing over the fees/commissions they know you're gonna make from selling a policy?

What about people who ask you to lower your fees (for you life, health, annuity agents)?

Do you negotiate?

Thx.

Did you come from the mortgage business? Just curious with the question.

I've never had a client ask me about fees or commissions. In Ohio, as well as most other states, it's illegal to negotiate. If the client is part of a specific risk class, they pay that rate. The only variation can be among carriers as they define their rates and risk classes differently.

Did you actually get the question?

 

[stuy119]

I know every situation is different, but how do you handle a prospect (or client), fussing over the fees/commissions they know you're gonna make from selling a policy?

What about people who ask you to lower your fees (for you life, health, annuity agents)?

Do you negotiate?

Thx.

I do mostly group health, and I tell them I get paid when they pay the bill. I WANT them to pay the bill every month so that I get paid, so I'm not going to screw them as I want to get a check every month. If they can't afford it, I don't get paid, and then I don't eat - why would I put myself through that?

 

[sissymary]

Tell him it's none of his business! Ask him how would he like it if he worked 5 days a week and only got paid for 3? This is how ins works. You get paid on what you sell, not per hour and such. F him. I would walk away after telling him where to put the door knob.

 

[moonlightandmargaritas]

I know every situation is different, but how do you handle a prospect (or client), fussing over the fees/commissions they know you're gonna make from selling a policy?

Over the last 20+ years, it has not come up once.

 

[Norwayguy]

I have been asked and I tell them I am paid a commission on the premium they pay. I then tell them the rates are filed with the state and if the product is available directly from the carrier that the rates are the same. I am a cost effective sales tool for the carriers as I only cost them money on an indifferent policy.