MDRT Qualification

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insurancemet

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Hello, I received one of those emails the Dean Cipriano Insurance Selling System and listened on the call for a few minutes. Some of the figures he shared:

To be qualified for MDRT you would only need to make 60K a yr.
There is only about 20K mdrt and 1 million agents.
Top 500 agents make $350k or more.

Just wondering if you guys thing this figures are accurate or
close to accurate. Thanks.
 
insurancemet said:
Hello, I received one of those emails the Dean Cipriano Insurance Selling System and listened on the call for a few minutes. Some of the figures he shared:

To be qualified for MDRT you would only need to make 60K a yr.
There is only about 20K mdrt and 1 million agents.
Top 500 agents make $350k or more.

Just wondering if you guys thing this figures are accurate or
close to accurate. Thanks.
Click to expand...

$60,000 sounds a bit low for an avearge, but it is very possible to make MDRT on earnings of only $60,000. Such a low number is possible because there is more than one way to qualify. One is based on commissions earned. These days, you are in the upper 80's in commission to qualify. The other way is based on premium, and it requires 180,000 in premium, with half of that coming from a specific list of coverages (Life, Disability, LTC mainly).

Let's say you write $90,000 of term life premium as a captive-employee agent, you might get comissions of $40,000 for making those sales. The balance of your sales were Medicare Supplements, $90,000 x 18%, or $16,200. Total earnings, $56,200.

Another example: Your only sale for the year is a huge group life insurance case, with a $2,000,000 annual premium. Group insurance gets 10% credit based on premium, so you wind up with 200,000 premium credits, which qualifies you for MDRT based on premium. Now, most of you realize that those super large group life cases tend to pay out chump change on the last $1,900,000 of premium. So, you might very well only earn $20,000 in actual commissions on the group. But you are still earned membership in MDRT based on the premium volume.

Remember, MDRT does not (I repeat, does not) allow you to count production bonuses, so the fact that that $2,000,000 group life case might help contribute to a bonus that is even bigger than the actual commission means nothing with respect to MDRT. The same goes for captive agents who get "expense bonuses" when hitting certain production levels.

In short, earning $60,000 and also qualifying for MDRT is a very realistic scenario.
 
Keep in mind that there are a lot of agents who qualify for MDRT and choose not to join it. It's not cheap and many see no point in it.
 
Actually, a lot of the captive agents qualify based on variable annuity production, so they are earning about half of the 87k needed to qualify (I knew a bunch of Prudential agents who were/are doing this).

There is a new qualifying metric for earned income. So now they are adding even more ways to fudge the numbers and get into the group, so you can pay for membership--about the only thing that you actually do besides go to a meeting where people with inflated egos give speeches.
 
Newby said:
Keep in mind that there are a lot of agents who qualify for MDRT and choose not to join it. It's not cheap and many see no point in it.
Click to expand...

I would agree with that. In fact, I think the only people who care about MDRT are other agents.

The public doesn't care. In fact, it may turn them off to working with you... if you're showing that you're "all about sales" instead of service.

I admit that if I'm looking at a sales system, it helps to know if the person using it (or other testimonials for that system) has qualified for the MDRT. Also, it helps if you have a MANAGER that has qualified for the MDRT at least once.

If you're looking to hire or sponsor agents, it's an attractive thing to see. If you're an independent agent, it probably doesn't matter at all.
 
I remember the first time I qualified, I couldn't write the check quick enough to join,I thought wow I'm in the big time now. but soon learned it was a waste at least for me. the only people who even know what it is are other insurance people. So I don't bother anymore. the public could care less sort of like having a bunch of letters after your name.
 
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