Insurance Agent Forum

[squeed]

I've read some things about commissions that ramp down, so you get paid for 7 years on a life plan. If you still have the client calling you for help in the 8th year, do you just help them for free for the continued referrals ? How do you handle "expired customers" where you aren't earning commissions you anymore ? Is that just a cost of doing business ?

Or am I misunderstanding how commissions work ?

-S

[arnguy]

The short answer is YES.

[Newby]

Originally Posted by squeed

I've read some things about commissions that ramp down, so you get paid for 7 years on a life plan. If you still have the client calling you for help in the 8th year, do you just help them for free for the continued referrals ? How do you handle "expired customers" where you aren't earning commissions you anymore ? Is that just a cost of doing business ?

Or am I misunderstanding how commissions work ?

-S

Some do, some don't.

Some companies pay a maintenance commission forever.

Some pay the full renewal commission forever.

Most companies quit after 10-years.

[ergammill]

Read your contract each compnay is different, most contracts require you to stay appointed with the company in order to continue to receive commissions. So if you sell a couple policies and then don’t do anything else for 1-2 years, most will cancel your appointment.
As to the client calling you for help in the 8th year and “helping them for free”, 1st if the client is calling you 8 years later, you either did something very very wrong, or something very very right.
If they are calling for help with the one and only policy you sold them 8 years ago something’s not right, you should have stayed in touch by mail, email, phone, Birthday cards, and a yearly review of the policy info. If they are calling for “help” 8 years later you did something wrong.
If they call you because they need help with other insurance needs or to recommend you, because you have stayed in touch and became a trusted professional to them, then you’re not helping them for free, are you.
Are you misunderstanding how commissions work? yes, if you look at your commission as a one time payment for selling something you won’t last long, a commissions is payment upfront for helping someone for as long as they need your help, that’s the difference between a client and a customer.
The only time my clients expire is when they’re buried.
E R Gammill
erg.mymedicalquaotes.com
ergammill.com

[briko3]

The question you need to ask yourself is how you would want your mother to be treated by her agent and do that for yours.

That's what I do anyway...to each his own though.