First Year Commissions

[jasinsc]

Trying to get a handle on commission levels. My IMO is paying an average of 48% on most life insurance and 10% on Med Sup. I have read on this forum and others that higher commissions are paid by other IMOs. Am I getting a raw deal?

What are the names of the companies paying higher commissions? Is there a catch? .

I'm a newer agent and a bump in commission level would really help my family. Any advice would be greatly appreciated.

Thank you,

Jason

 

[Newby]

Trying to get a handle on commission levels. My IMO is paying an average of 48% on most life insurance and 10% on Med Sup. I have read on this forum and others that higher commissions are paid by other IMOs. Am I getting a raw deal? What are the names of the companies paying higher commissions? Is there a catch? . I'm a newer agent and a bump in commission level would really help my family. Any advice would be greatly appreciated. Thank you, Jason

It depends on the types of insurance AND what your upline is doing for you. If you are provided an office space and daily hands on development you will be paid less.

Just call a few IMOs and request their commission grids that they offer to new agents. Ours will show you the FE mainly along with a few term and WL companies. Compare the products you are actually selling evenly. Not term to FE or Med Sup to Obamacare, etc.

48% on life and 10% on Med Sup are very, very low. New agents start at more than double that at most agencies and still receive training and lead support. But not office space. I don't think office space is worth that much though.

Lesson: no new agent should ever sign up with anyone before receiving PRINTED (never verbal) commission grids from at least three IMOs. You would never have taken that offer if you researched first. But it's never too late to change.

 

[tlmarketing]

You didn't mention which life companies you are working with, but 48% is very low.

Are they giving you leads, marketing support, etc?
Compensation on life products varies depending on type/term, etc...but should be in the 90-100% range for 20 year term, and slightly less for 10, 15, etc.

 

[Newby]

Trying to get a handle on commission levels. My IMO is paying an average of 48% on most life insurance and 10% on Med Sup. I have read on this forum and others that higher commissions are paid by other IMOs. Am I getting a raw deal? What are the names of the companies paying higher commissions? Is there a catch? . I'm a newer agent and a bump in commission level would really help my family. Any advice would be greatly appreciated. Thank you, Jason

Your FE companies should be at 115% first year on average. Med Sups should average around 21-22% for new agents. Renewals on both are also much higher than what you have.

 

[mahdlokg]

Just curious what state you are licensed in? There are some small differences between some states, but I agree that what you are getting now is not in the competitive range.

 

[Ksutton]

It certainly depends on your relationship/ agreement . I've taken small commission cuts for high quality training and subsidized lead cost ... Never anything that low . It seems you may be at a lower contract than others , but without an understanding of your "whole deal" I can't say anything for sure .

 

[jasinsc]

You didn't mention which life companies you are working with, but 48% is very low.

Are they giving you leads, marketing support, etc?
Compensation on life products varies depending on type/term, etc...but should be in the 90-100% range for 20 year term, and slightly less for 10, 15, etc.

Very little marketing, we generate out own leads. At times they offer us $5-$10 leads that I stopped buying. They were no better than a cold call.

 

[jasinsc]

It depends on the types of insurance AND what your upline is doing for you. If you are provided an office space and daily hands on development you will be paid less.

Just call a few IMOs and request their commission grids that they offer to new agents. Ours will show you the FE mainly along with a few term and WL companies. Compare the products you are actually selling evenly. Not term to FE or Med Sup to Obamacare, etc.

48% on life and 10% on Med Sup are very, very low. New agents start at more than double that at most agencies and still receive training and lead support. But not office space. I don't think office space is worth that much though.

Lesson: no new agent should ever sign up with anyone before receiving PRINTED (never verbal) commission grids from at least three IMOs. You would never have taken that offer if you researched first. But it's never too late to change.

Agree, a cubicle is not worth giving up 40-50% of your commission.
I mainly sell term life, FE, MA, and med supps. Generate all of my own leads. We don't have daily hands on development but do receive product training a few times a month. Administrative personnel is great at keeping up with anything we ask of them, contracting, payment, etc. But as with the cubicle, I'd give up that support to double my commission. Just need to be pointed in the right direction. Thank you for your comments.

 

[1963]

I agree with our fellow agents - 48% is WAAAY lower than industry standard. A low commission scale would bottom out at roughly 80% (or more). There are companies paying at 125% (Forester's), and many others paying in the 95-110% range. A lot depends on your IMO; most of them use many of the same carriers, but the commission levels on the same premiums change from one IMO to another. Besides Forester's, Transamerica and Mutual of Omaha are two good ones, as is ANICO (American National). Most importantly, research the IMO's that are available to you, and make your best choice based on your own criteria. Hopefully this may help. Good luck to you!

 

[Todd King]

Agree, a cubicle is not worth giving up 40-50% of your commission.
I mainly sell term life, FE, MA, and med supps. Generate all of my own leads. We don't have daily hands on development but do receive product training a few times a month. Administrative personnel is great at keeping up with anything we ask of them, contracting, payment, etc. But as with the cubicle, I'd give up that support to double my commission. Just need to be pointed in the right direction. Thank you for your comments.

We do specialize in the FE and Medicare market if you would like to give us a call.

One thing about being able to move your contracts is if you can get a release from the IMO you're with now. Because you're already getting screwed over royaly, I'm afraid that's just another organization that thinks they somehow own you and you'll have trouble getting that release.

Give me a call and I can help you with some of the things you'll need to start doing to get away from them.