Health Insurance Sales Commission Question

plays2win

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I'm a newly licensed agent. I got a call from the owner of a local insurance agency that I had sent my resume to and he said he was interested in speaking to me about a job. He said he sells health insurance for individuals and groups and I would be focusing on individuals at first and then possibly move into group sales.

He pays only straight commission and the commissions would be stretched out over a twelve month period. I would not be eligible for residuals on my sales. The questions I need answered are; Is this standard for a small health insurance agency to offer only straight commission with no residual and if I was to work for this guy and get no residual income what would a fair commission be?
 
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Insurance Sales is not a job, it is a business.

At a "Sales Job" you usually a provided with"

Sales and Product Training (Or at least training on how they want you to sell)

Leads (Varies)

Someone to learn from or to "Monitor" if it's phone sales.

I would not get into this gig right now, unless you have $5-15k saved (cash).
 
He provides leads and it is inside sales. But back to my original question, "What is the commission percentage I should expect to earn in health insurance sales when the agency doesn't provide any residual commission?"
 
"What is the commission percentage I should expect to earn in health insurance sales when the agency doesn't provide any residual commission?"

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Cause you will quit soon.

Honestly, what kind of leads, how many, what is you're fyc?
 
I'd avoid health insurance if you're just starting....better to get into life sales IMO. Commissions are too low on health now to make it worth your time and the wait for the commissions to come in.
 
While this arrangement may appear to be one sided, it is actually a norm in this business. As an earlier post stated, "Insurance Sales is not a job, it is a business", so you need to approach it from this perspective. The agency owner is paying the expenses (office, lights, leads, etc.).

I have been in health all my life, 28 years, and this is not a good time for "most" health brokers, i.e., decreased commissions, health exchanges, etc. Unless you are willing to work the self-funded market, health will be very tough for you. Personally, I would not get into health only.

Good luck.
 
Insurance is a sales job, which many seem to forget or dismiss, which means you need a set of sales skills to do it well. And anywhere you work, you're self employed, what you do determines your fate, regardless of who's name is on the check.

That aside, you just outlined some of what my agency offers that most do not LOL

Insurance Sales is not a job, it is a business.

At a "Sales Job" you usually a provided with"


Sales and Product Training (Or at least training on how they want you to sell)


Leads (Varies)


Someone to learn from or to "Monitor" if it's phone sales.


I would not get into this gig right now, unless you have $5-15k saved (cash).
 
He provides leads and it is inside sales. But back to my original question, "What is the commission percentage I should expect to earn in health insurance sales when the agency doesn't provide any residual commission?"
The commission structure should be important to you, but you have several concerns at this time. if you don't know what you are doing they could pay you 200% and throw in a hefty residual and you still have no idea whats going on.
 
I'm a newly licensed agent. I got a call from the owner of a local insurance agency that I had sent my resume to and he said he was interested in speaking to me about a job. He said he sells health insurance for individuals and groups and I would be focusing on individuals at first and then possibly move into group sales.

He pays only straight commission and the commissions would be stretched out over a twelve month period. I would not be eligible for residuals on my sales. The questions I need answered are; Is this standard for a small health insurance agency to offer only straight commission with no residual and if I was to work for this guy and get no residual income what would a fair commission be?

I'd be willing to bet that he is going to require you to assign your commissions to him. Not a good thing for you but a kick-ass deal for him.

I would never ask an agent to give up the ownership of their business. I would never even remotely consider assigning my commissions regardless of what is promised, especially "leads".

Look for an excellent contract that rewards you for your efforts and learn to prospect. "Leads" may be helpful to supplement your other efforts but don't become a lead whore, you will starve to death even if they are "free". (You will pay dearly for those "free" leads.)
 
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