Over 150.000 insurance professionals and consumers come to the Insurance Forum every month. Click here to register for FREE


Go Back   Insurance Forums > Insurance Agents and Brokers Forum > Getting Started Selling Insurance

Reply to Commission Rates?     
Old 01-27-2010, 09:09 AM   #1
Expert
 
Join Date: Nov 2009
Posts:22
State: cratos is an Insurance Agent from Georgia
Commission Rates? Commission Rates?
I am starting with Modern Woodmen of America soon and am starting to second guess the commission schedule based on things I've read here.

Going from my memory of the contract I will be paid as follows:

40% on Term (4% renewals for 10 years)
40 - 65% on Universal and Whole Life depending on the specific product (7% renewals, for 10 years)
4% on annuities
Monthly bonuses based on persistency and volume
55% on GDC of Financial Services (Mutual Funds etc..)
Almost forgot to include: 2 year business building supplemental income (50% of commissions for first year and 25% in 2nd year; both capped at $2000 in any given month)

I will be getting trained by the Regional Director who has been with the company for 20 years. I have access to free marketing materials (fliers/info sheets/booklets) and the company provides all fraternal program supplies that I need at no charge. Some supplies and marketing items will cost me. There is an advertising subsidy that I can qualify for based on my production.

For the more experienced here; Does this look like a balanced/fair package?

I am 100% new to this industry and am a bit concerned about working on 100% commission. I have worked in retail furniture management/sales in the past, but have spent the last 4 years as a CPA (auditor).

How long before I can realistically expect to meet my income minimum requirement ($2000 per month after expenses) and replace my current income ($3800 per month after expenses)?
------------------------------------

Last edited by cratos; 01-27-2010 at 10:31 AM. Reason: Missing info
  Reply With Quote to Commission Rates?
Old 01-27-2010, 10:27 AM   #2
Guru
Mark on Commission Rates?
 
Join Date: May 2008
Posts:7,927
State: Mark is an Insurance Agent from Georgia
Mark is a member of 5000 posts Super VIP club
Commission Rates? Re: Commission Rates?
Originally Posted by cratos View Post
I am starting with Modern Woodmen of America soon and am starting to second guess the commission schedule based on things I've read here.

Going from my memory of the contract I will be paid as follows:

40% on Term (4% renewals for 10 years)
40 - 65% on Universal and Whole Life depending on the specific product (7% renewals, for 10 years)
4% on annuities
Monthly bonuses based on persistency and volume
55% on GDC of Financial Services (Mutual Funds etc..)

I will be getting trained by the Regional Director who has been with the company for 20 years. I have access to free marketing materials (fliers/info sheets/booklets) and the company provides all fraternal program supplies that I need at no charge. Some supplies and marketing items will cost me. There is an advertising subsidy that I can qualify for based on my production.

For the more experienced here; Does this look like a balanced/fair package?

I am 100% new to this industry and am a bit concerned about working on 100% commission. I have worked in retail furniture management/sales in the past, but have spent the last 4 years as a CPA (auditor).

How long before I can realistically expect to meet my income minimum requirement ($2000 per month after expenses) and replace my current income ($3800 per month after expenses)?

Your commissions are less than half of what other new agents are getting paid.

Street level is 100% or more on most UL, Whole Life and Term products these days.

I guess it all depends on what your MGA is going to do for you or help you with.

------------------------------------
Mark Rosenthal aka markingriffin
IMO/Ins Agent/Agent Trainer/Free Advice
[email protected] www.rosenthalfiles.com
Click Here to Join my Free Email Newsletter
  Reply With Quote to Commission Rates?
Old 01-27-2010, 10:46 AM   #3
Guru
Josh on Commission Rates?
 
Join Date: Jan 2009
Posts:11,781
State: Josh is an Insurance Agent from Virginia
Josh is a member of 5000 posts Super VIP club
Commission Rates? Re: Commission Rates?
Originally Posted by cratos View Post
Going from my memory of the contract I will be paid as
I will be getting trained by the Regional Director who has been with the company for 20 years. I have access to free marketing materials (fliers/info sheets/booklets) and the company provides all fraternal program supplies that I need at no charge. Some supplies and marketing items will cost me. There is an advertising subsidy that I can qualify for based on my production.
Considering the low comp they should be giving you piles of free leads and you shouldn't have to pay anything for your marketing.

Rough rule of thumb:
50% should = awesome training and free leads
75% should = subsidized leads and support when you need it.
100% plus should be you're almost 100% on your own on leads and don't need much training and support.

Again, those are just rough numbers, but that should give you a better idea of what you should be looking for.

------------------------------------


Telemarketing lists for $50/month
www.ListShack.com
Great for FE, Medicare, Auto, Homeowners, and more!
888-905-3282
  Reply With Quote to Commission Rates?
Old 01-27-2010, 10:51 AM   #4
Expert
 
Join Date: Nov 2009
Posts:22
State: cratos is an Insurance Agent from Georgia
Commission Rates? Re: Commission Rates? cratos is the thread starter for: Commission Rates?

There are no leads provided.

The closest thing would be call lists that can be purchased, for 10 cents a name (I believe).
------------------------------------
  Reply With Quote to Commission Rates?
Old 01-27-2010, 11:05 AM   #5
Guru
Mark on Commission Rates?
 
Join Date: May 2008
Posts:7,927
State: Mark is an Insurance Agent from Georgia
Mark is a member of 5000 posts Super VIP club
Commission Rates? Re: Commission Rates?
I can hear my kids screaming (NO DEAL,,NO DEAL))

Tell the banker No deal and pick another briefcase.
------------------------------------
  Reply With Quote to Commission Rates?
Old 01-27-2010, 11:19 AM   #6
Guru
Justin Bilyj on Commission Rates?
 
Join Date: Jan 2009
Posts:4,855
State: Justin Bilyj is an Insurance Agent from Ohio
Justin Bilyj is a member of 1000 posts VIP club
Commission Rates? Re: Commission Rates?
I know of a GA that has awesome contracts with WOW, and they have lead drops for you...
------------------------------------
  Reply With Quote to Commission Rates?
Old 01-27-2010, 11:25 AM   #7
Guru
Josh on Commission Rates?
 
Join Date: Jan 2009
Posts:11,781
State: Josh is an Insurance Agent from Virginia
Josh is a member of 5000 posts Super VIP club
Commission Rates? Re: Commission Rates?
Originally Posted by cratos View Post
There are no leads provided.

The closest thing would be call lists that can be purchased, for 10 cents a name (I believe).
Even on a small order I can get them for less than 5 cents/record or less. PM or e-mail me if you want some other options. There are some folks on this board that can do well for you depending on where you're looking for and how much training you need.
------------------------------------
  Reply With Quote to Commission Rates?
Old 01-27-2010, 12:57 PM   #8
Guru
 
Join Date: Mar 2007
Posts:480
State: David C is an Insurance Agent from Undisclosed Location
Commission Rates? Re: Commission Rates?
I've seen way too many new guys crash and burn trying to be independent from the start. Some of them would have been good for this industry but they didn't last long enough to learn their way around.

Modern WOW may or may not be a good vehicle for Cratos. But there is just no substitute for a good mentor/manager in the early days.

All the MWOW/WOW reps I've known who stayed at it have had good success developing leads through their fraternal benefit program.

Can he easily get 20-40 % more commissions? Yes.

Can he develop on his own the skills necessary for his success? Maybe. The thing is he doesn't know what he doesn't know, and that's a long learning curve.

I think many times we do a disservice to new guys by saying you can get way more money by starting as an independent. The real comp can go up quite a bit with matching FICA, bonuses,...

It can work starting as an indy but I believe the chances are slim when compared to starting in a "career shop" type operation.
------------------------------------
  Reply With Quote to Commission Rates?
Old 01-27-2010, 01:16 PM   #9
New Member
 
Join Date: Dec 2009
Posts:8
State: mistermarty is an Insurance Agent from Alabama
Commission Rates? Re: Commission Rates?
Originally Posted by MedicarePlanSolutions View Post
Even on a small order I can get them for less than 5 cents/record or less. PM or e-mail me if you want some other options. There are some folks on this board that can do well for you depending on where you're looking for and how much training you need.
Hi-
I would be interested in some other options please e-mail me when you have a chance.

Thanks,

Marty
------------------------------------

Last edited by mistermarty; 01-27-2010 at 01:17 PM. Reason: added word
  Reply With Quote to Commission Rates?
Old 01-27-2010, 01:18 PM   #10
ABC
Guru
ABC on Commission Rates?
 
Join Date: Jun 2008
Posts:3,948
State: ABC is an Insurance Agent from Undisclosed Location
ABC is a member of 1000 posts VIP club
Commission Rates? Re: Commission Rates?
Originally Posted by Markingriffin View Post
Your commissions are less than half of what other new agents are getting paid.

Street level is 100% or more on most UL, Whole Life and Term products these days.

I guess it all depends on what your MGA is going to do for you or help you with.

Where and what carriers are giving 100% comp on WL,UL, and Term without sales quotas?
I write a small amount of Term a year ($20,000). I had to fight with a handful of GA's to get 95%.

I do understand if you choose to be a career agent with a carrier you can get higher comps but I am a broker.
------------------------------------
  Reply With Quote to Commission Rates?
Reply to Commission Rates? 

  Insurance Agent Forum > Insurance Forums > Insurance Agents and Brokers Forum > Getting Started Selling Insurance




Similar Threads with Commission Rates?
Thread Thread Starter Forum Replies Last Post
Med Supps: Low Rates vs Low Rate Increases AgentPipeline Senior Insurance Forum 13 02-27-2010 01:01 PM
Foresters Commission Rates wilkin Senior Insurance Forum 1 12-31-2009 11:40 AM
Commission Rates in Michigan? todder Long Term Care Insurance Forum 1 04-16-2009 10:07 AM
Setting LTC Commission Rates as Independent dklauk General Insurance Agent Discussions 4 02-12-2008 10:26 AM



All times are GMT -5. The time now is 12:45 AM.

Forum enabled with vBulletin®
Copyright ©2000 - 2017, vBulletin Solutions, Inc.


Join the Forum - It's FREE

Share This Page



Weekly Poll

Where do we go from here? POLL
Nothing - No ACA fixes - status quo
29.82 %
HHS Rulings and band aid bills
17.54 %
Hail Mary repeal and/or replace bill
17.54 %
A bipartisan bill to fix ACA
35.09 %

Voters: 57. This poll is closed