Health Insurance Commissions at 32????

[HealthGuy]

Anyone heard of American Insurance Organization???? See their recruiting advertisement below....They promise commissions well above street level 20% if you recruit downline agents onto your team and over time build your own production and build your teams sales production as well...If you recruit enough agents on your team below you and you and they sell enough you can increase your commission percentages to over 30%. Can master general agencies like this pay well above street level commissions? I thought most carriers capped commissions at or around 20% max...Again, the idea here is like vertical marketing (or multilevel) insurance recruiting..the more you recruit and the more your team sells you can 'supersize' your commissions....Can these large insurance marketing organizations do this without getting in trouble with the insurance carriers because they promise such high commissions??? Here is the recruiting advertisement below...Again, I'm not saying this American Insurance Organization is doing anything wrong, I just don't know of many Master General Agencies or Independent Marketing Organizations promising commissions this high? Is this commission level sustainable?

Job Title: Sales Agent / Health & Life
Company: American Insurance Organization
Location: Chesapeake, VA
Job ID: 12260
Salary: Within Range
Job Location: Chesapeake, VA

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Job Description: Our Agents enjoy selling from the comfort of their own home, from both the internet and the phone. We provide you with the tools and train you to be efficient. Driving to appointments is a thing of the past, save some gas and help more people in less time! We are not your traditional health insurance Agency. Instead, we strive to turn Agents into Agencies. We will help you grow a team of your own. Up to 32% Commissions - Highest offered in the industry! 12 Month Advances - 12 months at 32% = 384% Commissions! Interest Free Advances - This is a TRUE Advance, NOT a loan! 5% Renewal Commissions - Highest offered in the industry! No Taken Rates - Same commission regardless of declines! 100% Vesting Immediately - Don't wait 10 years to get your money! 10+ FRESH Leads Every Day - Best lead program in the industry! Build Your Agency - Earn overrides on agents immediately! Non-Captive Contract - We'd rather captivate you with what we offer! Diverse Portfolio - Individuals, Groups, Students, Seniors, Uninsurables..! All Major Health Carriers - Start providing clients with options! Phone & Internet Sales - Stop wasting time & money driving! Contests & Bonus - Cash Prizes, Paid Vacations, and more! Agent Website - Allow clients to apply right through your website! Exceptional Training - We'll help you get a sale on your first day! Mentoring - Learn from agents who regularly sell 30- policies/month! A Health & Life Insurance license is required. Contact Bobby LeBrun in Virginia. (757) 593-8933 STATEWIDE OPPORTUNITY​

 

[Crabcake Johnny]

....just ripping these guys off:

United

 

[HealthGuy]

John: Although I do see some similarities, with AIO you are paid direct from the carriers and you own the commissions, even if you leave and the overrides on those you recruit, even if you leave...Its my understanding the only thing they don't want you doing is taking your agents in your downline and starting your own agency with them...IF you would happen to leave....Any more perspectives would be helpful please...I mean if they can pay well above street level 20% what is wrong with that? My main question is this: Do the carriers allow this inflated commission structure?

 

[Crabcake Johnny]

The carriers allow anything as long as they get apps. The issue with this system is finding other agents to write under you.

 

[Expat]

John: Although I do see some similarities, with AIO you are paid direct from the carriers and you own the commissions, even if you leave and the overrides on those you recruit, even if you leave...Its my understanding the only thing they don't want you doing is taking your agents in your downline and starting your own agency with them...IF you would happen to leave....Any more perspectives would be helpful please...I mean if they can pay well above street level 20% what is wrong with that? My main question is this: Do the carriers allow this inflated commission structure?

I used to write American Republic, for Pinnacle Benefits, they paid 32% No recruiting required.
Around 10 years ago I wrote for USA+, they paid 40%, I was a manager then.
A lot of B or C rated carriers in Texas will pay 30%.

Funny thing though, 7 years ago, I wrote Unicare through an FMO and I was paid 27%. Today I have a contract direct with Unicare which pays just 20%. Go figure.

 

[somarco]

Commissions have come down a lot in the last few years, including the lesser known carriers. If memory serves me, I had a 26% or 27% contract with Fortis as an agent (non recruiting). A few other carriers also paid in the mid to high 20's.

Now it is mostly the 2nd or 3rd tier carriers that pay that kind of money just to get their product on the street. From a consumer POV there is nothing spectacular about their product or network. Just another ho-hum plan from a no-name carrier.

They add in a few bells & whistles to make it seem like a good policy, but carriers like Mega do as well.

Bottom line, you have a product that really doesn't do anything more (and usually a lot less) than a good major med from a name brand carrier. The consumer is not any better off and probably worse off than buying something from Humana, Aetna or other well known carrier.

The only one better off is the agent . . . at least until the carrier pulls out of the market or gives 40% rate increases.

 

[Crabcake Johnny]

These companies also give agents false hope - they promote recruiting or "building a team" as if it was easy.

Agents focus on hiring and don't write. Most of the time it's too late when they come to realize they don't have those great overrides coming in.

Clue: If recruiting agents were that easy then why do they need you to recruit!

Recruiting is extremely difficult and quite expensive.

 

[HealthGuy]

Let me play devils advocate with you Somarco and John: See this AIO guys website: they don't offer second tier carriers at these high commission levels - these are all top tier carriers:

American Insurance Organization - Quality Health Insurance Options

And second, recruiting is done "virtually" meaning that you can have a downline that you train and support through online meeting tools - you don't have to recruit face to face or even someone in your own geograpy or state - all of the support is done through virtual online chatrooms - meaning their support network of those who recruited you is always there - they kind of have an 'always on' support network like the IHIAA

American Insurance Organization Agent Site

This website above facilitates online chat that is always on, kinda like Google Chat - meaning the agent who recruited you is always accessible through a Skype like VOIP chatroom(s) facilitated by the organization, American Insurance Organization..

I'm not promoting this, I'm just curious for opinions.

 

[moonlightandmargaritas]

Here's a universal truth:

The more layers you go through, the more fingers in the commission pie. Less for you.

Things like "free leads" will cost you dearly...

 

[somarco]

OK, so they have tier 1 carriers. So what?

How much does it really cost you for leads, a site, someone to do the recruiting for you, trips, etc?

If you say nothing, you have not done your homework.

There is a pony in there somewhere. Your job is to find it.