High Contract Levels Vs Large Spread

[Newby]

What if he was willing to sacrifice half of his commission in the beginning for the long run? If you want to just produce, then yeah maybe an imo with higher commissions would be right for you. If you want to recruit and eventually pull out of the field, then maybe a company structured around a lower commission in the beginning with realistic opportunities for raises every 2 months would be a better option. Not trying to say one is right and one is wrong, maybe each is geared toward different things. And I've seen agents produce and make a decent living if they can write 4-5k per week, even on a 60% contract.

What would be the attraction for the producers to give up thousands of dollars of their commission? Why would they stick around?

A guy who writes 4000 a week on I 100% contract makes $4000. That same guy that rides 4000 a week on I 125 contract makes $5000. What would make him want to give up $1000 per week?

 

[rousemark]

Some Lincoln agencies require you to maintain and write 8K or more a month. Which isn't much, but if you don't they take your entire team and you have to start from scratch.

If you are saying 8k personal production isn't much, you should be made aware of the fact the vast majority of agents do not produce 96K per year.

As far as recruiting, you can recruit with almost any company.... You can get a 125% contract with an IMO and recruit a downline on whatever level you want. The only difference is, you are in control, not LH or some other company. If an agent is going to require a lot of hand holding, you can start him on 80%,, if no hand holding required 105%+. Build a track record and them get your own IMO contracts.

 

[WinoBlues]

If I was starting out and had an I to recruit why would I start with you at 80% and try to bring people on at 65%? Why not start with Newby at 125% and start my and your people at 85%?

 

[solinor]

What would be the attraction for the producers to give up thousands of dollars of their commission? Why would they stick around?

A guy who writes 4000 a week on I 100% contract makes $4000. That same guy that rides 4000 a week on I 125 contract makes $5000. What would make him want to give up $1000 per week?

Newby the incentive to stay is so you can build an agency and leave the field. I personally don't want to produce until I'm 65 y/o. Sacrifice in the beginning for the long term.

 

[Newby]

Newby the incentive to stay is so you can build an agency and leave the field. I personally don't want to produce until I'm 65 y/o. Sacrifice in the beginning for the long term.

It doesn't make sense though. If you can recruit agents on 85% contract why couldn't you recruit the same agents on 125% contract?

If there something about you that will encourage agents to write business on low contract levels why wouldn't you want the largest contract level that you can get?

I'm missing something important here. I don't get it.

 

[GreenSky]

I'm missing something important here. I don't get it.

It's pretty obvious you're arguing with someone who hasn't sold 10 policies in his lifetime. Why bother?

Rick

 

[solinor]

It's pretty obvious you're arguing with someone who hasn't sold 10 policies in his lifetime. Why bother?

Rick

Must we resort to personal attacks when all I'm trying to do is start a discussion? I've been averaging 15-20k per month for the past 6 months since I started in insurance and about to hit 75% contract. I'm doing pretty well for myself, just wondering why a lot of agents on here are so much against a system that rewards you with more/higher overrides compared to a system where you get a higher commission based on personal production. If you can tough it out the first year, I'd rather retire from the field than have to produce forever. This is all I'm saying.

 

[Newby]

It's pretty obvious you're arguing with someone who hasn't sold 10 policies in his lifetime. Why bother?

Rick

Because it's obvious that he's been to one of the rah-rah sessions from one of the real bad places and has drank the Kool-Aid.

That doesn't mean it's not too late to help him and help him avoid the Life lesson he's about to get.

I can't figure out how they can twist them around so much that they honestly think that recruiting on a low contract level is the way to build their retirement. I must be holding my calculator upside down again.

 

[GreenSky]

Must we resort to personal attacks when all I'm trying to do is start a discussion? I've been averaging 15-20k per month for the past 6 months since I started in insurance and about to hit 75% contract. I'm doing pretty well for myself, just wondering why a lot of agents on here are so much against a system that rewards you with more/higher overrides compared to a system where you get a higher commission based on personal production. If you can tough it out the first year, I'd rather retire from the field than have to produce forever. This is all I'm saying.

I stand corrected. You sound like someone that doesn't understand that 110% is a bit higher than 75%. Many recruiters make that mistake as well and many agents get screwed in the meantime.

If you get a 130% contract and offer agents 90-100% at least you won't be cheating them like you're being cheated.

You might look into Primerica. You would be perfect.

Rick

 

[Gooner]

You guys are funny. You're arguing with a guy who found his job through Craigslist...you do realize that right?