Is It Normal to Be Paid Commission MONTHLY?!?

InsuranceBrah

Expert
40
I just closed my first case as an indie and built up some serous expenses between my E&O, Licensing Costs, CRM, ect. I was really looking forward to that $300.00 check which is roughly 90% commission through Mutual of Omaha. I'm already in the process of switching brokerages because the service at One Resource group sucks, and Ash Pays better. But now I run into this on one of the cases I placed with them.

After waiting for my check and following up with them this is what I get

"United of Omaha has a $25.00 minimum to pay commissions. You have $22.91 pending to pay on the XXXXXXXX case so when the next premium is paid, you should be over the minimum to pay and commissions will release for the 2 payments.

25.45 prm x.90 rate = 22.91

Is this normal? I can't see making a living while building my business getting paid peanuts like this. Maybe down the road it could build up. But I've got expenses now! I don't have time to wait a year to recoup the money I put in. I received no indication that I would be paid monthly. Is this a mutual of Omaha thing? If that's a case I better be seeing a freaking years worth of interest on top of the money I'm to be paid.. WTH

What Solutions do you have for me?
 
Are you signed up for advances? Did they pay by auto draft?

Money is drafted from the clients bank on a monthly basis. I didn't think about setting up advances. In the captive space Advances were cases that paid a certain percentage before the underwriting was finished. It was part of a financing program. I was under the impression that getting paid annually was the standard.

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get your client's to pay annually........

Was that sarcasm? Most Final Expense clients can barely afford to pay monthly
 
You get paid by companies based on the payment mode your client selects. Some companies will annualize commissions to a certain extent, and your bga Ash in this case has to sign off on it.

Good luck.
 
Money is drafted from the clients bank on a monthly basis. I didn't think about setting up advances. In the captive space Advances were cases that paid a certain percentage before the underwriting was finished. It was part of a financing program. I was under the impression that getting paid annually was the standard.

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Was that sarcasm? Most Final Expense clients can barely afford to pay monthly
If you're talking about Living Promise, then you're below street commission. (110%)

Sounds like you need a better upline. Study the FE forum.
 
If you're talking about Living Promise, then you're below street commission. (110%)

Sounds like you need a better upline. Study the FE forum.

We'll between the bad service and that, it's why I was switching from ORG to ASH. Now ash offers 100%. However upon calling them they don't offer advances at all where ORG will if I ask. Which I was unaware I needed to do since in the captive space advances are normal. I've always been paid annually and had no clue you could even be paid monthly.

Im in talks with Brokers Alliance who said they offer advances, but I'll have to talk commissions with them tomorrow.

So where are people finding the mystical 110%+ payout? To my understanding mutual of Omaha only appoints through a marketing organization. Wouldn't they always get their cut so to speak?
 
I just closed my first case as an indie and built up some serous expenses between my E&O, Licensing Costs, CRM, ect. I was really looking forward to that $300.00 check which is roughly 90% commission through Mutual of Omaha. I'm already in the process of switching brokerages because the service at One Resource group sucks, and Ash Pays better. But now I run into this on one of the cases I placed with them.

After waiting for my check and following up with them this is what I get

"United of Omaha has a $25.00 minimum to pay commissions. You have $22.91 pending to pay on the XXXXXXXX case so when the next premium is paid, you should be over the minimum to pay and commissions will release for the 2 payments.

25.45 prm x.90 rate = 22.91

Is this normal? I can't see making a living while building my business getting paid peanuts like this. Maybe down the road it could build up. But I've got expenses now! I don't have time to wait a year to recoup the money I put in. I received no indication that I would be paid monthly. Is this a mutual of Omaha thing? If that's a case I better be seeing a freaking years worth of interest on top of the money I'm to be paid.. WTH

What Solutions do you have for me?

I second what Stibroker said. Encourage your clients to pay annually. It is often in their best interest to do so.

Here is an excellent tool that will be your best friend in encouraging client's to pay monthly. I use this exact calculator every time I present the premium options to a client.

You'll be surprised how quickly folks can come up with annual cash when they see the effective APR they are being charged to pay monthly, quarterly, or semi-annually.

The best thing you can do is put the information in front of the client and let him/her decide. But, practically speaking, there is no better way to encourage annual commissions than showing the modal factors as an APR.

Good luck.

Congratulations on going indie, by the way. With all due respect to captive agents, I'm convinced that doing so is imperative if you truly want to put the client's interests first.

It is very tough getting weened off those annualized commission though! You'll make it though. Just keep at it. The monthly commissions actually build up faster than you think and they start to make it easier to think more clearly about each case than when you're shooting for the next one-time rip to pay the bills.
 
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Yeah I definitely understand the value of residuals. The problem is I paid out for so many expenses and have bills now. So this screwed me hard. Lesson learned.

That and my goal was to sell life for the big up front commissions and use p&c to bring in residuals, which I'm writing with an agency.
 
So where are people finding the mystical 110%+ payout? To my understanding mutual of Omaha only appoints through a marketing organization. Wouldn't they always get their cut so to speak?

If you're doing final expense. Don't try to figure this stuff out on your own.

Hang out in the FE forums for a while and you'll find out who the real players are.

Don't just sign up with any marketing organization. You want to upline (mentor) with someone who still writes big numbers week in & week out and has the heart of a teacher.
 
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