How Do These Commisions Look?

logan · Post by **logan** » Fri May 06, 2005 8:27 pm

Hello all,

New and wondering how the following commisions look?

1st Application
WL 62%
Term 30%

2nd Policy (Same house hold-Wife and or Husband, child)
WL 57%
Term 27%

Then 2nd year 20%
third 8%
fourth 8%
fifth 8%

Long term care is
first year 15%
2 15%
3 15%
4 15%
5th year 8%

Annuity
1st 5000 4.8%
2nd 5000 3.2%
everything above 1.6%

Is this commision plan good? bad? Average?

Thank you for your input.

Dan the Insurance Man · Mon May 09, 2005 3:51 pm

You do not provide enough info to answer your question. If you receive ONLY commision and that's all then the commision is low. On the other hand often when you receive a commision on the level you referrenced you receive a tremendous amount of benefits added to the pay. For example, draw against commision, or a base salary. Importantly these companies sometimes even help you get started including getting licensed, group and one on one training, staff support, computor support, an office and a desk, phone and many other benefits that some take for granted. I would suggest you look into all the benefits to assure a true comparison as well as determining what amount of support you need?
If you are able to stand 100% on your own than you would qualify for the max commision. The more support you require is a trade-off in commision. Sometimes it is worth it to have the support...
Good Luck!
Dan the Insurance Man

logan · Post by **logan** » Mon May 09, 2005 5:36 pm

Thank you for the reply.

This is for the KNights of Columbus Insurance.

I would be a 1099 employe with all expenses on me. No salary but a draw/financing is provided. Health after 90 days at 470 a month, no Dental or vision.

The expenses would not be bad as the council am assigned to is only couple miles from house and most calls and appointment would be local.

Their selling point is that I would start with an "in" so to say. Calling on fellow members and all that.

The more I look at it I realize that the company really is not investing much in me (even need to lease one of thier laptops,pay for paper,stamps..etc) and this leaves me to wonder if its a good move.

Hmmmm....

sanddog · Post by **sanddog** » Mon May 09, 2005 9:25 pm

Logan, your wasting very valuable time, your commission is ether 10 to 15% new and renewal, or a split with a Broker 50/50% or 40/60 maybe 20/80% for your entire career. Dan the ins dude, made some good points. E & O and other expenses $$$$$$$$$$.......
The Knight of Columbus, that's a target market. And those guys are reluctant to part with their money. Your in no position to be attacking a target market. I will say it again, find a broker with lots of carrier's or hook up with State farm or allstate/farmers. Learn the business, you will not last one year with TKOC and that commission program, that horrible. <_<

logan · Post by **logan** » Tue May 10, 2005 5:42 am

I can see that K of C may not be a great move now. Basiclly I have all the expenses of an Independent and the only thing Iget in return is chance to sell to target market.

E &O is $20 per month.

The other thing that bothered me is the fact for finincing when I brought up that I wanted to see a contract he said "its no problem if you leave I'll look at what you have sold then we'll make terms from there."

Have an apointment today with my General Agent and going to for sure tell him I need to see a contract.

The company really takes no risk the General Agent who hires you pays the draw with his money/financing and trains you.

Boy the more I write the worse this looks!

logan · Post by **logan** » Tue May 10, 2005 7:36 am

How do the above commisions look comared to A.G.Edwards,Metlife and the like?

Know independent is far better but that would not take place for years as brand new to filed.

Thank you all again big help.

cenino · Post by **cenino** » Tue May 10, 2005 12:35 pm

Hello Logan,

Search more companies or ways to sell insurance.
I am an independent agent and have appointments with AIG, Allianz, Travelers, Western and many more. The minimun comm amount that I will accept is 90% and that's for helping with the underwriting response so that I have more time to sell. I f i do adds or leads the co-add and pay have or dollar amount per lead.
I work from home and receive internet leads, handle every single client by e-mail and mail, no lots of overhead only for my leads wich they pay of with one or two $1000 premiums.
Most of the companies out there offer 100 to 135% in comm look for them, an example is AIG.

Hope it helps.

brownlee · Post by **brownlee** » Mon May 16, 2005 11:30 am

I'm new to the insurance field only 2 years of internet sales thru a website that's not producing enough to stay in business. I'm considering opening my own agency because the problems I run into online were related to potential clients trusting a person on the phone who they couldn't see or didn't feel legit.

Would someone recommend where I can get E&O insurance for only 2 yrs of insurance experience?

Cenino, I would like to keep the internet website if you could share your methods/tips with a newbie would be a great help to me. I would love to sell via email/direct mail if I knew how to step up a system to do so.

logan · Post by **logan** » Mon May 16, 2005 2:50 pm

Thanks all for the replies.

Will do a follow up on the outcome.