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Actually it's not a % of the annualized it's a % of the monthly premium. So no mind tricks. I can see where you're confused though. It's a new concept. However, 100% profit with zero investment now that's pure capitalism at it's finest my friend.
Yes but they present their percentages in this way to mask just how bad their comp is.
The rest of the industry talks about comp rates on the annual premium. For example, a street level contract of 120% applies to the annual premium of a case. If you sold a $50 per month case, you would earn $720 in commission (50x12x1.2).
When you say you get 220% of the monthly premium. Here's how that breaks down. A $50 case would earn you $110 in commission (50x2.2). That really translates into about 18% commission on the annual premium.
You're getting raped even though they give you leads at no cost.