Can I get clarification please ...IMO's, commission, and residuals

[GoPokes]

When we say pyramid style agency we mean agencies where beginner level agents are allowed and even encouraged to recruit other agents under them.

I didn’t intent to refer to you negatively. I know you run a good business. I think everyone can see that pretty easily.

 

[Diana2024]

Yes. We openly talk about commission levels on this forum.

@Newby and @DonP Here are the commission grids I was given. Thoughts?

 

[Todd King]

They are all low.

 

[Diana2024]

They are all low.

I figured as much after speaking with you yesterday ... and based on what others here have said. Thanks for the feedback.

 

[Diana2024]

They are all low.

Quick question ... do carriers base commission for IMO's on volume of policies? Meaning, do you as an IMO get a higher amount from the carrier based on how much volume your agency is doing and so then you can offer a higher commission to your agents? So, a smaller IMO that may not have a lot of agents and so wouldn't do as much volume as a larger IMO, would the smaller IMO's get less from the carrier and therefore, pay their agents less commission. Hope what I'm asking makes sense. Thank you.

 

[Tahoe Ray]

Quick question ... do carriers base commission for IMO's on volume of policies? Meaning, do you as an IMO get a higher amount from the carrier based on how much volume your agency is doing and so then you can offer a higher commission to your agents? So, a smaller IMO that may not have a lot of agents and so wouldn't do as much volume as a larger IMO, would the smaller IMO's get less from the carrier and therefore, pay their agents less commission. Hope what I'm asking makes sense. Thank you.

Yes to the top half.

As far as paying an agent less, that's just greed.

Small IMOs can offer the same agent contracts as large ones. They often have less overhead too so their margins don't need to be as substantial.

That's not saying that always happens, but it should.

 

[DonP]

@Newby and @DonP Here are the commission grids I was given. Thoughts?

Moo You should be making a min of 120% to start. if you’re doing any vol you can get 130%. Gwic anyone will give you 115% on level and 75% on Gi . I havent written a gwic in 2 yrs and i got that. I’ll be honest . If you’re doing even medium business and have been with the imo a yr or so you should be able to get 130% with most contracts . Again if one imo doesn’t play ball look around . Most of the better producing imo’s are at 150% so even at 130% contracts they make 20% .

 

[jdeasy]

Yes to the top half.

As far as paying an agent less, that's just greed.

Small IMOs can offer the same agent contracts as large ones. They often have less overhead too so their margins don't need to be as substantial.

That's not saying that always happens, but it should.

Yes and no. About greed, I mean. Some IMO’s just don’t train well or support well so their agents lose more business, (persistency), thus they need a higher spread.

It’s dumb, but not greed.

 

[jdeasy]

Moo You should be making a min of 120% to start. if you’re doing any vol you can get 130%. Gwic anyone will give you 115% on level and 75% on Gi . I havent written a gwic in 2 yrs and i got that. I’ll be honest . If you’re doing even medium business and have been with the imo a yr or so you should be able to get 130% with most contracts . Again if one imo doesn’t play ball look around . Most of the better producing imo’s are at 150% so even at 130% contracts they make 20% .

That’s just not true.

Agents are not getting that across the board.

Anywhere. I’m not getting that and I’m in my 21st year and never not written 300 apps in a year.

I have one contract at 130%. Maybe 1 at 125%?

Only a couple at 120%.

And I almost never write those companies. Well, one at 120% I write quite a bit now.

I don’t know what you get. Not care. But telling agents 120% and more is readily available is just wrong.


And that’s FE. This is not the FE forum.

People certainly aren’t getting those levels on traditional life.

 

[goillini52]

Moo You should be making a min of 120% to start. if you’re doing any vol you can get 130%. Gwic anyone will give you 115% on level and 75% on Gi . I havent written a gwic in 2 yrs and i got that. I’ll be honest . If you’re doing even medium business and have been with the imo a yr or so you should be able to get 130% with most contracts . Again if one imo doesn’t play ball look around . Most of the better producing imo’s are at 150% so even at 130% contracts they make 20% .

Who are you using for GI...Corebridge?