Can someone tell me what "street level" means?

[Diana2024]

I'm newly licensed in Cali and just getting started ... this is also a whole new world to me so I'm sure I'll be posting with many ignorant questions until I can learn and get some experience behind me.

I've heard the term "street level" as it pertains to commission ... can someone please break down what this means? Thanks in advance.

 

[Newby]

You were hearing the phrase street level most likely. it’s a common term that agencies used to try to keep from telling you what your commission levels will actually be.
The only thing you need to pay attention to is the actual numbers on the page. Anything else they tell you like street level or highest commissions or anything like that it’s just nonsense to throw you off the track of the commission levels and comparing them between different agencies.
The harder an Agency makes it for you to see the actual numbers of the commission levels will be at the less likely you should go with that Agency.
Commission levels vary greatly from one agency to another. And street level at one Agency on a certain carrier product might be 50% and they’ll call that their street level and at a different agency. It would be 120% and they would call that their street level.
When in doubt always look at fexcontracting.com to get an example of what your commission grids should look like.

 

[ltcadviser]

To me, street level implies lowest compensation from a marketing agency. Bare minimum before an agent realizes that they can get more.

 

[Diana2024]

You were hearing the phrase street level most likely. it’s a common term that agencies used to try to keep from telling you what your commission levels will actually be.
The only thing you need to pay attention to is the actual numbers on the page. Anything else they tell you like street level or highest commissions or anything like that it’s just nonsense to throw you off the track of the commission levels and comparing them between different agencies.
The harder an Agency makes it for you to see the actual numbers of the commission levels will be at the less likely you should go with that Agency.
Commission levels vary greatly from one agency to another. And street level at one Agency on a certain carrier product might be 50% and they’ll call that their street level and at a different agency. It would be 120% and they would call that their street level.
When in doubt always look at fexcontracting.com to get an example of what your commission grids should look like.

Thank you for correcting me. I felt like "street value" didn't sound right but I couldn't remember the correct term. I corrected it.

When you say to pay attention to the actual numbers on the page ... am I supposed to get a commission grid from my IMO like you mentioned with fexcontracting.com? I want to make sure what to ask for from an agency when it comes to discussing commission. I checked out fexcontracting.com's commission grid.

So, when you say street level at one agency can be 50% and 120% at a different agency ... would this be for the exact same product?

I appreciate your feedback.

 

[DHK]

When you're looking to join an agency "off the street" (ie. no prior production history), that's the standard commission contracts they offer.

Keep this in mind:
- The higher the benefits & hand-holding, the lower the contract commissions will be.
- The lower the benefits & hand-holding, the higher the contract commissions *may* be.

 

[Newby]

Thank you for correcting me. I felt like "street value" didn't sound right but I couldn't remember the correct term. I corrected it.

When you say to pay attention to the actual numbers on the page ... am I supposed to get a commission grid from my IMO like you mentioned with fexcontracting.com? I want to make sure what to ask for from an agency when it comes to discussing commission. I checked out fexcontracting.com's commission grid.

So, when you say street level at one agency can be 50% and 120% at a different agency ... would this be for the exact same product?

I appreciate your feedback.

Yes for exactly the same product. The only difference between the ones that give you the low commissions and the ones that give you the higher commissions is a lot of extra middle men that are taking a cut of your commission.
What you have to do is contact several different agencies at least for tell them to send you in PDF form the commission grids for the companies that you would be selling with them. You want to see first year and renewals.
Commission isn’t the only thing to consider. But it’s a huge one. If you really like one agency the best and they are 5-points down, that’s no big deal. But much more than that and they better really have some magic beans or something.
Very commonly the places with the lowest commissions also have the worst training, worst leads and they won’t release you when you want to leave.

 

[Jim Wright]

To me, street level implies lowest compensation from a marketing agency. Bare minimum before an agent realizes that they can get more.

I'm sure that applies to some lines of business but if you're talking health, Medicare and ACA have "street level" commissions that are standard to the market if they weren't with an upline.

 

[Tahoe Ray]

Street "should" be the highest agent comp without any production/production requirements.

Some carriers, at least in my world, will literally use the word "street" on their commission agreements when you download them.

That said, as Newby pointed out, some agencies like to get creative with the word "street" as "their street" which is not a thing. It just means that you're getting the shaft.

I've renamed all of our agreements. You start at street (below that is road, and LOA agents are set up as cross bronx expressway) but then you can move up to avenue, drive, and plaza.

 

[Jim Wright]

Street "should" be the highest agent comp without any production/production requirements.

Some carriers, at least in my world, will literally use the word "street" on their commission agreements when you download them.

That said, as Newby pointed out, some agencies like to get creative with the word "street" as "their street" which is not a thing. It just means that you're getting the shaft.

I've renamed all of our agreements. You start at street (below that is road, and LOA agents are set up as cross bronx expressway) but then you can move up to avenue, drive, and plaza.

I used to live near the Cross Bronx Expressway and if you're using that analogy, it sounds like the LOA's would be paying to write policies!

 

[Tahoe Ray]

I used to live near the Cross Bronx Expressway and if you're using that analogy, it sounds like the LOA's would be paying to write policies!

I was a carrier rep for over a decade and covered Manhattan/the boroughs/LI/Westchester. That is the single worst expressway in America. And I've lived in LA too. Nothing compares.

Just like unless you're an employee of the agency (or forced on the health side), LOA is the single worst contract you can get.