In the Insurance Business who are you actually working for???

[Life Hawk]

maybe the highest?

That's a question I would want answered.

 

[Life Hawk]

How's about....................

The kids that watched him growing up have had kids now... So, so scary!

 

[Tahoe Ray]

So I'm still pretty green to insurance. Ive only be in the industry for a little over a year. Here's what I know about my current agency/upline, all my contracting went through another company (I'm guessing my agencies upline). The people that own my agency said that they do things differently compared to the rest of the industry. They put me direct to all the carriers at some high commission level, maybe the highest. I don't know. I know that compared to my previous upline my commissions went up double if not more. Example my life went from 45% to 95-100%, my annuities went from 2-2.5% to 4-7%. I believe Medicare is the same because they cant mess with that by law.

So what is my agency considered? And please forgive me, I'm still learning all these 3-4 letter abbreviations.

I understand I have to write a certain amount of business before I can get those levels and start my own agency, what are those levels on average? Is this required by every carrier? Can I go direct to them instead of through this upline company they use?

It sounds like you were just being hosed by your other agency. Your current agency sounds like a lot of other decent agencies. They might be called a "general agent" (GA) or a "brokerage general agent" (BGA). They appoint you directly with the carrier (as everyone should do...don't assign commissions unless you're an employee) and you are paid street comp (the highest advertised commissions by the carrier) from the carrier.

Speaking to the annuity side, you need a massive amount of production to go direct with most carriers (10s of millions in commitments, per carrier). That's why most agencies align with an IMO (independent marketing organization) to get access to all of the main players.

You can shop different IMOs to see who will offer you the best deal based on your production/potential.

If you're going to try and appoint downline agents at street levels (approximately where you are now), then you'll need above street contracts. For annuities, there could be 5 or 6 levels between street comp and the carrier (and in some cases, levels below street). If you produce enough (or promise to produce enough) you can make overrides off of the agents under you but what you make as an agency (or wholesaler, or general agent, or any of the other names the "middlemen" go by ) is going to depend on how close you are to the top.

More production=higher levels.

 

[goillini52]

The kids that watched him growing up have had kids now... So, so scary!

I wouldn't want to sit by him in a movie theatre...especially if he had his "special" popcorn box with him.

 

[Ryan S]

That's a question I would want answered.

Me too but they aren't very open to telling me. Dodge the question and tell me its very little. I find that hard to believe. Hence the digging on commission levels for an upline.

 

[Ryan S]

It sounds like you were just being hosed by your other agency. Your current agency sounds like a lot of other decent agencies. They might be called a "general agent" (GA) or a "brokerage general agent" (BGA). They appoint you directly with the carrier (as everyone should do...don't assign commissions unless you're an employee) and you are paid street comp (the highest advertised commissions by the carrier) from the carrier.

Speaking to the annuity side, you need a massive amount of production to go direct with most carriers (10s of millions in commitments, per carrier). That's why most agencies align with an IMO (independent marketing organization) to get access to all of the main players.

You can shop different IMOs to see who will offer you the best deal based on your production/potential.

If you're going to try and appoint downline agents at street levels (approximately where you are now), then you'll need above street contracts. For annuities, there could be 5 or 6 levels between street comp and the carrier (and in some cases, levels below street). If you produce enough (or promise to produce enough) you can make overrides off of the agents under you but what you make as an agency (or wholesaler, or general agent, or any of the other names the "middlemen" go by ) is going to depend on how close you are to the top.

More production=higher levels.

Yeah, I was definitely getting hosed by my other upline and this upline opened my eyes to that. When I got into the field I knew nothing about it and didnt know better. Some months later after networking I learned a lot about the back end of the business but I know there is a ton I dont know still.

I figured I needed a ton of annuity business to go direct. I know a few IMO's from just working in the field. I will have to shop around when I'm ready to breakout completely.

Is it easier to get above street level from Life and Medicare carriers once you have a proven track record of writing a lot of business?

 

[Ryan S]

All you guys have been awesome and sharing great information!! Thank you!!!

 

[Tahoe Ray]

Is it easier to get above street level from Life and Medicare carriers once you have a proven track record of writing a lot of business?

You should get street level for all products unless your upline is giving you leads or doing something extraordinary for you.

That level is normally the highest you can get without proof of production or production commitments.

 

[Newby]

So I'm still pretty green to insurance. Ive only be in the industry for a little over a year. Here's what I know about my current agency/upline, all my contracting went through another company (I'm guessing my agencies upline). The people that own my agency said that they do things differently compared to the rest of the industry. They put me direct to all the carriers at some high commission level, maybe the highest. I don't know. I know that compared to my previous upline my commissions went up double if not more. Example my life went from 45% to 95-100%, my annuities went from 2-2.5% to 4-7%. I believe Medicare is the same because they cant mess with that by law.

So what is my agency considered? And please forgive me, I'm still learning all these 3-4 letter abbreviations.

I understand I have to write a certain amount of business before I can get those levels and start my own agency, what are those levels on average? Is this required by every carrier? Can I go direct to them instead of through this upline company they use?

Your life commissions are still very low if you are talking about FE. And there is no law about paying agents lower commission on Medicare Advantage. Only rules about the max that can be paid. And some agencies take some or all of your Medicare renewals. You have to be aware of those things before you sign up with any Upline.

 

[Life Hawk]

Me too but they aren't very open to telling me. Dodge the question and tell me its very little. I find that hard to believe. Hence the digging on commission levels for an upline.

Think of what you would do or think if a prospect dodged a question that you were asking during a presentation...