Life Commissions

[c4yrslf12]

Hey guys. As an Indy, what do you recommend as a commission structure for yourself? As earned or up-front? What are the pros and cons? I guess it also goes for annuities as well (up-front vs. trails)?

I like up-front for obvious reasons (bulk of cash) but as earned makes sense to avoid chargebacks and level the income.

What else am I missing/neglecting?

My only experience has been up-front.

Any suggestions would be helpful. Thanks.

 

[Newby]

Hey guys. As an Indy, what do you recommend as a commission structure for yourself? As earned or up-front? What are the pros and cons? I guess it also goes for annuities as well (up-front vs. trails)?

I like up-front for obvious reasons (bulk of cash) but as earned makes sense to avoid chargebacks and level the income.

What else am I missing/neglecting?

My only experience has been up-front.

Any suggestions would be helpful. Thanks.

If you have the cash flow for it, as earned is best. But most people that have the cash flow are also good with their money so advances with a reserve account works well too.

On annuities if they pay WAY more money with trails, that looks good. I know some of the Great American Products pay over twice as much if you take trails compared to all upfront. That's pretty strong.

 

[anonymous1]

i do 6 month advancing on life, FE.... on annuities its really depends on the product... Great American i choose the three year trail ..... just look at the trail... see how many years it will take to overcome the 1st year lump sum. that will give you your answer and most of the time you can choose which option you want on annuities each time maybe take one lump sum if you need the extra money and trail the next ..

 

[Norwayguy]

If you have the cash flow for it, as earned is best. But most people that have the cash flow are also good with their money so advances with a reserve account works well too.

On annuities if they pay WAY more money with trails, that looks good. I know some of the Great American Products pay over twice as much if you take trails compared to all upfront. That's pretty strong.

I would need to look at Great Americans commission schedules again last time I looked ( granted I focused on fledxible premium products) it took to long to reach the same dollars with trails as all upfront with no trails and you would be way to close to the end of the surrender period.

 

[hammerken]

Personally I think trails are a bad deal. The only exception was back when I was wholesaling I would have brokers park money in C shares. Better payout than Money Markets.