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Lower Commissions on Health Are Knocking on the Door

al3 said:
Quiet day here so I thought I'd drop in for a while.

I find it interesting that there is so little anger here about what in some cases (i.e. Anthem CA) is a 55% cut in income.

I also find it interesting that people here are echoing the exact message (I prefer to call it "spin") that the carriers are putting out on webinars and emails... that all you have to do is WORK HARDER AND LONGER.

That's exactly the "mindset" that the carriers have hoped for... that you folks will be willing to work twice has hard and long to get what you had before.

And I find it interesting that some of the folks here who are giving us the happy-talk message of "Not a big deal, keep working, and work more, and don't worry" are people who may have a vested interest in current system being perpetuated... they make money off of leads, or they recruit, or they have associations, or they work for GAs etc.

If IFP at 9% FYC with a 3% renewal is sustainable for your lifestyle, that's great. If you WANT to work a lot harder and longer ON THE CHANCE that you can stay at the same income level you are now, then go for it. You will have all the encouragement you need from many people here as well as your favorite carrier and/or GA.

But here is the truth, as I see it. It seems to me that many of you are saying "I lose money on ever sale, but I make it up on volume."

And what I don't understand is why do so many of you WANT to work for 9% in health when you can work just as long (and hard?) and get 90% in life products as well as a lot more than 9% for other coverages?

I'm not telling anyone what to do. If you want to stay totally focused on IFP health products, knock yourself out. But there are better options for most of us. Yes there is a learning curve, but I think it will be much easier than having to work your $#@ off just to maintain what you have now.

I have no doubt that the top execs at the major carriers sat around a table and debated the issue of "How much can we cut comp on agents and still keep them selling?" My guess is someone said "Let's go for 55% and follow the reaction on the chat boards. Agents are pretty stupid. We can spin this thing and they will buy in. They are like sheep anyway."

They were right.

But I wonder what might happen if every agent called or wrote their carrier rep or their GA or the CEO of the company and said (respectfully and politely, of course) that they would no longer be writing health insurance because it was economically unsustainable given other options available.




Al
Click to expand...
al3-
I think you're way off here. No one is happy about the significant commission cut. But we are pragmatic. I can absolutely live with the commission cut, and would be thrilled if that all there is down the pike. I feel confident that I am able to thrive in the current environment. Twenty-five years ago, I started in life/annuity sales. Still in that business. But there is nothing, and I mean nothing like getting health care renewals month after month after month. What are your life renewals?
 
Quotebroker said:
Trying to balance my hatred of being the Internet spelling police with my love of irony
Click to expand...

Yeah people it's called a learning disability, lol......dyslexia?

You should see me with numbers, oh gawd...ha.....I am bad with
taking down cc #'s , always get those mixed up...
 
al3 said:
Quiet day here so I thought I'd drop in for a while.

I find it interesting that there is so little anger here about what in some cases (i.e. Anthem CA) is a 55% cut in income.

I also find it interesting that people here are echoing the exact message (I prefer to call it "spin") that the carriers are putting out on webinars and emails... that all you have to do is WORK HARDER AND LONGER.

That's exactly the "mindset" that the carriers have hoped for... that you folks will be willing to work twice has hard and long to get what you had before.

And I find it interesting that some of the folks here who are giving us the happy-talk message of "Not a big deal, keep working, and work more, and don't worry" are people who may have a vested interest in current system being perpetuated... they make money off of leads, or they recruit, or they have associations, or they work for GAs etc.

If IFP at 9% FYC with a 3% renewal is sustainable for your lifestyle, that's great. If you WANT to work a lot harder and longer ON THE CHANCE that you can stay at the same income level you are now, then go for it. You will have all the encouragement you need from many people here as well as your favorite carrier and/or GA.

But here is the truth, as I see it. It seems to me that many of you are saying "I lose money on ever sale, but I make it up on volume."

And what I don't understand is why do so many of you WANT to work for 9% in health when you can work just as long (and hard?) and get 90% in life products as well as a lot more than 9% for other coverages?

I'm not telling anyone what to do. If you want to stay totally focused on IFP health products, knock yourself out. But there are better options for most of us. Yes there is a learning curve, but I think it will be much easier than having to work your $#@ off just to maintain what you have now.

I have no doubt that the top execs at the major carriers sat around a table and debated the issue of "How much can we cut comp on agents and still keep them selling?" My guess is someone said "Let's go for 55% and follow the reaction on the chat boards. Agents are pretty stupid. We can spin this thing and they will buy in. They are like sheep anyway."

They were right.

But I wonder what might happen if every agent called or wrote their carrier rep or their GA or the CEO of the company and said (respectfully and politely, of course) that they would no longer be writing health insurance because it was economically unsustainable given other options available.




Al
Click to expand...

AL3
IMO this has to be one of the smartest analytical posts I have read on this forum to date. I agree with you 100%. It just can't be any further from the truth IMO.
The fact is, if there was any other profession these guys would do, they would jump in a minute to do it but this is all they know. It's either this or flipping burgers at Burger King for some. Al you nailed it on this one. I have nothing further to add because you really did hit every point precisely and honestly again IMO.
 
0b1kanobee said:
AL3
IMO this has to be one of the smartest analytical posts I have read on this forum to date. I agree with you 100%. It just can't be any further from the truth IMO.
The fact is, if there was any other profession these guys would do, they would jump in a minute to do it but this is all they know. It's either this or flipping burgers at Burger King for some. Al you nailed it on this one. I have nothing further to add because you really did hit every point precisely and honestly again IMO.
Click to expand...

strange this poster and AL3 appear to have the exact same ip address. hmmmmmmmmm:1mad:
 
Hahaha
Al has a point though. How many dentists do you know would continue to practice if next week they were only allowed to charge 1/2 of what they were paid before? They would all go on strike I would think. You would at least hear about it on the news. It would be great for consumers. What has happened to agents has received no media attention and most agents will sit back and take it. How many real estate agents do you think who actively sell, would continue to do so if next week they could only charge a 3% listing fee vs. say 6%?
 
al3 said:
And I find it interesting that some of the folks here who are giving us the happy-talk message of "Not a big deal, keep working, and work more, and don't worry" are people who may have a vested interest in current system being perpetuated... they make money off of leads, or they recruit, or they have associations, or they work for GAs etc.
Click to expand...


Al nailed it and the posts to the contrary are a freaking joke. Somebody had to say it, and he did, the end.
 
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