250% Commission

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RickRoss's picture
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Joined: 2008-10-14

Why would a company pay someone a 250% commission on a new sale?  Is this due to the long-term value of the product based on renewals? 
 
What are typical commissions / renewal commissions to be expected on Supplemental Insurance products (life, health, disability, accident)?
 
Can someone expect to make $100k selling only supplemental coverages?  AND have weekend off?

bullinachinashop's picture
Joined: 2008-07-18

you're in a RR forum asking insurance questions. Maybe you should go to an Insurance forum.

RickRoss's picture
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Joined: 2008-10-14

bullinachinashop wrote:you're in a RR forum asking insurance questions. Maybe you should go to an Insurance forum.
 
Of the 72 posts you've made, how many were actually helpful?  This one sure wasn't.  I sure am getting tired of all the snotty friggin people who spend hours on here insulting people and bring absolutely no value to the forum.  Particularly to us new folk.
 
I think the right thing for you to do, would probably be to answer the questions asked and then politely suggest an alternate place to post such content.
 
"You can pay for school, but you can't buy class."

anonymous's picture
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Joined: 2005-09-29

Nothing is wrong with asking that type of question here.  I believe that the majority of registered reps are licensed to sell insurance.
A company would pay 250% commission if it is profitable for them to do so.   That being said, I don't know anything that pays 250% commission.   Insurance, depending on the situation, often pays in the neighborhood of 100% of the annual premium. 
 
Is it 250% of the annual premium or of the monthly premium?  If it's 250% of the monthly premium, it is actually a 20% commission. 

RickRoss's picture
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Joined: 2008-10-14

anonymous wrote:
Nothing is wrong with asking that type of question here.  I believe that the majority of registered reps are licensed to sell insurance.
A company would pay 250% commission if it is profitable for them to do so.   That being said, I don't know anything that pays 250% commission.   Insurance, depending on the situation, often pays in the neighborhood of 100% of the annual premium. 
 
Is it 250% of the annual premium or of the monthly premium?  If it's 250% of the monthly premium, it is actually a 20% commission. 
 
Anonymous, thank you for your value-added response.  That's a great question, and I'm not sure at this point.  The company I'm speaking of (Combined Insurance) I'm actually spending the day with some one today, so I should have more information later on tonight.  I will post again.

Provocative Put's picture
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Joined: 2008-10-14

As somebody who  has been involved in the hiring of thousands of registered reps I'd like to mention something.
 
If  your goal is to EVER catch on with a major firm you must be careful not to make a mistake in your choice of where to work early in your career.
 
I've never heard of "Combined Insurance" and I am troubled by the suggestion that they may pay 250%--I assume of first year premiums.  To an old pro--and I am proud to say I am an old pro, you can't get 37 years of Wall Street experience unless you're sixtyish.
 
Anyway, if I were looking at a resume that mentioned a place I had never heard of I probably wouldn't give it a second look.  If I did I might have somebody look into what the employer I did not recognize was all about and if it came to my attention that they pay 250% I'd deep six the resume.
 
Real firms are afraid to hire from places like that because the rep has been programmed to think that compensation such as that is somehow normal.
 
It's the same logic that almost always prevents kids who sign on with the chop shops from being able to make the jump to the "big league."
 
If your parents have never heard of the place you're thinking of going to work--don't go there.

henryhill's picture
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Joined: 2007-08-23

combined insurance sells an accident only policy in small towns.  Usually a guy spends the week in a hotel, collects the annual premium for existing policy holders and door knocks the rest of the town to solicit business.  Not for the long term minded person.

valuebroker's picture
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Joined: 2005-11-08
RickRoss's picture
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Joined: 2008-10-14

valuebroker wrote:
I would advise you stay far far away... the link does however provide a plethora of intertaining reading with stories of complete morons falling for a slick willy insurance firm.
 
 
http://www.ripoffreport.com/searchresults.asp?q5=combined+insurance&q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search%21
 
Very good information, sir.  Looks like many of these folks went through what I'm currently going through.  Looks like I'll avoid the scam, opt-out now, and not be forced off into leaving for training on Sunday after being told they never work weekends.

dbsdesk's picture
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Joined: 2008-09-21

If you don't ask, you don't have a chance of knowing and imho, all questions are fine anytime. Because you posted I learned about a company that was unknown to me.
BTW, I like your forum name, is this your website? http://www.rickross.com LOL!
 

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