Understanding Life Insurance Earnings

Welcome back to the channel. Here are five ways... Let's go! ...to show you how the money works selling life insurance. My name is Jalen. Come on, y'all know who it is. Mike. All right, guys. So, we're going to hop right into this video. We want to first talk to you guys about how do you structure yourself when you come into the business. And there's two different ways you can do. 1099 agent or an LOA agent. You see, a 1099 agent is somebody who says, you know what, I got enough confidence in myself, I want to find an IMO or an agency that I can work with and get paid commissions directly from the insurance carrier to my bank account. Yes. In your account. In your bank account. 110 PNC, Wells Fargo, it doesn't matter, right? And the beautiful thing about the 1099 agent is that you're getting paid direct from the insurance carrier that you write the business from. within the next 24 to 72 hours directly in your account after you get a policy issued, okay? Now you have an LOA agent. An LOA agent is somebody who wants to come in and go the intrapreneur route where they are working underneath the umbrella, specifically like an agency, and you don't get your commissions paid from the insurance carrier. The agency will actually pay you. So let's say, for instance, you guys decided to go out there and work for ABC Insurance Agency. You will go LOA to that specific company. Any policies that you write will go to that agency, and then they will pay you a commission. Okay? You guys are probably wondering, well, Jalen, which one do you prefer? Right? I'm going to pass it to Mike. Mike, which one would you suggest for a new agent coming in? Honestly, either one of them. Both of them are very, very lucrative. It depends on what you want. If you go LOA, you're going to probably have no lead costs or no AKA marketing costs. So anything you write is pretty much profit for you. Wow, that's good. So that's a benefit there. And also with the LOA model, you're going to probably get really, really good training because you're using someone else's marketing money. So they don't want to waste their money. So they're going to make sure you get the best, best training to make sure when you go out there and see the client, you're getting. the maximum result so that's good LOA model is cool because you're going to learn quicker you're going to learn more efficiently you don't have to spend any money out of pocket and you know you're pretty much making all money there yeah broker sorry 1099 route it is going to be um a little long long-term goal for an agent is that you know you gotta spend money usually on marketing leads stuff like that um You do get to own your own book of business. Which is good. So all the clients you write up are all your clients, typically. And then also the 1099 route, you have more flexibility. You get to actually create your own schedule. You get to actually get paid by the carrier directly. And the training should still be really good. Keyword, should be. Should. Depending on the agency and the group you work with. It should be very hands-on. It should be very... very very good as well so you know no bias but me and jim were both 1099 agents we both started out as 1099 agents but we do know some other folks that are also loa as well like i said both very very lucrative yeah so you just have to figure out which route you would rather take loa or 1099 1099 just a quick summary you're going to have to pay for all the marketing costs up front for leads sometimes for training right You have to cover the cost up front. The commissions are typically a little bit higher because you do have to cover the cost. LOA, the insurance carriers pay your agency that you work with, and then the agency pays you out. You don't have to worry about any upfront marketing or any costs for leads. The commission is a little bit lower, but again, you have to factor in the fact that you're not paying for the marketing, which is a big bulk of how to actually make money in this business, all right? Let's move on to the next topic. Next one. All right. Next one is going to be captive or broker. So captive route is going to be you're pretty much with just one company only. You can only sell that one company's product. But that does mean that with you only selling that one company's product, it's so much easier. You know, you only got to do is learn one company's underwriting, their systems, their processing. You should get really, really good training. The comp level is usually a little more lower, but you typically do get free leads as well. Yeah, and that's beneficial if you are a captive agent, right? There's no bias here. The perks of being captive is you get all these extra benefits of working with one company. Like the benefits is how stress-free it is when it comes to trying to learn 15,000 other products as an insurance broker. Now again, the downfall is, unfortunately, your commission is lower, right? To go on 40, 50, sometimes 60%, depending on the company you decide you want to work with. But again, they still are covering all your marketing. all your leads for you. We know people in the insurance business who are captive and they're making multiple six figures as well. You just have to figure out if that's the route for you. And they had great bonuses being captive. That's true. And also with chargebacks, it's actually easier to deal with because you are captive. Correct, yeah. And on the back end, their renewals are a little bit higher just because your commission's a little bit lower on the captive side. So on the renewal side... you do start making a little bit more money because you are working with one company. But the downfall also being captive is that let's say the client can't get approved with that company you're with, being a captive agent, they couldn't have lost out on the sale. Now you got to push it out to a broker. Yeah. You know? Yeah. And it's unfortunate when that happens. So you just have to figure out which one you want to work with. Let's talk about brokers, right? I know Mike kind of smiled a little bit because he loves the broker route. Yeah. Right. So as an insurance broker, me and Mike are insurance brokers. We actually work with a ton of different carriers. We wouldn't recommend that you get 50,000 carriers either. But as an insurance broker, the number one luxury you have is making sure that your client is always covered. For me, I don't have to worry about if my client is unhealthy, if we can get them covered or approved or not. It's simply which route do we want to take that's going to best assist this client with their situation. All right, so Mike, talk about the benefits of being an insurance broker as an agent from the financial side. So you usually get a higher comp. You're able to pretty much service any client's needs, 20 years old, 30 years old, 80 years old. Whether you want an annuity, term, whole life, IUL, you have more options. You usually do get to own your book of business. So you do if you do leave that brokerage company you can go to different brokerage and all your clients should move along with you. You have usually more flexibility of time. It's endless benefits I would say. But like I said before the captive route, I do believe the training is going to be better. So you're looking for like hey Mike I need the best of the best training. The captive route will probably be better. Now the broker route, you can find some great training. Yeah, true wealth. All right, you could find some good training, but just letting you know there's some brokers out there that are just recruiting at a high level and they just want to just get in a lot of people and the training kind of just falls off. Yeah, and that's one thing I would recommend too is that when you are looking to become an insurance broker, you have to figure out, okay, cool, is this guy offering me a high comp because I have no experience? You have to be thinking to yourself, okay, why is this guy offering me such and such, like a super high comp? Typically for those people who are offering high comps at that level, there is no training structure there. So you have to literally fend for yourself to figure out how to actually become profitable and work this business. Now, if you work with us here at True Wealth, we have trainings every single day, role playing every single day, one-on-one calls. So you don't have to worry about that with us. But for the vast majority of brokers and agencies out there, you have to do your research to make sure that they're offering you the best training possible to help you succeed. Now, being a broker as well, opposite of the captive side, being a broker, you do have the ability to work yourself up to a higher commission level. 60, 70, 80, 90, 100, 120, 130. You know what I mean? It goes up there. It goes up there as well. So yeah. The next one. So we're going to actually get down to the nitty-gritty of how you do get paid as a broker or even as a captive agent will be advanced commissions. So advanced commissions is literally what it says. You're getting advanced your commissions to you off of good faith that, hey, Mr. Michael on the phone watching us right now, hope you're eating your frosted flakes. They're going to advance you, your money to you up front. because they trust you. Typically a nine month advance, they're going to advance you. So let's say for instance, the client is paying $1,000 in the year in total premiums. The insurance companies are going to come to you and say, hey, hey Roger, we're going to trust you and advance you 75% or nine months of this $1,000. So you're going to get paid $750 within 30 days of making that sale. But that's going to be based off of the commission level is at 100%. Correct. So whatever contract level you're in, just for easy numbers, we were just saying for 100% contract, right? So you just have to understand that you are going to get advanced as money. So just know that when you get advanced as money, That is your money. You can spend it, but you really want to make sure you're being diligent with the money and not blowing it. Reinvest it back into your business. You also want to put some reserves away for chargebacks as well. In case a client does fall off the books, you can just pay it back either by writing more policies or if you want to pay it out of pocket, you can do so as well. And let's go into some more extra details if we can, Jalen. So let's say average client is paying about $80 to $100 a month. for their life insurance policies with us, average. So I'm paying a lot more, so I'm paying a little bit less. So with them paying, let's say, $100 a month, times that by over a course of a year is 12 months. That's $1,200 they're paying for their policy. Now, the insurance company is going to say, hey, we're going to pay you nine-month advance. Nine months out of 12 months is 75%. Yeah. Three-fourths of the year. So at 75%, off of the client's annual premium will be advanced to you now because the client got approved today now on their insurance policy. Correct. So you take the annual premium of the client, times it by your commission level, where you're at, hope it's 100% or 80% or above, right? And you would times that by the 75% advance. And that's what you get your income into your bank account the next day, next few days, next few weeks. Perfect. Perfect. So let's move on to the next point. The next point is one of my favorite. We call this mailbox money. There you go. Right. That's what Nipsey Hussle said. Mailbox money. That's what we're all looking to accomplish at some point in time. And under mailbox money, there's two different ways that you get paid. The first way is through back in pay. Right? You guys are like, Jalen, what are you talking about? Back-end pay. You can pay back-end pay multiple ways in insurance? Yes. So here's the beautiful thing about back-end pay. So we just told you that the insurance companies are going to advance you 75% of the policy premium, annual premium, that your client is paying. Now, for some of you geniuses on the line, you guys are probably wondering, well, Jalen, where's the other three months, 25% going? That's where the back-end pay comes in. So the insurance company is going to say, hey, just because we advanced you 75%, we still owe you that extra 25%. And they're going to pay you that extra 25% the last three months of the policy effective year, right? So a month 10, 11, and 12, they're going to divide that 25% up into those three months. So let's say, for instance, the insurance company owes you, still owes you $300 from your advance. You're going to get paid $100 in month 10, $100 in month 11, and $100 in month 12. That's the money that I like because you'll just wake up one Saturday morning, wake up one Friday, and you just have thousands of dollars in your account because you were a great agent and you signed up 20 policies that month and all of them stayed on the book. And you get hit with $2,000 in month 10, 11, and 12, and you're wondering where this money's coming from. That's the beautiful thing about this business. You're going to forget about that money coming in on the back end and boom, it's going to just show up there and now you can go on a vacation. Right. Let's talk about the next one, right? Which is after back end pay, we have something called renewals. And this is the client paying for their policy after year one. Correct. And you said the back end pay is the client paying for their policy, like I said, throughout the whole entire year because the advance pay is the client paying for their policy. is what you got for the first nine months of the client paying for their policy off of good faith correct like clients are paying for the last 12 months now month 10 11 12 yeah they got the back end pay correct now we're into the client paying for the policy now in month 12 13 and beyond correct so yeah so yeah so renewals is very important too when it comes to this business because this is what you get when you're just asleep you don't have to worry about Making money because you just got money coming in month in month out. Yeah, right. So let's give some numbers A typical renewal off of life insurance policies is around five and a half percent. Okay, some carriers will pay renewals for the rest of your life, some will pay for 10, 15 years, but that five and a half percent is the industry average on what you're going to be getting paid in renewals. So let's say you signed up 150 families in a single year, and let's just say that your pay, your commission, for that year was roughly around $100,000. Okay. The insurance companies are going to pay you five and a half percent of a hundred thousand, because that's how much annualized premium you wrote that year. So that's going to be roughly around $5,000 every single year that you will get paid from the insurance carrier. And again, that's $5,000. annually, not monthly, but it's annually, right? Crumbs make a cake, trees build a forest. When it comes to renewals, this is what's going to cause you to start being able to make a lot of money quickly. And by time year five or year 10 come, you'll be able to pay all your bills and live off your renewals if you do it absolutely correct. And obviously, when it comes to Medicare, that's a different story. Medicare is different. We're going to talk about that in another one. All right, next one. Building a team, also known as override. So you can then, as an agent in an insurance business, you can be a sole producer, or you can also build a team by saying, hey, I'm with a great organization named True Wealth Financial. They do things really good there. You should come and join us because this is a great opportunity for you to make some extra money as well. I know you don't like your job because of the time you're putting in or... the low income is paying or you're because you're just missing out on all your family's football games your child's football games so come join us so by you doing that as an agent already on the agency you can put that agent underneath you let's say you're at a hundred percent commission level and the agent beneath you that you brought into your team your downline to call it is at an 80 commission level you The agent on an 80% commission level, they say they do $10,000 in sales in one month. Good. Beautiful. Amazing. You're at 100%. They're at 80%. That's a 20% gap there. They do $10,000 in sales in one month. You make 20% of that $10,000. That's $2,000 you make. Correct. Let's say you had 10 of those people. That's $20,000 a month. Wow. And it goes on and on and on to having 100 agents underneath you. Correct. And that's the key part about being an insurance broker and building an agency. Those are key factors that you have to pay attention to because where you decide to plant your flag, what agency you work with, you have to understand they are making an override off of you. So if they're not offering you the training that you need to be successful, you need to find a new home because they are making that income gap off of you, right? So it's very, very important for you to find a home that can recognize what you're doing and give you the training that you need to be successful. All right. The last two guys are going to be company bonuses and incentive trips. So with the carriers we work with, if you write a certain amount of production with them, let's say 60, 70, 80K a year with that one company, it will literally fly you and a loved one out on, let's say, Portugal, Puerto Rico, Mexico, Aruba. you know for free because you really wrote a lot of business with them they will write you a or send you you and a loved one off to an incentive trip all expenses paid for great trips and also they also sometimes even offer you bonuses there's some carriers that we work with that pay us extra money yeah on top of what we're already writing with them just because we went out there and wrote some policies and put a lot of clients with that particular company they're going to pay you right your agency can also be able to offer you some bonuses as well if you're in the right home. So it's very, very important for you to understand that all these things that you have access to is all in the access of your fingertips. You just have to figure out which company is going to offer you the best support, offer you a good contract, offer you a good comp so you can go out there and make a lot of money in this business. Okay. I would like to know which one would you rather be? Would you rather be... LOA at 1099, captive or broker, which one would you like to do? Broker, captive, LOA? or 1099. We want to hear your thoughts. Make sure you guys comment below and tell us what your thoughts is on this video and we can answer any other questions that you guys may have. Mike, you have any finishing words? Like, subscribe, comment, follow us on Instagram, follow us on TikTok. Thanks for watching this video, guys. As we always say, see the top.

Welcome back to the channel. Here are five ways... Let's go!

...to show you how the money works selling life insurance. My name is Jalen. Come on, y'all know who it is.

Mike. All right, guys. So, we're going to hop right into this video.

We want to first talk to you guys about how do you structure yourself when you come into the business. And there's two different ways you can do. 1099 agent or an LOA agent.

You see, a 1099 agent is somebody who says, you know what, I got enough confidence in myself, I want to find an IMO or an agency that I can work with and get paid commissions directly from the insurance carrier to my bank account. Yes. In your account. In your bank account.

110 PNC, Wells Fargo, it doesn't matter, right? And the beautiful thing about the 1099 agent is that you're getting paid direct from the insurance carrier that you write the business from. within the next 24 to 72 hours directly in your account after you get a policy issued, okay?

Now you have an LOA agent. An LOA agent is somebody who wants to come in and go the intrapreneur route where they are working underneath the umbrella, specifically like an agency, and you don't get your commissions paid from the insurance carrier. The agency will actually pay you.

So let's say, for instance, you guys decided to go out there and work for ABC Insurance Agency. You will go LOA to that specific company. Any policies that you write will go to that agency, and then they will pay you a commission.

Okay? You guys are probably wondering, well, Jalen, which one do you prefer? Right? I'm going to pass it to Mike. Mike, which one would you suggest for a new agent coming in?

Honestly, either one of them. Both of them are very, very lucrative. It depends on what you want.

If you go LOA, you're going to probably have no lead costs or no AKA marketing costs. So anything you write is pretty much profit for you. Wow, that's good.

So that's a benefit there. And also with the LOA model, you're going to probably get really, really good training because you're using someone else's marketing money. So they don't want to waste their money.

So they're going to make sure you get the best, best training to make sure when you go out there and see the client, you're getting. the maximum result so that's good LOA model is cool because you're going to learn quicker you're going to learn more efficiently you don't have to spend any money out of pocket and you know you're pretty much making all money there yeah broker sorry 1099 route it is going to be um a little long long-term goal for an agent is that you know you gotta spend money usually on marketing leads stuff like that um You do get to own your own book of business. Which is good.

So all the clients you write up are all your clients, typically. And then also the 1099 route, you have more flexibility. You get to actually create your own schedule.

You get to actually get paid by the carrier directly. And the training should still be really good. Keyword, should be. Should.

Depending on the agency and the group you work with. It should be very hands-on. It should be very... very very good as well so you know no bias but me and jim were both 1099 agents we both started out as 1099 agents but we do know some other folks that are also loa as well like i said both very very lucrative yeah so you just have to figure out which route you would rather take loa or 1099 1099 just a quick summary you're going to have to pay for all the marketing costs up front for leads sometimes for training right You have to cover the cost up front.

The commissions are typically a little bit higher because you do have to cover the cost. LOA, the insurance carriers pay your agency that you work with, and then the agency pays you out. You don't have to worry about any upfront marketing or any costs for leads. The commission is a little bit lower, but again, you have to factor in the fact that you're not paying for the marketing, which is a big bulk of how to actually make money in this business, all right? Let's move on to the next topic.

Next one. All right. Next one is going to be captive or broker. So captive route is going to be you're pretty much with just one company only. You can only sell that one company's product.

But that does mean that with you only selling that one company's product, it's so much easier. You know, you only got to do is learn one company's underwriting, their systems, their processing. You should get really, really good training. The comp level is usually a little more lower, but you typically do get free leads as well.

Yeah, and that's beneficial if you are a captive agent, right? There's no bias here. The perks of being captive is you get all these extra benefits of working with one company.

Like the benefits is how stress-free it is when it comes to trying to learn 15,000 other products as an insurance broker. Now again, the downfall is, unfortunately, your commission is lower, right? To go on 40, 50, sometimes 60%, depending on the company you decide you want to work with.

But again, they still are covering all your marketing. all your leads for you. We know people in the insurance business who are captive and they're making multiple six figures as well.

You just have to figure out if that's the route for you. And they had great bonuses being captive. That's true. And also with chargebacks, it's actually easier to deal with because you are captive.

Correct, yeah. And on the back end, their renewals are a little bit higher just because your commission's a little bit lower on the captive side. So on the renewal side...

you do start making a little bit more money because you are working with one company. But the downfall also being captive is that let's say the client can't get approved with that company you're with, being a captive agent, they couldn't have lost out on the sale. Now you got to push it out to a broker.

Yeah. You know? Yeah.

And it's unfortunate when that happens. So you just have to figure out which one you want to work with. Let's talk about brokers, right?

I know Mike kind of smiled a little bit because he loves the broker route. Yeah. Right. So as an insurance broker, me and Mike are insurance brokers.

We actually work with a ton of different carriers. We wouldn't recommend that you get 50,000 carriers either. But as an insurance broker, the number one luxury you have is making sure that your client is always covered. For me, I don't have to worry about if my client is unhealthy, if we can get them covered or approved or not. It's simply which route do we want to take that's going to best assist this client with their situation.

All right, so Mike, talk about the benefits of being an insurance broker as an agent from the financial side. So you usually get a higher comp. You're able to pretty much service any client's needs, 20 years old, 30 years old, 80 years old.

Whether you want an annuity, term, whole life, IUL, you have more options. You usually do get to own your book of business. So you do if you do leave that brokerage company you can go to different brokerage and all your clients should move along with you. You have usually more flexibility of time. It's endless benefits I would say.

But like I said before the captive route, I do believe the training is going to be better. So you're looking for like hey Mike I need the best of the best training. The captive route will probably be better.

Now the broker route, you can find some great training. Yeah, true wealth. All right, you could find some good training, but just letting you know there's some brokers out there that are just recruiting at a high level and they just want to just get in a lot of people and the training kind of just falls off. Yeah, and that's one thing I would recommend too is that when you are looking to become an insurance broker, you have to figure out, okay, cool, is this guy offering me a high comp because I have no experience?

You have to be thinking to yourself, okay, why is this guy offering me such and such, like a super high comp? Typically for those people who are offering high comps at that level, there is no training structure there. So you have to literally fend for yourself to figure out how to actually become profitable and work this business. Now, if you work with us here at True Wealth, we have trainings every single day, role playing every single day, one-on-one calls.

So you don't have to worry about that with us. But for the vast majority of brokers and agencies out there, you have to do your research to make sure that they're offering you the best training possible to help you succeed. Now, being a broker as well, opposite of the captive side, being a broker, you do have the ability to work yourself up to a higher commission level. 60, 70, 80, 90, 100, 120, 130. You know what I mean? It goes up there.

It goes up there as well. So yeah. The next one. So we're going to actually get down to the nitty-gritty of how you do get paid as a broker or even as a captive agent will be advanced commissions.

So advanced commissions is literally what it says. You're getting advanced your commissions to you off of good faith that, hey, Mr. Michael on the phone watching us right now, hope you're eating your frosted flakes. They're going to advance you, your money to you up front.

because they trust you. Typically a nine month advance, they're going to advance you. So let's say for instance, the client is paying $1,000 in the year in total premiums. The insurance companies are going to come to you and say, hey, hey Roger, we're going to trust you and advance you 75% or nine months of this $1,000.

So you're going to get paid $750 within 30 days of making that sale. But that's going to be based off of the commission level is at 100%. Correct. So whatever contract level you're in, just for easy numbers, we were just saying for 100% contract, right?

So you just have to understand that you are going to get advanced as money. So just know that when you get advanced as money, That is your money. You can spend it, but you really want to make sure you're being diligent with the money and not blowing it.

Reinvest it back into your business. You also want to put some reserves away for chargebacks as well. In case a client does fall off the books, you can just pay it back either by writing more policies or if you want to pay it out of pocket, you can do so as well.

And let's go into some more extra details if we can, Jalen. So let's say average client is paying about $80 to $100 a month. for their life insurance policies with us, average. So I'm paying a lot more, so I'm paying a little bit less. So with them paying, let's say, $100 a month, times that by over a course of a year is 12 months.

That's $1,200 they're paying for their policy. Now, the insurance company is going to say, hey, we're going to pay you nine-month advance. Nine months out of 12 months is 75%. Yeah. Three-fourths of the year.

So at 75%, off of the client's annual premium will be advanced to you now because the client got approved today now on their insurance policy. Correct. So you take the annual premium of the client, times it by your commission level, where you're at, hope it's 100% or 80% or above, right? And you would times that by the 75% advance. And that's what you get your income into your bank account the next day, next few days, next few weeks.

Perfect. Perfect. So let's move on to the next point.

The next point is one of my favorite. We call this mailbox money. There you go.

Right. That's what Nipsey Hussle said. Mailbox money.

That's what we're all looking to accomplish at some point in time. And under mailbox money, there's two different ways that you get paid. The first way is through back in pay. Right? You guys are like, Jalen, what are you talking about?

Back-end pay. You can pay back-end pay multiple ways in insurance? Yes. So here's the beautiful thing about back-end pay.

So we just told you that the insurance companies are going to advance you 75% of the policy premium, annual premium, that your client is paying. Now, for some of you geniuses on the line, you guys are probably wondering, well, Jalen, where's the other three months, 25% going? That's where the back-end pay comes in.

So the insurance company is going to say, hey, just because we advanced you 75%, we still owe you that extra 25%. And they're going to pay you that extra 25% the last three months of the policy effective year, right? So a month 10, 11, and 12, they're going to divide that 25% up into those three months.

So let's say, for instance, the insurance company owes you, still owes you $300 from your advance. You're going to get paid $100 in month 10, $100 in month 11, and $100 in month 12. That's the money that I like because you'll just wake up one Saturday morning, wake up one Friday, and you just have thousands of dollars in your account because you were a great agent and you signed up 20 policies that month and all of them stayed on the book. And you get hit with $2,000 in month 10, 11, and 12, and you're wondering where this money's coming from. That's the beautiful thing about this business.

You're going to forget about that money coming in on the back end and boom, it's going to just show up there and now you can go on a vacation. Right. Let's talk about the next one, right? Which is after back end pay, we have something called renewals. And this is the client paying for their policy after year one.

Correct. And you said the back end pay is the client paying for their policy, like I said, throughout the whole entire year because the advance pay is the client paying for their policy. is what you got for the first nine months of the client paying for their policy off of good faith correct like clients are paying for the last 12 months now month 10 11 12 yeah they got the back end pay correct now we're into the client paying for the policy now in month 12 13 and beyond correct so yeah so yeah so renewals is very important too when it comes to this business because this is what you get when you're just asleep you don't have to worry about Making money because you just got money coming in month in month out.

Yeah, right. So let's give some numbers A typical renewal off of life insurance policies is around five and a half percent. Okay, some carriers will pay renewals for the rest of your life, some will pay for 10, 15 years, but that five and a half percent is the industry average on what you're going to be getting paid in renewals. So let's say you signed up 150 families in a single year, and let's just say that your pay, your commission, for that year was roughly around $100,000.

Okay. The insurance companies are going to pay you five and a half percent of a hundred thousand, because that's how much annualized premium you wrote that year. So that's going to be roughly around $5,000 every single year that you will get paid from the insurance carrier.

And again, that's $5,000. annually, not monthly, but it's annually, right? Crumbs make a cake, trees build a forest. When it comes to renewals, this is what's going to cause you to start being able to make a lot of money quickly.

And by time year five or year 10 come, you'll be able to pay all your bills and live off your renewals if you do it absolutely correct. And obviously, when it comes to Medicare, that's a different story. Medicare is different.

We're going to talk about that in another one. All right, next one. Building a team, also known as override. So you can then, as an agent in an insurance business, you can be a sole producer, or you can also build a team by saying, hey, I'm with a great organization named True Wealth Financial. They do things really good there.

You should come and join us because this is a great opportunity for you to make some extra money as well. I know you don't like your job because of the time you're putting in or... the low income is paying or you're because you're just missing out on all your family's football games your child's football games so come join us so by you doing that as an agent already on the agency you can put that agent underneath you let's say you're at a hundred percent commission level and the agent beneath you that you brought into your team your downline to call it is at an 80 commission level you The agent on an 80% commission level, they say they do $10,000 in sales in one month. Good. Beautiful.

Amazing. You're at 100%. They're at 80%.

That's a 20% gap there. They do $10,000 in sales in one month. You make 20% of that $10,000. That's $2,000 you make. Correct.

Let's say you had 10 of those people. That's $20,000 a month. Wow. And it goes on and on and on to having 100 agents underneath you. Correct.

And that's the key part about being an insurance broker and building an agency. Those are key factors that you have to pay attention to because where you decide to plant your flag, what agency you work with, you have to understand they are making an override off of you. So if they're not offering you the training that you need to be successful, you need to find a new home because they are making that income gap off of you, right?

So it's very, very important for you to find a home that can recognize what you're doing and give you the training that you need to be successful. All right. The last two guys are going to be company bonuses and incentive trips. So with the carriers we work with, if you write a certain amount of production with them, let's say 60, 70, 80K a year with that one company, it will literally fly you and a loved one out on, let's say, Portugal, Puerto Rico, Mexico, Aruba.

you know for free because you really wrote a lot of business with them they will write you a or send you you and a loved one off to an incentive trip all expenses paid for great trips and also they also sometimes even offer you bonuses there's some carriers that we work with that pay us extra money yeah on top of what we're already writing with them just because we went out there and wrote some policies and put a lot of clients with that particular company they're going to pay you right your agency can also be able to offer you some bonuses as well if you're in the right home. So it's very, very important for you to understand that all these things that you have access to is all in the access of your fingertips. You just have to figure out which company is going to offer you the best support, offer you a good contract, offer you a good comp so you can go out there and make a lot of money in this business.

Okay. I would like to know which one would you rather be? Would you rather be... LOA at 1099, captive or broker, which one would you like to do? Broker, captive, LOA?

or 1099. We want to hear your thoughts. Make sure you guys comment below and tell us what your thoughts is on this video and we can answer any other questions that you guys may have. Mike, you have any finishing words?

Like, subscribe, comment, follow us on Instagram, follow us on TikTok. Thanks for watching this video, guys. As we always say, see the top.

Transcript for:Understanding Life Insurance Earnings

Transcript for:
Understanding Life Insurance Earnings