Tanya Hughes walks through how insurance-agent commissions work: agents start at 70% on roughly $1,100 annual cases, get a $500 advance, and can climb to 90% commission by hitting $12,500 in monthly premium, about 12 average cases. The key is repeating the same work while moving up the ladder.
Questions this video answers
$89 per month (approx).
About $1,100 per year (89 × 12, rounded).
70%.
$770 (70% of ~$1,100).
75% advance (speaker cites this to explain the initial ~$500 payout).
Chapters
Alright guys, hey, let's talk comp grid, okay? We mentioned it briefly in the previous video, but let's get down to the details so you can really understand how you can go out there, help families and help yourself and your family by putting some deposits in the bank. So as I said before, these insurance companies pay us to distribute their product, right? And they pay us a percentage of the annual premium. And so I'm going to break out the whiteboard here and we're going to go through this real quickly so that hopefully you can kind of understand how this all works. So for those of you that don't know, our average case is about $89 a month, right? If you took that times 12 is $1,100, give or take a couple of bucks. And then as you see here, down here at the bottom, we start our agents at 70% commission, right? So at 70% of 1100 is $770. Seven hundred and seventy bucks. That's what you get paid every time you help a family on average. Okay. The way the insurance companies pay that out is they say, you know what, we're going to give you a 75% advance. And so when you add that up, it's going to be 500 and something for simplistic steak just so that we can, you know, average. And we always round down, right? We always round down because we want some buffer in there. But basically that's how we get to that number. And so when we, when you hear us talk on calls about how every time you write an application you get 500 bucks, that's what we're talking about. So what does that mean for you? You're getting started, you get to 500 bucks. Well, I want more than $500. You know what, you can do it. And the way you can do it is to increase your distribution. The insurance companies say when you get started, you're valuable to us at this 70%. If you can go out and you can write the premium, the increased distribution, that's how you go up this ladder and get to this 80, you know, 90. Let's just look at 90 for a second. And what does that mean, $12,500. Well, we just told you the average case is $1,100 in premium. And so you just do that, divide that out. Again, simple math. You need 12 applications a month to be able to get to a 90% commission. And so your goal when you get started here is to know exactly what you have to do to increase that commission every single month. Because what that means. If you can do that and you can increase your commission and go up this line every single month, you're going to put in the same amount of work. You're going to get paid more for it because the insurance companies say you're that valuable to us, that will pay you that much more to distribute the product that we've asked you to distribute. All right. Hope that makes sense. Let's move on to the next step. We'll go over how that works when you start building a team.
