In fact, many people have asked this question, and when asked, their expressions were either indignant or mysterious, mostly with a teasing tone, quite a bit of a sour grapes mentality.

In fact, this is understandable: when I bought a bottle of mineral water for two yuan at the grocery store, the factory price of this bottle of water was actually less than one yuan. In other words, the grocery store owner's profit on this bottle of water exceeds 100%. It is hard to imagine that the profit on such an ordinary bottle of mineral water exceeds 100%. Will he be so angry that he doesn't want to drink it?

In fact, the commission payment of all insurance companies has a rough international ratio, which is 2~3% of the annual premium collected by the salesperson.

For example: A customer pays an annual premium of RMB 10,000, divided into 20 years. Hand over 200,000 yuan a year in 20 years. So how much commission can the salesperson get from this single business? Calculated over 20 years, the average annual salary is 200-300 yuan, and you should be able to get 4,000-6,000 yuan per year. If it is a single payment, sorry, the commission paid by the insurance company is only about 2-5 points.

However, in order to promote the development of new order business, the insurance company made a structural adjustment to the commission payment ratio. Put the bulk of the annual commission payment in the first year (many seem to be as high as 35%-40%), and shorten the commission payment period to about 5-8 years. And it’s getting less and less every year! Basically, starting from the third year, most types of insurance pay a commission of 1%, and by the fifth or eighth year, all payments for the business are completed.

After all, buying insurance is to solve the problems you face, and agents or brokers also have to support their families. The commission that seems high is actually only 2%-3% on average.

Nowadays, if you buy a bottle of mineral water, the boss will earn more than 100% of your money. Therefore, there is no need to feel resentful about the agent’s commission.

If you really think that making money from insurance is easy and belongs to Easy money, then you can try it too!

I am an insurance broker in Mingya, and I can answer responsibly: Yes, it is true.

Let me explain to you the basic laws of our Mingya Insurance Brokerage Company:

For example, the lifetime savings critical illness insurance, which the second senior brother recently sold The more popular Xintai Perfect Life (Exclusive Edition), if the insured amount is 500,000 yuan, the premium is paid for 20 years, and the life-long protection is guaranteed, the customer’s annual premium payment is 10,000 yuan. So, how much money can the second senior brother earn from this list? It is mainly divided into several parts:

The first part: direct performance commission, which is 40% of the first-year premium. That is 4,000 yuan. This commission ratio is the same for all insurance companies’ critical illness products.

Part 2: Quarterly allowance, an additional 30%-70% will be added to the performance commission of the first part. The more achievements you make, the higher the delivery ratio will be. The worst is 30%, that is, 4000 x 30% = 1200 yuan.

Part Three: Job allowances, performance points, etc.

In summary, for every critical illness insurance a salesperson sells, the commission rate can reach more than 50%. Looks like the commission ratio is high, right? Very profitable, right? Let me tell you next, it is not as simple as you think:

First: learning cost. Insurance is a professional matter, and not just cats and dogs can do it.

Before becoming a qualified insurance broker, the second senior brother must first participate in Mingya's 5-day new entry training and 3-day transition training. In addition, there are more than 10 hours of online learning and training, and then you can pass the Mingya Insurance Broker Examination and obtain the insurance qualification certificate before you are qualified to sell insurance.

In the subsequent learning stage, the second senior brother must study the "Insurance Law", be proficient in medical knowledge, understand underwriting and claims, sales processes, legal and business knowledge, etc. In addition, each insurance company’s insurance products and insurance contract terms should be studied thoroughly, and their own insurance knowledge system should be gradually established. The accumulation of this knowledge cannot be accomplished overnight.

After doing this, the second brother has the opportunity and ability to sit in front of customers, conduct professional insurance needs analysis and customize insurance plans for customers.

Second: Service cost: From a customer’s intention to purchase, to demand analysis, to solution customization, to objection handling, to final order signing, the average service time for each customer of the second brother is more than 6 hours. . This is only the service time cost during the insurance period. Insurance is a lifelong matter. When customers buy insurance, we provide them with value-added services such as policy sorting, policy diagnosis, and policy preservation every year. The most worrying thing is that if a customer is in danger and we have to assist in handling claims, the service cost will be much higher. If there is a disputed claim case, it will take even longer.

When a customer buys a policy, we only charge a commission of 40%-50%, but it may take a lifetime of service. At this time, will you still feel high? Please think about this again. Is it the clients who make the money, or our insurance brokers?

Third: Other costs: As an insurance broker, the second brother does not have a basic salary, and his income depends entirely on performance. You can imagine how stressful the work is. And now the insurance market is very competitive. Any customer may have communicated with at least three insurance salesmen before communicating with the second senior brother. The second senior brother wants to compete with them and win a client.

How can he succeed without strong professional ability, good service attitude, and honest and trustworthy character?

As an insurance practitioner, when you open your eyes every day, you have to search for potential customers all over the world, you have to have a strong psychological endurance to face the rejection of customers, and you have to communicate with thousands of people. Insurance peers compete, and they have to withstand the pressure of life without a basic salary... Therefore, the brain drain rate in the insurance industry is as high as over 70%. Thousands of people enter the insurance industry every year, but not many can really stay. , it’s not an exaggeration to say that one general’s achievements will cause thousands of bones to wither. Therefore, when buying insurance, you have to find a time-tested professional insurance broker who has been in the insurance industry for more than 3 years, like Brother Er.

I especially like what teacher Wu Bofan said: The result is simple, but the starting point is complex. Signing a contract may only be a matter of time, but only we know how much we have paid for this result. We worked so hard and worked so hard to get the opportunity to sit down with the customer for an insurance interview. Excuse me, is 40%-50% commission high?

Therefore, when a customer asked the second senior brother to return the commission, the second senior brother would rather not sign the order than return the commission to the customer. This is what I ask of my new recruits: If you dare to return the commission, I will fight with you.

The second senior brother often works until 12 o'clock, and the average working time is 10 hours a day. In addition to interviewing customers, making plans, and signing orders. I have to study insurance products and policy terms every day, study courses from various famous people, and then write articles and export insurance knowledge... I continue to enrich insurance-related and non-insurance knowledge, keep learning, and the more I learn, the more I am in awe.

Finally, the second senior brother would like to say something to all those who are interested in joining the insurance industry: There is no shame in selling insurance. It is natural to make money based on your ability and earn a living based on your professionalism.

Xiaoxiaoxia replied: It is true.

There are many insurance company products. Currently, the commission ratio of each insurance company is generally between 10% and 40%. The specific amount depends on the type of insurance and the payment period. The longer the payment period, the higher the commission rate. Coupled with the product's renewal commission (generally available in the first five years of purchasing insurance, but relatively small) and first-term sales promotion incentives, it is normal to see 50% or more.

Why is it so high? Pay is proportional to income

Some friends think that 40% is too high. Then Xiaoxiaoxia will ask everyone, if you think it is so high, why don't you do it? Most of my friends may say: "Selling insurance? It's too difficult, I can't do it." Yes, selling insurance is difficult. Because insurance is not like other commodities, it can be seen and touched. When we buy a TV and go home, we can immediately feel the joy and convenience it brings us; when we buy an air conditioner and go home, we can immediately feel the coolness or warmth.

However, when we buy insurance, we don’t know when we will need it or what help it can bring to our lives. Because insurance covers unknown risks. Chow Yun-fat once said: Most people believe it only after they see it, but insurance only sees it after they believe it.

Because of this, for a person to go from not knowing about insurance to buying it, insurance salesmen need to put in a lot of effort, including sales skills, insurance knowledge, and the ability to face rejection. Strong self-healing ability. Therefore, the "high" insurance commissions are inseparable from the extraordinary efforts of insurance salespeople. Insurance products focus on service

Products such as TVs and air conditioners have a very large proportion of technical content. In comparison, after-sales service is much simpler. However, insurance products cannot be seen or touched, and the terms are relatively complicated. It is not possible for the customer service hotline to explain all the customers' questions in just one or two sentences. Therefore, insurance companies must rely on insurance salespeople to help customers better understand and understand insurance. It is also necessary to allow service personnel to serve customers face-to-face to provide customers with a better experience. Therefore, the "high" commission is the compensation paid by the insurance company to the salesperson, and is not given to the customer from the customer's premium! When a high commission is put into long-term service, it is actually a very low reward.

When a customer buys insurance from an insurance salesperson, the commission seems to be very high in the first year. But the validity of an insurance contract is not just one year, it may be twenty, thirty or even longer. Can you tell the salesperson, "I buy insurance from you and I won't need your service in the future"? Since the service of a salesperson is required, the 40% commission is spread evenly over 10 or 20 years, which is only 2%-4% per year. Is it still high? The high initial commission is matched by the insurance company's strict service quality control on sales staff.

In summary, each industry has its own particularities. The "high" commissions of insurance salesmen are needed for the rapid and healthy development of the insurance industry. Because only with the intervention of insurance salespersons can our customers enjoy better services.

Taking Xian'an as an example, generally for a life insurance product that has been paid for for 20 years, the salesperson or agent will take about 30-50% of the premium you paid in the first year as commission in the first year. 20% in the second year, 10% in the third year, 5% in the fourth year, and 2% in the fifth year. There is no more behind. After calculation, if you pay a premium of 10,000 yuan per year, you will have to pay a premium of 200,000 yuan in 20 years. The salesperson will not get a commission of 10,000 yuan, and the commission rate is 5%. Insurance companies earn 95%, which is of course an imaginary number. After deducting average claims, CIRC requirements, and advertising and other miscellaneous expenses, an insurance company with a 200,000-dollar policy actually earns about 60-70%. The insurance company hired an actuary to calculate this benefit at a high price. Those who are thinking about going to an insurance company to buy insurance for themselves and get commissions should wake up as soon as possible. Insurance companies are so sophisticated and thieves that they can take advantage of you. How can we call it an insurance company if we don't squeeze the oil out of the customer's stone?

Commission is 50, 60% is normal.

Someone answered: How about you sell it?

I still think it’s too little.

If you want to take the road of professionalization and move towards the goal of becoming an independent agent in the future, the investment of time and energy in learning the profession (not speaking skills) alone is very large.

Before you go to insurance companies, they will lie to you. Insurance is very free. You can arrange your own time and work... Yoxi, you are right.

In fact, if you want freedom, you are too naive. It is not that you cannot indulge in unbridled love for freedom, but freedom is often incompatible with performance and money.

Although no one forces you to do anything in an insurance company, the atmosphere is there. If you don’t work hard, you will be eliminated quickly.

Selling yourself and your acquaintances foolishly will not last long.

This is a job that requires a lot of effort.

You always see 50, 60% commission. You are so awesome, why do you want to do a job with no basic salary?

The vast majority of people will be eliminated.

Is the commission too high?

Therefore, if you can choose a job with a basic salary, don’t sell insurance.

Don’t think about what’s wrong with other people’s commissions, that’s what they should have.

Otherwise, don’t buy insurance for the rest of your life.

Of course, I can also give you a tip. If you want to buy insurance and save money, then come to the insurance company yourself to get education.

If you pay, you will be rewarded. Otherwise, who would be willing to pretend to be a grandson to do this?

All walks of life have their own living space. Insurance practitioners are also human beings and need to support their families. They are engaged in the most difficult-to-sell job in the world: persuading a good person to To think about life, old age, illness and death and help customers plan for future risk protection.

In other words, the customer's future health risks may or may not occur. Based on this assumption (big data released by the National Banking and Insurance Regulatory Commission), practitioners are willing to risk the common reputation of "liars" Serve customers, sign orders for the company, and work hard for your own performance.

In our country, the social status of insurance practitioners is extremely low. However, when customers receive claims, they are the most reliable people who save people from danger.

In every industry, unhealthy tendencies exist, but it does not mean that they are the majority. The social role played by insurance is recognized by the state, and its role in family economic relief can only be achieved by those who have made claims (benefited). ) families will feel it firsthand.

As the same saying goes, insurance itself does not deceive people. What deceives people is the unscrupulous agents and intermediaries who only seek to stir up trouble.

So what? So what if it’s not?

Every time I talked about the insurance salesman, I asked tentatively with a teasing look, as if I didn’t quite believe it, but also seemed to look down on him.

Let me make it clear here that if the renewal commission is added, the commission rate may exceed 100%. In other words, the profit margin of selling insurance may be more than 100%, but it just takes time to realize it.

The commissions of insurance companies are the first-year commission and the continuing-year commission. The first-year commission generally ranges from 3% to 50%, and the continuing-year commission generally ranges from 1% to 20%.

If the premium recovery in the second year is good, there will be a sum of money called the continuation rate bonus. Each insurance company has different calculation methods, which may exceed the continuation commission in the second year.

For insurance commissions, it is generally related to the payment period. The longer the payment time, the higher the commission ratio, and the longer the withdrawal period will be.

The above is the commission status of insurance salesmen. Each company is different, but they are similar!

Many people think that insurance must be very profitable, but you must know that the sales cost of insurance salesmen is also relatively high. Including early maintenance costs, service costs, and some marginal investments, and once the policy is signed, it will provide decades of service. In fact, it is not much money if it is spread evenly every year.

Preliminary maintenance costs

Nowadays, when visiting customers, no one comes empty-handed. Either they invite you to dinner or send gifts, these are the most basic. For some customers, the longer it takes to follow up, the higher the cost.

Some indescribable expenses

Nowadays, many people start to focus on the salesperson’s commission in order to reduce their purchase costs. Many people directly talk to the salesperson. I am If you buy insurance here, how much discount can you give me? Many salespeople return commissions for the sake of performance. Although this is a serious violation, many people have no choice but to survive.

Later service costs

Once you become a friend of a customer, the salesperson will be notified of any future weddings or funerals. We should meet at least three times a year. During holidays and birthdays, investment is required. These are all service costs.

In fact, after calculation, the actual income in the hands of the salesperson is really not much.

Another factor is that the difficulty of selling insurance determines that the sales commission is relatively high, otherwise it will be more difficult to retain people.

For customers, an insurance is a sure guarantee for the future, but for salesmen, commissions are the source of income for them to support their families.

Therefore, don’t focus on the salesperson’s commission, just focus on your own insurance protection. Don’t worry about some things that you shouldn’t worry about.

First, for a 20-year payment product, the annual premium is 10,000 yuan, totaling 200,000 yuan. The salesperson gets 40% of the first-year premium, which is 4,000 yuan. In fact, the salesperson only gets all of your income. 2% of the premium, if you borrow 200,000 yuan, the handling fee will be more than 4,000 yuan, not to mention that it will require 20 years or even lifetime service.

Not every product is 40%, there are also 30%, 10%, 5%, and 1%. Therefore, insurance companies pursue continuation rates and policy quality, and impose extremely severe penalties on illegal salespeople!

Second, if you look at this reasonably, the income you get as a salesperson is not taken directly from the insurance premiums, but is given by the company. Just like when you go to a bank to deposit money, the teller's salary does not come from your deposit, but from the bank's labor costs. There are two lines of income and expenditure!

Third, insurance company salespersons should actually be called marketers. They are essentially an agency relationship, not a labor contract. According to national regulations, 60% of a salesperson’s income is used as business development costs, so, It is appropriate to give such income, and the insurance company will not reduce your insurance premium because of this. It is the same thing. Of course, we do not rule out the possibility that some agents may face high-income violations of law and discipline. Therefore, we need to strengthen our study, resist illegal agents, and jointly purify the insurance market!

Insurance agents’ commissions are determined based on the different insurance products. The ones with the highest commissions should be life insurance and critical illness insurance, while the ones with relatively lower commissions are medical insurance, accident insurance, and annuity insurance.

The first-year commission for critical illness insurance and life insurance is generally around 50-60%, but personal income tax of around 15% needs to be deducted. Moreover, starting from the second year, the commission will be reduced once, and by the fifth year, there will be basically no commission.

Many people say that insurance agents earn too much commission. But when we buy insurance, we don’t just want to be quick, we want to have continuous and stable insurance protection.

Taking critical illness insurance as an example, the general protection period is at least 70 years old or lifelong. An insurance agent has to continue to serve customers for 10 to 20 years. If the first year’s commission is If it is spread over 10 or 20 years, do you think it’s too much?

Many people say that insurance is a profit-making industry. Do you really understand what a violent industry is? Do you know how much a bottle of mineral water costs? What is its profit? Do you know how much it costs to make an Apple phone? What is its profit?

Doing insurance is very difficult. You need to deal with different people, and you have to constantly promote yourself so that others can accept and recognize you. You also need to provide long-term and continuous services in order to survive in this industry. You see, there are many people who work in insurance companies for a year or two and then can no longer hold on, which shows how difficult insurance is.

And in other words, if you have a professional insurance agent by your side who can provide you with continuous and long-term professional services, it will actually be a very happy thing for you. Because when an unexpected major illness strikes, it can help you deal with the risk calmly. The value of an insurance agent is not how much commission he gets, but what kind of professional services he can provide you.

It depends on how it is calculated. If you include the first premium, it does. Is 40%-50% a lot of commission?

If the annual premium is 10,000 yuan and the premium is paid for 20 years, the premium will be 200,000 yuan. 50% of the first premium is 5,000 yuan. If calculated based on 200,000 yuan, it will be 2.5 % commission.

This kind of commission rate is lower than many industries, such as selling houses, even selling mineral water. Moreover, buying personal insurance is very infrequent, unlike car insurance, which has to be bought every year. For example, critical illness insurance may be bought once in a lifetime, so the commission rate is indeed not high. Selling insurance is not an easy task

I see that when many companies recruit sales positions, they will write the following sentence: "Those who have been engaged in insurance sales will be given priority." It can be seen that everyone thinks that selling insurance is difficult, even Eliminated insurance salespeople who go to other sales industries will be given priority.

The elimination rate of insurance agents is as high as over 80%, which is much higher than other industries. I have never seen such a high elimination rate in any industry.

Many agents enter an insurance company and sell a few policies with the support of relatives and friends or buy some on their own. Then it becomes difficult for them to sell even one more policy and they have no choice but to leave.