HOW WILL YOU BE COMPENSATED?

Some would like to focus on the consistency of income rather than the consistency of effort, the latter will always pay better in the long run.

The Most Common Question Asked

This is an exciting element of our business. Of course, everyone loves to get paid, but the power of our compensation model is not often adequately understood. Today we will delve more fully into each factor involved with how we receive our income from the business. This knowledge will help you know what kind of business you’ll need to build to hit your personal income goals.

Personal Income

Personal Income is what most people think of when considering income generation in this industry. Simply put, you personally assist a client with putting a strategy in place, and the company with which they invest their funds pays us a standard commission. An example would be as follows:

Your friend Lucy decides she wants to save $300/Month into an Indexed Universal Life account. The following example is a rule of thumb approach as the number can vary slightly in either direction, but this scenario would likely look like this –

$300/Month * 12 = $3,600

So a total of $3,600 would be paid to our company. You would multiply that total commission paid by your contact rate to determine what you’d take home as a check. Your contact rate is determined by your current promotion level.

Training Associate: 25%

Associate: 35%

Senior Associate: 45%

Marketing Director: 50%

Senior Marketing Director: 65%

So it would appear as follows if you are a standard senior associate:

$300/Month * 12 = $3,600

$3,600 * 45% = $1,620

As we discussed in your interview, the Baby Boomers are the bread and butter of the industry right now. I encourage you to spend time getting to know that generation and put yourself in front of them as often as possible. Your income on a standard 401k rollover into an indexed annuity would look like this:

$500,000 401K –> Indexed Annuity

$500K*6% = $30,000

$30,000 * 45% = $13,500

Clearly, a better market when you’re looking for income.

Agency Income

Utilizing the same calculations for generating personal income, you can calculate how much money you make while running your agency. If you have a direct agent at a 35% contract rate and you’re at 45%, you will receive a 10% ‘brokerage spread’ on every piece of business she does.

$1,000 total commission paid to the company.

$1,000 * 35% = $350 for the agent.

$1,000 * 10% = $100 for you.

This is another powerful element of our industry. It creates strong passive income streams while you also build your personal book of business.

Expansion Income

This is where the true power of WFG vs the rest of the industry shines. Most companies in the industry operate under a model wherein the current leadership team has no long-term incentive to fully develop their agents. If they do, the agent becomes capable of running their own agency and departs, leaving the training team without that income and a need to go find a replacement. This is massively frustrating and creates cut-throat environments with a low degree of camaraderie.

World Financial Group completely dismantles this concern by utilizing a long-term compensation model for the very development of new agencies. In other words, you will continue to generate 12%-15% of a brokerage spread as long as your ‘trainee’ stays in the business.

The numbers would look like this: Your Trainees Agency (not just the individual but his entire team) generates $30,000 worth of total commission per month while you are training them. You, as a 65% Senior Marketing Director, would be making approximately 15% off of the total team production if your key leader on that team is a 50% marketing director. When your marketing director is promoted and now runs his own office at 65%, technically there is no ‘Spread’ there. Our company will continue to pay a base 12% spread until you qualify for the bonus pools which add the additional 3% for a total of 15%. You don’t lose anything long-term!

This long-term benefit puts the focus of the agency leadership team entirely on the development of their people. It is a phenomenal model that creates strong relationships and exponential growth.

Bonus

Bonus income is relatively simple to understand. Simply put, when you become a Senior Marketing Director (SMD), you are allowed to qualify for the bonus pools. These average out to be approximately 3% of the total production of your personal and non-SMD team. The minimum bonus will usually sit around $750 per month but can go uncapped on the vertical.

We didn’t cover the different elements of Trails and Renewals as those vary by product and can go into more depth than we felt necessary here, but understand that those are powerful passive income generators as well off of your own personal book of business.

In Conclusion

You have so many ways to generate income here. A well-rounded business of building leaders and personally producing will quickly generate great amounts of income and create a long-term stable business. You must be proficient at doing both. We get paid twice a week, Monday and Wednesday. Put yourself in a position where you never miss a pay period!