Introductions Are Worth Big Bucks In The Insurance Industry

Earning commissions forever by simply making an introduction beats working for a living………….

By Bill Rusteberg

“Tom, I know of a company that offers a really unique product which I am sure you will like and your clients will like even more. And you can make a ton of commissions fast! Are you interested?” asks Gregg.

Gregg has just set the table towards earning himself a commission in perpetuity but Tom doesn’t know that. He’s new to the business, just having received his group 1 insurance license from the Texas Department of Insurance.  He thinks Gregg is just trying to help him get started in the insurance business.

“Why yes, I’m interested. When can we meet to discuss?” is the hoped for reply. “No problem, let me set up a meeting with the company and I will get back to you Tom. In the meantime start thinking about how you are gonna spend all those easy commission dollars that will be coming your way!” 

Gregg is Tom’s new best friend.

As soon as he hangs up on Tom, Greg calls the company to cut a deal for the introduction. “Jack, I have a broker of mine that I want signed up. He is hungry for business and can open a lot of doors for your company’s products. I want to introduce you. But first please send me an override contract so I can receive override commissions should Tom sell any of your products. And oh, by the way, his name is Tom Knucklehead so make sure you put his name down under me in case he tries to go around me and contact you directly.”

So the scheme is set. Knucklehead likes the product, signs a marketing agreement, and sells the hell out it. Commission dollars come rolling in just like Gregg promised.

In the meantime Gregg is spending quality time on the golf course in between visiting his mail box to pick up his commission checks.

Eventually Tom finds out Gregg is getting 5% commission while he is only getting 10% commission. Tom wonders why Gregg should be paid anything off his efforts. He complains to the company and demands  to be paid the additional 5% “because I’m doing all the work and Gregg is doing nothing to earn his 5%, its just not fair!”

“Knucklehead, don’t you know how the insurance business works? Introductions are worth big bucks. Why don’t you introduce us to other brokers and you will earn 5% off their efforts too!, Plus, do you remember that trip Gregg took last month to Spain? We paid for it.  You too can qualify for our next trip to Monte Carlo if you make enough introductions!”

So Tom does just that.