A lot of new agents don't know how commissions actually work. Ask yourself, do you really understand the commission game and how it works and how you can start to actually produce lots of money? Like when I was 20, we're going to talk about money and commissions and how you can start to actually be in the know on how this works. When I was 20, literally 20 years old, playing basketball, taking 21 credit hours of semester for college and become a full-time insurance agent and made $117,361.13 in my first eight months. Here's what I'm thinking about doing and talking about commissions. We're literally thinking about shooting a video where I get $117,361.13 from the bank and we have it in a briefcase and we have all this cash shitting on the desk and I talked to you about money. If you would like to see that video, post in comments below if you want me to go to the bank and rob the vault for $117, okay? Keep in post that. I'd love to see your comments on that. Help me out. Now, if you're new, I want to understand how commissions work by the way. The way this works is typically, here's the process. You'll have a lead of someone that has some level of interest in what you're selling. Some level of interest, by the way. Not every level of interest is the same. Most people, most new agents where they get in trouble is they think a lead equals a sell. It does not. If they equal a sell, no one would need you. So if the lead, some level of interest, some are high, some are low. Then, the agents job, to set an appointment, to set a phone sell to get in front of that person, whatever. Then, my phone's probably going off because I got a lead maybe who knows. The appointment, then it's your job to get in and make the sell, to make the sell. Now, how that works is, once you make a sell, the prospect or the client in that respect now, what they do is they pay what's called a premium. Not a premium, in that it's a premium product, even though it could be, but they're paying a premium, which is the amount of money that they are paying for their policy. Now, the way this thing works is, I'll move to the other side of the board real quick. The way this thing works is, let's just say that you're talking to a prospect and you sell them a hundred dollar a month policy. Let's just say that hundred dollar a month policy, let's just say they buy a, I don't know. Let's just say they're 30, it's a 42 year old male. They buy a 20 year term for $2 million, I don't know, $2 million, I'm making it up, but you get the idea, right? I know, I pay more than that, but I've got like $5 million of life insurance. Why? Because the insurance is never enough. Why my wife spends money? Yes, that thing is going quick. I can guarantee you that. She's 32. It ain't lasting 60 years. 5 million bucks can last in anybody 60 years. It just ain't, okay? So, a hundred bucks a month, boom, if you take that number times 12, that equals $1,200. That's what the client is paying over the first year. So if you think about that, right, $1,200, that again is what's called the premium. That's the amount of money that the client is premium. We call that a premium, okay? We call it an insurance premium, right? Then you take the $1,200 for the first year, you take it times your commission rate, okay? You take it times your commission rate, which let's just say for easy math, let's just say it's $500, okay? I'm saying, let's just say it's 50%. Your commission percentage, okay, is what we'll call it, commission percentage. Now, let's just say that you get paid 50% when you sell live insurance policy. Again, some companies pay more, some companies pay less, I don't know. I'm just educating, okay? So in that case, $1,200, $1,50 is $600, right? This isn't general example, by the way, of like a size of a policy. I always sold, my averages were over $100 a month, because you had some big ones, right? You had the $1,000 a month one. You had the $500 a month one. You had a bunch of $2,300 a month ones. You had the $1,000 one too, okay? So it'll vary in size. Let's just say it's $600. Some companies will then, some companies will pay the whole year out up front, so then you get $600. Most will typically do at what's called a nine month commission advance, okay? Which means nine divided by 12 is 75%. So you take 600 times 75%. As you only get nine months up front, and I'll explain that in a second, 600 times nine months, okay? Times 75% is $450, right? So in this example, if all of this were true, I'm not saying it is, but if it were, you would get $450 that would be direct deposited in your bank account, okay? All right? Direct deposit in your bank account. Follow me so far, okay? Now, if that's the case, and you're like, well, what about the rest of the months? I only get nine months up front, okay? Now, you get, yes, you get nine months up front, right? So you get $450 in this example, right off the bat, okay? Great. Well then there's still the other $150 here that's available, and they would pay out this is the first nine months. It would pay out in month 10, month 11, and month 12, and they would each pay $50, $50, month 11. Once the client makes the payment, okay? Now, if the client doesn't make it nine months, and you were advanced nine months of commission, it's kind of like the insurance company is loaning you nine months up front, okay? Now, if the client is keeping the policy for nine months, the company is kind of, kind of coming back for their money by the way, okay? So some people that sell ads earned, right? If you're a new agent, you need to commission advance. You just do, but just know that if the client does not keep it on the books for nine months, they're coming back for some of their money, right? Let's just say the client cancels after three months, or after six, let's say the client cancels after six months. At six months, you still owed three months, which means there's still $200 there, right? So you're going to sort of think about, okay, what does that look like? There's 150 bucks of commission available there that you would have to give back, right? So month 12, another 50 bucks, okay? So you total that up? Boom, that's where the $600 comes in, right? So 600 bucks is the total first year commission, or TFYC in this example, okay? Every company calls it something different, right? I've heard a bazillion terms, okay? When I started out, they called it NFYC, not first year commission, okay? 600 bucks. Now there's also some renewals to where, yes, if you, if the client keeps paying, and you're with a company that pays renewals, sometimes term doesn't pay renewals, by the way, okay? It varies by the type of term, product types, there's simplified issue, there's no paramet, there's fully underwritten where there is a paramet, it just varies greatly, okay? But follow with me. Look, some companies will pay commissions years two through 10 as well, okay? Now very small percentage is very small amounts, but it can grow, it can accrue, okay? But if you understand that, okay, I get paid to do two things, okay? I get paid as my wife's trying to call me, okay? I'm trying to help, help I just make some money, okay? Can you guys tell her, okay? There's two things, you get paid to sell policies. You also get paid to keep clients on the books, to retain policies, okay? Contrary attention, customer service, etc., right? If you're like, okay, I don't know how commissions work for life insurance. You do now. Hey, if you love this video, you're going to love, okay? I got behind the scenes with Jordan Milford in our conference about how we can help new agents and what he would do if he was you. Check out video out. You have to get them into the habit of dialing or out. It's got to be top of the phone. People are scared to dial a phone and scared to go to red.