Compensation model explain by CEO Janie Prickett

This is explanation about how compensation works from CEO Jamie Prickett.

I'm going to go right into the contract level. So how we pay people is we pay them a hundred percent of the FY C FY C stands for first year commissions now, depending on the carrier the fyc ranges, I mean I've seen as low as 35% fyc I've seen as high as 70 65 percent probably is our largest on our platform, but if I was to say that the average fyc in the industry was fifty percent now, it's a little higher than that, but 50% makes my numbers very simple. And if you take a typical family and let's say that they're spending a thousand dollars annually for their life insurance product or maybe critical illness or disability if the average fyc was 50 percent that means you would take a thousand dollars of annual premium multiply that by 50 percent that equals five hundred dollars from there in order to determine your compensation level and again II know I know some of this might just be like very basic if you're already a part of another MGA watching this video. Marketing organization or network marketing organization, or maybe new to the industry. You might not understand this. So I'm going to break this down very quickly, but very simple to understand so you got 500 of fyc based on that thousand dollars of premium Now although it says first your commission's that's not all you make there's actually a bonus and it's called a bonus but it's part and parcel of the fyc. So as soon as you are paid your commissions for selling that customer a thousand dollar annual premium product and an Example of the 50 fyc might be a 15-year term or a 10-year term product if you get in other types of products the FY C is can be higher or lower now that five hundred dollar fyc you take that number and add our starting contract a financial associate. This is someone by the way, that's brand new to the industry. So they're going to be going out doing appointments or zooming on appointments. We do a lot of zoom and boom right now, but this the the appointment is actually going to be done typically with someone who is a sales manager or maybe one of Of our executive director levels because they have the experience to train the new people coming in. See what we want to make sure is that when the new people go out and help a family they're going to get paid all of the compensation. However there has to be a vested interest in one of the leaders one of the managers in the company to train that agent. So we start new green agents at a forty percent bonus level. Now what that means is you're going to earn that $500 plus a 40 percent bonus of that 500. Of the premium. It's 40% of the fyc so that would be 40 percent of 500 is an additional $200. So essentially you are going to make seventy percent of the annual premium or 500 FY C plus the two hundred dollar bonus, which is $40 or 40% of the $500 in FY C. Okay works the same at the next contract level senior Financial associate most people in one or two months. They quickly progressed to senior. Nancial associate as a senior Financial associate you make the same 500 fyc and you make a 70 percent bonus of the 500 fyc. Now, you're earning roughly 85% of the annual premium. Now again, you get into other products. We're paying over a hundred percent over a hundred and ten percent of the annual premium depending on the product that you're offering for the customer now, then you go to sales manager to become a sales manager with Xperia because we are big Believers in building. A business I'm going to talk about why that's important as a sales manager you need to have for licensed agents either Financial Associates, or senior Financial Associates in your team. And here's the benefit as a sales manager you now earn 100% bonus, which means whatever the f YC is just double it. That's what you make so if it's 50 % FY C you're making a hundred percent of the annual premium up front if it's a 65 % FY C. Well you're making a hundred and thirty percent. Up front but here's the cool thing. We actually have something called. Of corporate profits. We're going to use the word a disbursement of corporate profits. We're going to pay out to the organization a set amount and I'm going to share those amounts with you shortly, but this is what's really interesting you make the difference between the contract levels of those in which you are training. So as an example if you have a financial associate at 40 percent bonus, you're at 100% bonus and they go out and make the sale or you help them make the sale in many cases you're going to earn 60 percent bonus. On the fyc. So the fyc was $500 you're going to make a three hundred dollar bonus override because you're the one that trained or recruited retracted that agent to the organization now where it gets really sexy in here is when you become an executive director and executive director contract level starts at a hundred and forty percent bonus, so you take that 500 fyc 140% of 500 is $700. So now you're making twelve hundred dollars on that thousand dollar annual. Premium again if it's a different product to pick significantly more but watch this executive director we have an executive director a senior executive director and national executive director and a senior national executive director position, but you'll notice they're all at 140 but it says 140 plus the reason why there's a plus there is because depending on the size of your agency in the volume in which you're doing on a monthly basis we pay an additional bonus every single month throughout the organization of 5 to 20% And sixty percent going out can actually be earning a hundred and sixty percent going out there and helping families FY C plus 160 percent going out and working with those customers now, why these different levels that they all pay the same? Well, here's why as soon as someone becomes an executive director with experior we issue them 2,000 shares in the mothership in the corporation experior Financial Group once they become a senior executive director to become a senior. Executive director you need to promote a couple other executive directors, so you are at 140 to 160 you promote someone to 140 to 160. We're going to continue to pay you I'll get into that in a second but watch this you're now building a business that's running with or without you because you've developed independent executive directors and you can become a senior executive director and oh by the way we assure you another 3000 shares in the corporation once you become a national executive director same thing. You continue to build out executive directors and your organization. You'll get another 4,000 shares senior National under 5,000 shares you can get up to fourteen thousand shares in experior the corporation so not only are you building a business where you own your clientele. You're actually building a business. Where you can own a piece of one of the top 10 mg A's in the country right now in volume and recruiting and everything else. How cool is that now on top of that when you promote someone to executive director, so let's just say your name is Joe and So Joe recruits Sally Sally goes as a sales manager she builds a team. She's got her eight licensed agent. She does the volume by the way, she has to do average of 30,000 of annual premium two months in a row to get qualified between her and her team of eight minimum licensed agents now Joe promotes Sally Sally's now an executive director Joe still running at 140 to 160 percent and overriding as agency Sally's now at a Hundred sixty percent override and her agency Joe still earns 28% on a generational override. I like to call this generational wealth overrides. This is where you're developing other independent leaders. Now, here's the cool thing. Let's say Sally now has a superstar in her team hurt. His name is nahin nahin, Ms. Building this business now now he and becomes an executive director Sally now has a first-generation naheem. He's making a And 40 to 160 percent Sally still Makin 28% on the hings entire organization and Joe over here. That's his second generation right there Joe still makes 14% this continues for seven generations, and if you do the math, we're paying out another 53 percent to the entire organization now this is where I lose people because they go well, how is this possible? How do you do this? See a lot of companies they have things called marketing dollars every month. Year, they've got different bonus incentives with the different carriers that they're using and a lot of agents are. We're of this that there's a lot more money in this insurance organized operation than meets the eye. So here's how we pay out 140% Baseline to an agency and an executive director Baseline then up to a 20% bonus. That's payable every single month. This isn't like a One-Shot Wonder deal. This is something every single month paid out and then another 53 percent paid to the hierarchy Generations. So if someone ever tells me, yeah, well Jamie you pay your guys 140 160. I know a guy Makin 170 180 running an agency. For example, I've oh, yeah, but that's only one part of the puzzle. You got to look at the whole puzzle. We're paying out up to a two hundred and thirteen percent bonus plus all of the fyc to the organization to my knowledge. There is not another mg a captive agency network marketing agency and all of financial services. Compensation now you might ask. Well, why do we do it? Well, there's a simple reason we built experior for the Kings and queens of the operation we built it for the agents and the agency Builders we didn't build this for the shareholders to get rich.