{"id":15075,"date":"2019-05-20T12:42:00","date_gmt":"2019-05-20T16:42:00","guid":{"rendered":"http:\/\/lifeinsurance-orleans.ca\/Life-Insurance-Blog\/how-am-i-going-to-get-paid\/"},"modified":"2019-05-20T12:42:00","modified_gmt":"2019-05-20T16:42:00","slug":"how-am-i-going-to-get-paid","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2019\/05\/20\/how-am-i-going-to-get-paid\/","title":{"rendered":"How Am I Going to Get Paid?"},"content":{"rendered":"\n
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\nTrail commissions are shaping up to be the compromise between large upfront commissions and asset-management fees that seem to be an awkward fit for annuities, according to two marketing organization executives.<\/p>\n

\nTrails could provide the firmer direction that the industry has been seeking. The large upfront commissions are under attack from critics and regulators, while the advisory world claims that agents charging management fees for assets they don\u2019t manage doesn\u2019t work either.<\/p>\n

\n\u201cI think trails probably become the preferred option,\u201d said Jason Jenkins, chief marketing officer with Simplicity Group Holdings, a financial marketing organization with nearly $4 billion in 2018 annuity sales. \u201cIf an advisor can (utilize trails), it\u2019s a smart way to build a book of business.\u201d<\/p>\n

\nNot everybody in the business loves trail commissions. Ohio National rattled the industry with its September decision to cut off trail commission payments on specific variable annuity contracts. The insurer was sued several times and, to date, no other companies have cut off trail commissions.
The shocking Ohio National decision shows how much turmoil and uncertainty the industry faces, Jenkins said.<\/p>\n

\n\u201cWhat happens over the next 10 years will be the biggest change and impact in this industry \u2014 ever,\u201d he said. \u201cThat\u2019s because it\u2019s a collision of regulation, fee compression, artificial intelligence, all of that, and you\u2019re starting to see it in the last 12 months.\u201d<\/p>\n

\nAs it unfolds, Jenkins said agents will have to prove their worth.<\/p>\n

\n\u201cThe challenge that advisors have to face is, what is the value add that you\u2019re bringing to substantiate how you\u2019re being compensated?\u201d he said. \u201cSo if that\u2019s commissions, fee-based, whatever, that\u2019s the conversation we need to be having.\u201d<\/p>\n

\nThe three basic compensation models for annuity sales are:<\/p>\n