Questions to Ask Before Joining a Financial Services Company

Quick answer: Before joining a financial services company, ask how you get paid and by whom, what it costs to start and to stay, whether pay depends on recruiting or on sales, what happens to your renewals and team if you leave, who owns the company, and to see the published earnings disclosure. A good company answers in writing.

When someone is looking at joining my team, I tell them: make me prove it. Beat me up with questions. Shoot me straight. If I can't answer clearly, you shouldn't join me. Here's the list I'd want you to bring to any company, including mine.

How will I get paid, exactly?

• Is this commission only, or is there a salary or stipend?
• Who pays me: the insurance companies, the organization or my leader?
• What does each level get paid on the same hypothetical policy? Does it depend on the carrier?
• How often am I paid, and when are commissions advanced or held?
• Can I earn anything just because someone joins? (The right answer is no.)

What does it cost to start and to stay?

• Licensing, exam and background check costs.
• Errors and omissions insurance, monthly platform or technology fees, and anything else recurring.
• Are events, leads or coaching required, or optional?
• Do I ever have to buy product to stay active? (In insurance, you shouldn't.)

What do typical people actually earn?

• Can I see the company's published earnings disclosure?
• What's the typical result, and is it before or after expenses?
• How long do most people stay?

If they show you their best month and not the typical year, keep asking. The FTC explains how to read an income disclosure statement.

Does the money come from sales or from recruiting?

• What share of the training is about serving clients vs signing people up?
• Can I succeed just by serving clients well?
• How do promotions work, and is the next level clearly laid out and realistic?

This is the test that separates a business from a pyramid scheme. See MLM vs pyramid scheme: 9 red flags.

What happens if I leave?

• When do my renewals vest, and what happens to them if I leave or I'm terminated?
• What happens to my overrides and my team?
• Is there a non-solicitation clause? How long?
• If I die or become disabled, what happens to my business, and can a family member step in?

The full breakdown is in what happens to your insurance renewals when you leave.

Who stands behind the company?

• Who owns it? One person, a private group or a large, accountable organization?
• How long has it been around, and who regulates it?
• Am I captive or independent? How many carriers can I offer? See captive vs independent insurance agent.
• What happens to my agency if the company is sold?

What's the culture like?

• Will someone be on my calls while I learn?
• Are there quotas, or pressure to sell to family?
• Can I bring my spouse to trainings and events?
• How do leaders talk about other companies? (Respect is a green flag.)
• Can I talk to three people who joined in the last year, including one who left?

Is there a path to building something of my own?

• What would it take to run my own agency, and how many people actually get there?
• When my people become owners, does the plan keep rewarding me for building them?
• Is this a producer model or a builder model? See producer model vs builder model.

How do you make the final call?

Get the answers in writing. Read the agreement. Talk to your spouse. Pray on it. Have an accountant or attorney who isn't connected to the company look at anything you don't understand. A good company will be glad you did. Then compare your options side by side with builder model vs MLM vs commission only.

Frequently asked questions

What should I ask before joining a financial services company?

Ask how you're paid and by whom, every cost to start and stay, whether pay depends on recruiting or sales, what happens to your renewals and team if you leave, who owns the company, and to see the earnings disclosure.

How do I know if a financial services opportunity is legit?

Look up the person's license with the state, read the earnings disclosure, confirm pay comes from real client sales, total the costs, and have an independent professional review the agreement.

Should I join a financial services company that charges fees?

Licensing and some business costs are normal. Be cautious of large starter packages, required product purchases, or paid leads and events before you're licensed and trained.

What is a good sign in a financial services company?

They tell you the costs and typical earnings up front, put a mentor on your calls, explain what happens if you leave, and encourage you to read the contract and take your time.

You're not stuck. You're on a step. And the whole point of building is that every step stays built.

Let's build together.