Careers · The money
Free leads vs. higher commission: which pays agents more?
Recruiters sell the headline number. Agents live on what’s left after the lead bill. Here’s the math most people never run.
The short answer
For most agents, a lower commission rate with leads provided pays more than a higher rate where you buy your own leads. The deciding number is the break-even lead price: (monthly premium × the difference in commission rates) ÷ leads worked. If your leads cost more than that, the “lower” contract wins. Example: 200 leads, an 8% close rate and $1,000 average premium make $16,000 of premium; at 100% minus $30 leads you keep $10,000, at 80% with free leads you keep $12,800.
Why the highest contract isn’t the highest paycheck
Commission is a percentage of the first-year premium you place. A “110%” or “120%” contract sounds like more money — and per policy, it is. But at many agencies that headline rate comes with a catch: you buy your own leads. Every lead you work is a bill, paid up front, whether it turns into a policy or not.
So the honest comparison isn’t rate vs. rate. It’s what you keep: commission earned minus what you paid to get the conversations.
| Same agent, same month | Contract A: 100%, buy leads at $30 | Contract B: 80%, leads provided |
|---|---|---|
| Leads worked | 200 | 200 |
| Issued policies (8% of leads) | 16 | 16 |
| Annual premium placed | $16,000 | $16,000 |
| Commission earned | $16,000 | $12,800 |
| Lead bill | −$6,000 | $0 |
| You keep | $10,000 | $12,800 |
Example rates chosen for easy math — not any agency’s contract schedule, including ours.
Run your own numbers
Put in your real close rate, your real lead cost, and the two contracts you’re comparing. The break-even line tells you the most a lead can cost before the higher-commission deal stops paying more.
Free leads vs. higher commission
Two example contracts. Change any number — the winner updates.
Contract A You buy your own leads
- Commission earned
- Lead bill
- You keep
Contract B Leads provided
- Commission earned
- Lead bill
- $0
- You keep
Illustration only — example rates, not any agency’s contract schedule (ours included), not a typical result, and not a promise. Real results depend on lead quality, your skill, persistency, and chargebacks. Paying for leads also means paying before the commission arrives, in good weeks and bad ones.
The one formula to remember
Notice what moves the break-even: your close rate. The better you close, the more each lead is worth and the more a higher rate can pay. That’s why strong closers with cheap leads sometimes do better buying their own — and why most agents, especially in their first year, do better with leads provided.
What the spreadsheet doesn’t show
- You pay first, get paid later. Lead bills hit your card before a single policy issues. A slow week costs you money instead of just time.
- Chargebacks don’t refund your leads. If a policy lapses early, the carrier takes back unearned commission — but the lead you bought is still spent.
- Lead quality varies wildly. “Cheap” leads that nobody answers are the most expensive kind. Ask how fresh leads are, how many agents get the same lead, and what the contact rate is.
- Your attention is finite. Agents who buy leads spend real energy managing vendors, budgets and returns. Agents with provided leads spend it on the phone.
- Higher rates often carry production minimums or volume requirements to keep them. Read the fine print.
Which contract fits you
| Situation | Usually better |
|---|---|
| New agent, first 6–12 months | Leads provided — learn on real conversations without a lead bill |
| Coming from a captive company (no book to bring) | Leads provided — you start dialing day one instead of rebuilding a pipeline |
| Proven closer with a cheap, reliable lead source | Higher rate can win — check the break-even |
| Cash is tight | Leads provided — no money out before money comes in |
| You generate your own referrals or own marketing | Higher rate — your “leads” are already paid for |
How United Eagles does it
We built United Eagles around the agent who’d rather be on the phone than managing a lead budget. Leads are provided — you don’t buy your own. You work real prospects from your first week on the phones, so your money goes into your pocket, not a lead vendor’s. You’re paid 1099 commission, uncapped, at a contract level we put in writing before you sign — so you can run this exact math on our offer before you decide.
Straight answers
Common questions
Is it better to get free leads or a higher commission?
For most agents, free leads. Compare what you keep, not the rate: commission earned minus lead costs. A higher rate only wins when your leads are cheap and you close a high share of them. Use the break-even formula: (monthly premium × rate difference) ÷ leads worked.
How much do life insurance leads cost?
It depends on the type, freshness and exclusivity, and prices vary by vendor and market. Whatever you pay, the question is your cost per issued policy: lead price ÷ the share of leads that become a policy. At $30 a lead and a 1-in-12 close, each policy costs you $360 before you earn anything.
Why do agencies with free leads pay a lower commission?
Because the agency pays for the leads. The cost has to come from somewhere — either it’s built into a lower rate or you pay it directly. The fair question is which arrangement leaves more in your pocket at your close rate.
Do agents have to pay for their own leads?
At many independent agencies, yes. Others, including United Eagles, provide leads. Always ask what leads cost, who pays, how fresh they are, and whether they’re shared with other agents.
What is a good close rate on life insurance leads?
It varies by lead type and agent skill. The point of the break-even math is that you don’t need a universal number — use your own. If you’re new and don’t have one yet, that’s an argument for not paying for leads while you learn.
Keep reading
If it fits
Talk to a licensed producer — not a recruiter
Sixty seconds to apply, one honest phone call, and a clear path from licensed to producing. We’ll show you the contract in writing and tell you plainly if it’s not a fit.
- 1099 commission, uncapped — leads provided, no draw, income never guaranteed
- No fee to apply, train, or contract with us
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