EARNINGS CLAIM STATEMENT REQUIRED BY LAW 

Tristate Financial Network, Inc’s (TFN) business is based on sales of life and health insurance products. Sales agents are independent contractors, not employees. Independent sales agent’s earnings are based on the sale of products offered by insurance carriers. For most products, sales agents must obtain required licenses before they may sell those products.

As a TFN Independent Agent (IA) and through its (Line of Authority - LOA) The Alliance and its insurance carriers, you can earn money in the following two ways:

1. You can sell an insurance product to customers as personal production and make a percentage of commission based on your contract level and product factors; and,
2. You can earn a percentage of sales commissions (overrides and/or bonuses) based on insurance sales that agents on your team make.

As with any other sales opportunity, the compensation that IAs earn varies. TFN makes no guarantees on the amount of income an individual can make. Many IAs want to earn some extra income part time, while some have other goals for larger incomes and more time commitments. How much you can earn depends on many factors, including your lead sources, client base, advertising, business experience, skills, effort, dedication, time commitments and the quality and extent of your sales team.

The information in this document is based on data collected about TFN Independent Agents in 2023.

Cost to Register or Renew
You do not need to buy any products or services to become an IA. However, there are state licensing costs to receive and maintain your state insurance license. (These fees are administered by each state and are independent of TFN). These are outlined below.

What it Includes - Annual Cost to get a license - Varies
 

• You must have an active life and/or health insurance license in your state of residency. TFN does not take money for licensing. The fees associated with licensing vary by state and can be determined by going to your state’s Department of Insurance website.

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Annual Cost to Renew License - Varies

• Every few/couple of years your state will require continuing education to maintain your license.

We may offer you value-added training events and support. You can choose to take part in this training, but you are not required to. These events and training sessions are recommended but not manditory. As Independent contractors agents are responsible for covering their own expenses, including any state licensing fees, materials, travel or events etc. they choose to participate in.
 

Typical Earnings in 2023 
There are two ways IAs earn compensation: insurance product sales to customers, and sales override commission based on the volume of sales of insurance product within your team.

How do expenses affect the average income of an IA? 
Expenses may reduce your net income. These can include state licensing fees, shipping charges, taxes, lead sources, and other expenses, travel, any optional training, if you decide to hire a staff person and any optional support you choose to invest in.
 

What are the percentages of those who had sales and earned compensation in 2023?

564 signed carrier contracting paperwork in 2023. 478 had at least one paycheck in at least one month in 2023.

• 15% of TFN IAs licensed and contracted in 2023 with at least one carrier contract having no reported sales, did not recruit another IA, and did not earn any compensation. 
• 85% of TFN IAs licensed and contracted and active in 2023 with at least one carrier receiving a paycheck from The Alliance or one of its insurance carriers in at least one month with at least one application issued during 2023. 

What were the average annual earnings before expenses for those TFN IAs who received a paycheck from The Alliance or one of its insurance carriers in 2023? 

The average income for ALL licensed independent contractors that issued at least one piece of business or had a team that issued business at the Executive Vice President level and below in 2023 is $11,070.65 before expenses and the median income before expenses is $707.17.
 

Annual Earnings Before Expenses For Those Who Had Received a Commission as a TFN IA

Top 1% of the active IAs
$381,570 (average) and $265,559 (median)

Top 10% of the active IAs
 $93,157 (average) and $50,659 (median)
 

Top 50% of the active IAs
 $21,908 (average) and $3,727 (median)

What are recognition levels in 2024?
TFN’s LOA The Alliance Compensation Plan recognizes IAs who’s personal and downline volume achieves specified monthly or annual levels. IAs who are Agency Manager (AM) and above level are building their personal and team volume have additional requirements. Additional levels beyond AM can be achieved. AM+ levels can we achieved in 2-10 years+ however there are no guarantees and are based on the determination, skills and work ethics of each individual.
A small number of IAs achieve higher levels of recognition, bonuses and awards. The typical time and required effort to achieve these levels of recognition are extraordinary. They should not be the basis of your decision to become an Independent Agent.