Why You Shouldn’t Care So Much About Starting Contract
October 15, 2026
Starting contract level isn’t what builds a life insurance career. Here’s what to look for
October 15, 2026
We start our agents at 80%.
Every so often, a recruit hears that number, thanks us for our time, and signs somewhere else for a higher one. We understand why. When you’re new to the industry, or frustrated with where you are, the starting contract can feel like the most important number on the page. It’s concrete. It’s easy to compare. It feels like the smart, practical choice.
But it isn’t the number that decides your future. In fact, we’d argue it doesn’t belong in the top five things you should weigh when choosing an IMO.
That might ruffle some feathers. Here’s why we believe it anyway.
Most agents shop for an IMO the same way they’d compare job offers: find the biggest number and take it. The problem is that a contract level only tells you what you’ll earn on what you sell. It says nothing about how much you’ll actually sell, how fast you’ll grow, or where you’ll be in five years.
Think about it this way. A 100% contract on a handful of policies a month will always lose to a lower contract on a business that’s growing every quarter. The percentage matters far less than the volume, consistency, and momentum behind it.
Your first contract level is a starting point, not a destination. Every serious agent moves past it. If it’s the main thing you’re comparing, you’re optimizing for your first few months instead of the next twenty years.
What actually determines how far you go is earning potential. And earning potential comes from what an IMO builds around you, not the percentage it hands you on day one.
Before you sign with anyone, ask these questions. Ask them directly, and pay attention to how quickly and clearly the answers come.
Good training meets you where you are. If you’re brand new, you need a clear system you can follow from day one without guessing. If you’re experienced, you need training that sharpens what you already do instead of making you start over. Either way, you should be able to plug in and start producing, not spend months figuring it out alone.
Talent and training don’t pay the bills if you have no one to talk to. Ask how agents get in front of clients. Is there real support for generating leads, or are you expected to figure it out yourself? An IMO that makes leads accessible is an IMO that’s invested in your production, not just your signature on a contract.
This one gets overlooked, and it shouldn’t. You’ll spend a lot of time around these people. You’ll learn from them, lean on them during slow months, and celebrate with them when things click. A culture of accountability, generosity, and genuine support will carry you through the hard seasons. A toxic or competitive-for-the-wrong-reasons culture will wear you down no matter what you’re earning.
“You can move up” isn’t an answer. You should be able to see exactly what it takes to reach the next contract level, and the next one after that, with defined steps and milestones. A good IMO will make those steps clear and equip you with what you need to get there. When the path is clear, your goals become a plan instead of a hope.
This is the big one. Does the IMO offer a real way to build an agency of your own, one that grows beyond your personal production and can outlive you? Selling policies builds income. Building an agency builds a legacy. If an IMO doesn’t offer a path to ownership, you’ll always be working for someone else’s.
If an IMO can’t answer yes to these questions, a higher starting contract won’t make up the difference.
Our founder, Edward Pritchett, knows exactly how heavy that starting number can feel.
Sixteen years ago, he started at 60%. His car had just been repossessed. If anyone had a reason to chase the highest contract available, it was him.
But what turned that start into the agency he leads today wasn’t a contract level. It was the training that showed him what to do. The lead support that put him in front of clients. The culture that kept him going. The advancement system that showed him the way up. And the legacy ownership that gave him something worth building.
As Edward puts it, even a 100% starting contract wouldn’t have built his business without those things.
That experience shaped everything about how we do things at The Pritchett Agency. We built our agency around the five questions above because they’re the ones that changed Edward’s life, and they’re the ones we’ve watched change our agents’ lives too.
We’re not for everyone, and we’re comfortable saying so.
If you’re shopping for the highest number on day one and nothing else matters, we’re probably not the right fit. That’s okay. We’d rather be honest up front than have you join for the wrong reasons.
But if you’re a self-starter who wants real income and real freedom with your time, if you’re looking for an IMO built for the agent and not the bottom line, and if you want a clear path from your first sale to owning an agency of your own, we’d love to talk.
Don’t fall into the contract level trap. Look at the bigger picture.
Starting contract level isn’t what builds a life insurance career. Here’s what to look for
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