Bankruptcy - can I be an agent?

[djs]

I would like to add, for those mortgage brokers reading from the sidelines, you can in fact make big money in insurance pretty quickly. It probably happens with 1 out of every 10,000 people that get into this profession. Not great odds, but I think we all agree, it can happen.

Will it happen to you? That is up to you. It's not very likely, the odds are more in your favor that you'll make about $30 - $50K the first year, if you focus on the job. Most of this will be back end loaded, and I'm not counting the first 6 months while you figure out which way is up (i.e., to Peeler's point, the earned income the first 2 months is usually $0.00, though advanced may be different).

Sorry Tom, but I wouldn't take much advice about how much can be made from someone with less than a year in the business. You may be off to a great start, which is awesome. You also have a motive to talk about how great it is, but no real experience to back it up. That said, I do like it when people are excited about this profession, and I do think a lot of people can do very well.

This is somewhat like what I was told the first time I thought about getting into health insurance. That Mega meeting was very interesting, I'd be making a huge amount early on, they forgot to mention a few things.....

Also, if you have 10 years, insurance is a GREAT profession to build a retirement income (note: I think P&C is better than health, but both work). You can build a decent book of business where renewals will carry you for a while. You just have to commit to it, work it hard, and know that the first bit will be very tough.

Dan

 

[myinsurebiz]

Anything is possible Dan.

Case in point - I had run an ad for stay at home agents and a guy called in today. He said he worked shift work - but had some office space he owned and wanted to put his son into business as an agent and sell a little himself during the off time.

His son just went through a nasty divorce, filed bankruptcy, lost his house to his wife first - then foreclosure and needs a fresh start. We can help him do it if he puts forth the effort!

But this gentleman didn't have any idea of how to set up an office and didn't want to take 6 months to "learn" it all - he just wants to sell insurance and buy a "business in a box" so to speak, so his son can pick up the pieces.

So - we put together a start up package for them to open a mini call center - 4 seats - selling non med easy issue Life only - targeting small face whole life and term with ROP.

Monday through Thursday work week - 9am to 7pm - closed noon to 2pm for lunch. However - his agents could work from home any time they wished outside those hours. He could even have TeleSales reps work from home exclusively for those outside his area if he chooses.

We'll go in and network the computers, phones, wireless internet, etc and get them contracted with us through our carriers. We'll set them up with a website and a simple accounting system. We'll assist in the hiring of agents and the training if needed. We'll offer on-going training and support, as well as, provide them with fresh organic leads ( $10 callbacks or $20 direct mail / live transfers ) to board business with our carriers OR they can generate their own leads.

This is the coolest part -

He agreed to pay us $2,995 setup fee + a 10% over-ride on sales made through the group. They will be responsible for all remodeling, infrastructure, equipment, supplies and all monthly operating expenses.

Less than $10k total and this guy is in the insurance business - building and all - awesome!

Sales Projections:

4 seats x 8 deals weekly x $60 average monthly premium x his 10% over-ride x 9 month advance = $1,728 in gross revenues weekly or almost $7,500 a month. Doesn't include any personal production - so add that in. If chargebacks were 25% - they would still gross about $5,625 in over-ride revenues monthly.

Projected Overhead:

Rent - $500
Electric - $250
Water - $50
DSL - $100
VOIP - $100
Liability Insurance - $100
Blanket E&O - $300
Supplies / Misc - $600

Estimated Total = $2,000

Estimated Net = $3,625 + personal production of approx - $5,000 a month. Not bad for a 4 day work week . . .

So - you never know what will happen when you answer the phone!

Tom

 

[LGilmore]

Why do I feel the need to shower now.

 

[taterpeeler]

Why do I feel the need to shower now.

Because You Do!!!... and after reading that bs so do i

again, i give him less than a year... he could not make it in the sr market because of cancelations... and now he is running this scam....

 

[somarco]

selling non med easy issue Life only - targeting small face whole life and term with ROP.

This may work for the short run but the likelihood of it producing over the long run is very slim.

Those "easy" sales are usually also easy on the cancellation side. Non-med especially, and to an extent ROP term has poor persistency.

All it takes is someone going in behind your sale and educating the client on how much they are paying and how much they can save.

I don't do a lot of life biz, but when I run into one of these it is easy pickings.

The chargebacks on this business will kill you.

 

[myinsurebiz]

peeler said - " again, i give him less than a year... he could not make it in the sr market because of cancelations... and now he is running this scam.... "

Ole peeler - your misinformation is astounding. I personally had nominal "cancellations" - about 15%. I got out of FE because it sucks and the company sucked. Sick Old people just don't turn me on . . .

BTW - how is it a "Scam"? We're just setting people up with their own mini call center and showing them how to simply sell one product - non med life. They can branch out to other lines whenever they feel they are ready. So easy for people to yell "scam". Please for once peeler, make some sense versus regurgitating from your mouth . . .

Bob said - " This may work for the short run but the likelihood of it producing over the long run is very slim. Those "easy" sales are usually also easy on the cancellation side. Non-med especially, and to an extent ROP term has poor persistency. "

Actually Bob - GTL has been doing it for many, many years and quite well I must add. There is a market for it - I've seen it over the last month - people want it.

" All it takes is someone going in behind your sale and educating the client on how much they are paying and how much they can save. "

Could happen. We project losing one in four - 25%. Although GTL says that figure is high - they have a 84% persistency rate on their non med term / whole life through Q1 and Q2 sold via the phone / net.

" The chargebacks on this business will kill you. "

We can live with a 25% chargeback ratio. It's projected and part of the business plan. The CB's are pro-rata. 9 month advance - keeps it 3 months - only 6 months debited.

It's a numbers game.

On the ROP - we'll explain to them how they can take the difference between the term base premium and the ROP rider premium and invest the difference for an actual return - but, from my research - most aren't disciplined enough to do it.

We'll see I guess . . .

Tom

 

[GreenSky]

Tom:

Doesn't it bother you that your only goal is to make a buck? You are promoting crappy products to the uninformed.

You can sell insurance and still do a good job for your (and your agents) clients. Thus far, I've seen nothing from you that would lead me to believe you even care about the clients.

Rick

 

[xrac]

....................I got out of FE because it sucks and the company sucked. Sick Old people just don't turn me on..........

One day we may all be sick old people in need of help. We will all definitely be old. Hopefully when we are we will have people in our lives including business people who think we are worth the time and effort.

 

[myinsurebiz]

Rick - we put the client first always. We offer them plans from our carriers, and if the client likes the plan - we sell it to them. No pressure sales. Either they want it or they don't, and since we create our own leads organically - they have expressed an interest in buying a life insurance policy. We market two quality companies for life:

GTL and Fidelity Life.

GTL – Guarantee Trust Life Insurance Life Company

More than 1.2 million insured’s and over $2 billion life insurance in force. More than $180 million in assets. Founded in 1936. B+ Rating.

As of December 31, 2003, Guarantee Trust Life Insurance Company had:

• $216 million in invested assets.
• $204 million in total liabilities.
• $122 million in total reserve for life policies and contracts, and accident & health policies.
• $36 million in net surplus.

Fidelity Life:

Over 112 year old company.

Currently, Fidelity Life has over $22.67 billion of life insurance in-force, over $550 million in admitted assets, and capital and surplus of over $275 million. A- (Excellent) rating.

We can also offer our reps contracts with Americo, Oxford, Shenandoah or any carrier they wish provided they qualify.

Not much to explain in Life insurance, that's why we start all new agents off with life only - the learning curve is short and sweet. I like the level commissions with Health - but Life is bang bang!

Tom

 

[myinsurebiz]

One day we may all be sick old people in need of help. We will all definitely be old. Hopefully when we are we will have people in our lives including business people who think we are worth the time and effort.

Yes - we will.

I'm leaving this market to others that may enjoy this segment. Not that old sick people aren't worth time and effort - just not my bag of tea. Kinda of like someone wanting to operate an Italian restaurant instead of a Burger King.

I can show someone how to setup an insurance business for less than $10k and be in the black within 6 months if they sell and can motivate others to sell as well. Thus the reasoning for only non med Life at first. Easy to learn the product and there is a market for it that will come to you with a little marketing effort.

We'll have agents on board that write all the other stuff. So - when an agent hits a lead that wants something other than what that certain agent has - they can run it upline and earn a marketing fee for the referral. Or - the agent can get appointed and sell the product themselves - whatever turns that agent on. We make our money either way on leads.

Tom