Calling All Uplines (and Downlines Too)

[PA Bill]

Where would contract levels (fyc and renewal) need to be for both upline and most important the agent to offer 25 fresh and "free" DM leads weekly to the agent? Training and support would be full service (ride a longs, etc.), local, and ongoing. What is most agency could offer in an attempt to retain good producers? Would any level less than street retain good producers even with the leads, service, and support? Any feedback appreciated (even negative). I promise no arguing on my end, especially on Labor Day.

 

[just some f.e.llow]

Where would contract levels (fyc and renewal) need to be for both upline and most important the agent to offer 25 fresh and "free" DM leads weekly to the agent? Training and support would be full service (ride a longs, etc.), local, and ongoing. What is most agency could offer in an attempt to retain good producers? Would any level less than street retain good producers even with the leads, service, and support? Any feedback appreciated (even negative). I promise no arguing on my end, especially on Labor Day.

Lots and lots of variables here, but to give a good, rough answer I would say the producer would get 45%.
Yes, you can retain good producers at below street, but you've got to be giving a really good deal, I believe. 45% and 25 DM leads aint good, IMO.

 

[Newby]

Where would contract levels (fyc and renewal) need to be for both upline and most important the agent to offer 25 fresh and "free" DM leads weekly to the agent? Training and support would be full service (ride a longs, etc.), local, and ongoing. What is most agency could offer in an attempt to retain good producers? Would any level less than street retain good producers even with the leads, service, and support? Any feedback appreciated (even negative). I promise no arguing on my end, especially on Labor Day.

If you would give the agents 25-free, new decent quality direct mail leads per week and 80% commissions you would have them lined up around the block.

It would cost you $750 per agent per week to produce those leads. So they would need to average $2,500 per agent per week for it to be fair to you.

Good luck with that. Some agents won't work. Some agents can't sell. Some agents will take your free leads and sell them elsewhere at a 115% they have through another up line. And it will ruin it for the good ones you have that will sell $2,500 weekly for you.

We would all love to offer that to the guys who need help. But it has never worked out for me.

 

[jlata1]

Well do the math 25 leads x $28 = $700 a week or $2800 a month to the recruiter.Lets say a good imo averages about 137% fyc throwing in all the contracts. lets sat avg street is about 112% . The imo is making 25% on all the placed business.Lets say a guy does 12k gross a month and the imo makes 25% that's about $3k a month in over rides. So at street the imo would break even. So in reality a not greedy imo could make about 10% net and give 25 free dm leads a month giving the agent 100%. But then you throw in over head and chargeback risk and I think a very high vol imo could make pretty good money with giving 95% and 25 free leads.Now that's assuming the agent has been around a while and writes good business and his chargebacks never go upline

 

[Newby]

Well do the math 25 leads x $28 = $700 a week or $2800 a month to the recruiter.Lets say a good imo averages about 137% fyc throwing in all the contracts. lets sat avg street is about 112% . The imo is making 25% on all the placed business.Lets say a guy does 12k gross a month and the imo makes 25% that's about $3k a month in over rides. So at street the imo would break even. So in reality a not greedy imo could make about 10% net and give 25 free dm leads a month giving the agent 100%. But then you throw in over head and chargeback risk and I think a very high vol imo could make pretty good money with giving 95% and 25 free leads.Now that's assuming the agent has been around a while and writes good business and his chargebacks never go upline

That's what is so great about the free market system. If it can be done and is profitable, someone will do it.

 

[PA Bill]

Thanks for the responses fellas. Providing a genuine free lead program sounds like a tight rope to walk. I guess that's why I've rarely seen it offered. And when I have seen it, it was by large, established agencies offering low contracts who have learned how to navigate the minefield. And even the two agencies I've seen lead with Med Sups. Have to make a special request for FE leads.

Sometimes folks can get excited about exploiting a perceived niche, not realizing there are perfectly good reasons that niche isn't often exploited. Happy Labor Day everyone!

 

[Newby]

Thanks for the responses fellas. Providing a genuine free lead program sounds like a tight rope to walk. I guess that's why I've rarely seen it offered. And when I have seen it, it was by large, established agencies offering low contracts who have learned how to navigate the minefield. And even the two agencies I've seen lead with Med Sups. Have to make a special request for FE leads. Sometimes folks can get excited about exploiting a perceived niche, not realizing there are perfectly good reasons that niche isn't often exploited. Happy Labor Day everyone!

What you will find for the most part is the agents can't trust the up lines on free lead programs (they lower the contract levels but then give the agent B-leads, or give the same leads to multiple agents). AND the agencies can't trust the agents (they will take your expensive leads and sell them elsewhere.)

The odds of honest agents and honest agencies meeting up on a free lead program would be about the same as winning the lottery.

I would love to be able to do it. But I've found no way to make it work.

 

[WinoBlues]

Thanks for the responses fellas. Providing a genuine free lead program sounds like a tight rope to walk. I guess that's why I've rarely seen it offered. And when I have seen it, it was by large, established agencies offering low contracts who have learned how to navigate the minefield. And even the two agencies I've seen lead with Med Sups. Have to make a special request for FE leads.

Sometimes folks can get excited about exploiting a perceived niche, not realizing there are perfectly good reasons that niche isn't often exploited. Happy Labor Day everyone!

Seems that you would also have to be captive.

 

[PA Bill]

What you will find for the most part is the agents can't trust the up lines on free lead programs (they lower the contract levels but then give the agent B-leads, or give the same leads to multiple agents). AND the agencies can't trust the agents (they will take your expensive leads and sell them elsewhere.)

The odds of honest agents and honest agencies meeting up on a free lead program would be about the same as winning the lottery.

I would love to be able to do it. But I've found no way to make it work.

I hear that. I got sucked in once by a large Columbian outfit in Jersey with the promise of free leads. After signing on and training for a couple days it turned out you had to "earn" your free leads by cold calling lists on a 50% contract. Agencies do indeed play games.

 

[just some f.e.llow]

That's what is so great about the free market system. If it can be done and is profitable, someone will do it.

What a totally respectable way to say to jlata, "no f'ing way, dude. Your numbers aren't even in the stratosphere..."