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Ok, literally has me laughing out loud...the wife gave my the ushka look for laughing at the forum..
Calling All Uplines (and Downlines Too)
- Thread starter PA Bill
- Start date
Ok, literally has me laughing out loud...the wife gave my the ushka look for laughing at the forum..
- 6,994
Ok, literally has me laughing out loud...the wife gave my the ushka look for laughing at the forum..
Ushka??? That's racist....i think.
just some fellow give me the #'s then. I know bigger imo's make 140% or more and I know street contracts or 115% or so.Now of course theres chargebacks to take into account. So theres some spread there to take some risk.also as newby said another huge risk is I take the leads and sell elsewere
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I already did give you the numbers.
You're also overlooking another key point: the large IMOs don't NEED to create such a program. So you're left with mid tier to smaller IMOs who would seek out such a solution. Those guys don't have the spread that bigger IMOs do.
And your assumption that an IMO could market to agents that are somehow less likely to roll up debt is impossible. Those guys (agents that aren't ever going to roll up debt to you) are already successful and wouldn't want 80% and free leads. Or 90%. Hell, maybe not even 100%.
So, since you cannot cherry pick a bunch of superstar agents to come in, take 80% and free leads, you are getting the same poopoo platter as any other program: some good, some great, some bad, some awful. You have to, as an IMO, underwrite your own risk with worst case scenario in mind.
95% can't happen.
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We aren't a huge IMO and we do have the spreads to do it. It just can't be done. Those type of programs have huge appeal to low producers and no appeal at all to top producers. It does the opposite of cherry picking.
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Exactly. You know yourself Newby. ... there are just to many agents that waste time and never write anything. Yes you do get superstars, but now they have to write enough to pay for all the agents that got leads and can't write a policy.
- 16,887
Correct. The bad ones would ruin it for the good ones.
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Exactly. If everyone was hungry this would be extremely easy. I'd offer 5 dollar DM leads lol! We can dream. ...
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I believe it could be done with a "buy-in". So an agent has to initially contribute say $500 to get the process going (non-refundable) (sorta like a franchise fee). Initial compensation would be low to the agent (50% ???). After 4 weeks you have an evaluation. Agent either gets pulled from the program, kept at same level or promoted to a higher comp. Rinse and repeat every 4 weeks. Have qualifying levels.
The initial amount of money that the agent has to invest is sorta like a money pool. It spreads the risk that the FMO has to shell out for the leads. The benefit for the agent is they don't have to shell out around $2,500 for DM leads before they even see their first one (assuming we are talking 25 DM leads).
Anyway I'm not sure about the whole $500 "buy-in". I think it has to exist. I just don't know the amount. But the reality is the agent has to have something in the game. And the FMO has to have some type of platform that offers value. You just can't throw agents out into the wolves unless you want to be ate along with them.
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The reality is people can say that it won't work but I don't agree. Take timeshare sales for instance. It cost money to bring buyers through those doors. Timeshare salespeople aren't paying for those leads. They are given so much time or else they are canned.
I did a type of timeshare for a while and the cost of each person my boss paid the lead generator coming through that door was $400. I had exactly 5 minutes to qualify the lead. Over 5 minutes my boss bought the lead. But each person who bought represented a $5,000 commission to the boss. The big boss made over $5,000. If I sold I made $1,200. If I closed front to back with no manager it doubled to $2,400.
Talk about pressure though when I found out she paid $400 for each lead and I saw the lead bills.
The initial amount of money that the agent has to invest is sorta like a money pool. It spreads the risk that the FMO has to shell out for the leads. The benefit for the agent is they don't have to shell out around $2,500 for DM leads before they even see their first one (assuming we are talking 25 DM leads).
Anyway I'm not sure about the whole $500 "buy-in". I think it has to exist. I just don't know the amount. But the reality is the agent has to have something in the game. And the FMO has to have some type of platform that offers value. You just can't throw agents out into the wolves unless you want to be ate along with them.
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The reality is people can say that it won't work but I don't agree. Take timeshare sales for instance. It cost money to bring buyers through those doors. Timeshare salespeople aren't paying for those leads. They are given so much time or else they are canned.
I did a type of timeshare for a while and the cost of each person my boss paid the lead generator coming through that door was $400. I had exactly 5 minutes to qualify the lead. Over 5 minutes my boss bought the lead. But each person who bought represented a $5,000 commission to the boss. The big boss made over $5,000. If I sold I made $1,200. If I closed front to back with no manager it doubled to $2,400.
Talk about pressure though when I found out she paid $400 for each lead and I saw the lead bills.
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Good points.
My concern with the buy in formula is that I feel like if I'm gonna ask for $500, I can't really call the leads, "free". Just a personal issue. You're right, though, much more doable with a cost share.
