Captive Agent Scam - Beware New Agents

[Mark]

Let me shed some light on what some of the captive companies are doing to new agents. There are so many new agents getting license these days that they no longer have to train the agent properly or do anything like they did in the old days. Just a couple of years ago, I would tell agents that just got their license that it was a good idea to start off captive and when they learned this business to switch over to being independent. They use to take the time back in the old days to train an agent and teach him how to find prospects.

These days they are doing the friends and family approach. They want you to write down all your friends and family members’ names and phone numbers, and turn it in to them and then want you to try and sell them. As soon as you are done doing this, then you are gone. They don’t have to spend any time on you, because there are 5 other new agents waiting to take your place.

I know a guy that runs a captive company here in GA, that does this all the time.

They will also find a way, that you will own them money when it is all said and done.

The company knows their products suck, but the new agents can beg their family members and friends into feeling sorry for him and buying the insurance.

There is a reason why most of us here on this forum are independent and not captive.
The only benefit in going captive is if they are going to train you well and do some hand holding. If they are not going to do this and try to just ask you for your friends and family member’s info, then don’t do it.

You are better off finding you a mentor, an agent trainer, or another agent that is willing to show you the business then going captive.

Most agents on this forum that started off Captive do not say that way long.

 

[moonlightandmargaritas]

These days they are doing the friends and family approach.

These days?

The Project 100 has been a staple of the life insurance business since the beginning of time...

 

[Mark]

What I meant was that they are only doing this approach. As soon as you are done doing this, they are finished with you.

This is as far as many Captive companies MGA or trainers or going. They will not teach you how to prospect or do much of anything besides go after your friends and family members.

 

[captain94]

I thought it was "Standard Operating Procedure" Companies like Torchmark and PrimeAmerica have been doing that for a long time.

 

[LGilmore]

What should be really saying here is "Whatch Out for who you decide to work with/for"

When I was captive, I worked for 3 different managers. The first two were scum, pond freaking scum. By the time the last manager came in, I was already on my way towards the door. Had that third manager been my first and only, I'd still be with NYL.

Captive or independent this industry is full of people who will smile to your face and squeeze every dime out of you they can and think nothing of it. Doesn't matter if with a capitive company or an independent agency.

What experience teaches you in this business, usually through the burn process, is never really take someone who is trying to "help" you on faith.. verify.

You can be very successful and happy as a captive or independent, it just depends on who you have to associate with. For some, after a while it's nobody. It's safer that way sometimes.

 

[Beav]

Yes mark your right... I a a cap agent right now and you hit the nail on the head. Well good new is the I'm leaving soon and thank for talking to me about it...

 

[Bitnis]

I can verify that this is true. I went through this huge waste of time early last year. These days it is called "Project 200." If you cannot put 200 names on the list you probably won't be allowed in the door. I believe it's all they are looking for.

I got some training in a group atmosphere but from day one of the training they had us calling our friends and family. I went through about 100 names and got uncomfortable with it. I started asking questions about what other methods of prospecting I could venture into and basically got the door slammed in my face.

I understand they want you to start out SOMEWHERE. And if you have no experience than friends and family is better than nothing. But if you're looking ahead and have already called 100 people with very little results, you start wondering okay, what's next.

I think the captives like everyone else, don't have an answer.

What's your answer to "what's next" if someone were to ask you what they should be doing after the friends and family list is exhausted? We're talking life insurance here.

A business' goal is to make money. They've come up with a plan to throw as much mud at the wall as they can and make money at the same time. They probably get excited at the fact of bringing in a couple thousand new names a month and some flunkies to do the calling for them. It's what they are in business to do and they have nothing to lose.

 

[Jim Jenkins]

I just talked to an agency that offered me the "opportunity of a lifetime."

They sell F.E., I pay $360 every three weeks for mailers and I get 55%. If I meet the numbers I can max out at 70%

Build my own team and in a few years I will have "50-60k a year before I get out of bed."

He "doesn't rip off agents" like other companies.

I have to "interview" for more info.

 

[Crabcake Johnny]

Makes you wonder how the entire industry got stuck in this kind of system.

I can imagine a totally different system where agents were salaried - only the best and brightest were hired and they only worked consumer driven leads.

As the system stands now the supply of agents exceeds the natural demand. So how does that model sustain itself? You turn every agents into a "so how are you set for life insurance" at the grocery store, social events, etc...

Erase this entire system from you mind - like it never existed and imagine an agent going into an office. Not an office with 100 agents or even 50 agents. But an office with 5 agents taking calls all day from people who are actually looking to buy insurance.

 

[Guest]

Mark,
It's really no different in health except they don't recommend you hit up friends and family, which is worse, they don't train and you don't sell a thing. It's so unfair when they misleadingly offer an opportunity to someone who has a family, house, bills etc and then don't care when you fail, as if it's unimportant.

What I meant was that they are only doing this approach. As soon as you are done doing this, they are finished with you.

This is as far as many Captive companies MGA or trainers or going. They will not teach you how to prospect or do much of anything besides go after your friends and family members.