"Free" Leads for 35% of Street ?

[CALTCAgent]

I am going to talk to some other agents and see if it is a living trust review. They said they close 1 of 6 so it is not a slam dunk.

With these they usually have you driving all over the place. Other agents have already been reviewing things, so the sales have already been found. Not a very good system when you get the details.

 

[scagnt83]

They said they close 1 of 6 so it is not a slam dunk.

Then its a total ripoff unless you are broke and cant market for your own leads.

 

[ThatGuy22]

FE to annuity is a tough jump to make. Completely different worlds if you are talking about a higher net worth annuity client. If you were just wanting to do the occasional one or two then it's not such a big jump.

 

[golfnut]

yes this is a group out of Texas that does actual estate planning documents...trusts...wills....they charge a LARGE fee and promise an annual review or update to their documents..so the agents have to agree to go and gather the updated information and return to the home office, in return you get the "opportunity" to sit in with theses Clients and potentially cross sell life and or annuity products...the problem is that unless you are doing the initial first annual review...another agent has already been to see the Client before you.....They promote that you get any referral business at 100 percent street...I know an experienced agent that worked the program for 4 months...he was not very succesful.

 

[Josh Landis]

Hey all, I have an offer from a IMO who will provide me 6 to 8 leads per week to sell annuities and UL. The catch is they are offering only 35% of street level commission. I sell mostly FE, where I buy my own leads and am "independent", and feel that I could work in these leads for some extra income.

I know these are two separate markets, but I feel can learn to sell annuities , they do have an in office training program.

What say you?

Sellingdog, I am an IMO and my advice is this is not a good deal. This is the IMO's job to help you market so that you can get your own leads, albeit this will cost you some marketing dollars. You would be better off in my opinion finding someone more senior in the industry and learning from them. 35% is too low. Are you more concerned with the marketing budget to attract leads or are you more concerned bc you need to learn how?

 

[sellingdog]

Thanks to all of you who took the time to reply, it is much appreciated.

About the jump from FE to Annuities, I agree they are two different worlds. I am not leaving FE, I like most of the people I like the $ and especially the fast close, which keeps me motivated. I am thinking about annuities to "diversify ", and to make some bigger commissions, I spent most of my sales career selling to C level people and organizations, so with the right training I will be able to sell in this world.

The group is out of Texas and Golfnut, I appreciate your input as that was my concern. Even though their training is "free", I still need to travel to them and cover my hotel... which means it's not free + the commission haircut. I don't want to chase old leads (customers) and be their delivery boy. This would probably take too much time away from my FE business as they did want me to be able to travel to see these folks.

Thanks Josh, I looked at your website which is very informative. I am going to focus on FE for now, but would like to have a discussion with you at some point when I decide to jump in. You come highly recommended.

Best Regards,

Bruce

 

[CALTCAgent]

The group is out of Texas and Golfnut, I appreciate your input as that was my concern.

If this is the group from Texas, there are posts on here about them. Not going to say too much as they get threatening with legal type stuff. Stay away!

 

[Charpress]

I am aware of an FMO that offers 50% of commission for leads.

Is it a good deal? Yes.

Because of the way it works.

They are spending a ton on national advertising to bring in people specifically interested in products or concepts that lead to products.

So, in a sense it is like splitting commissions with a producer who has the sale lined up, but has to refer it to you for one reason or another. It is a sale you would not have gotten otherwise -that is the key.

I guess this is getting to my point. I would not in a million years get involved with the old "Sell 'em a living trust and then back end them (literally and figuratively) once we see what they have in the bank." You can do that sort of marketing yourself, if that is your style, but at least keep some semblance of control over compliance. I know too may producers who have gotten the LETTER because of a complaint. Many times the complaint has originated from a broker at some stage of the "see what they have in the bank" process.