What Do You Think of this GA Pitch?

[DHK]

The test is and isn't a big deal.

It IS a big deal for the management team that you score high with their parameters so that they could get corporate home office support for your career agent financing. If not, then it could all be on the GA's dime.

It also might not be a big deal because some big producers have failed such tests in the past. Mehdi Fakharazadeh comes to mind.

 

[Rich C]

You might want to do a google search before you sign up--

I would suggest: "national planning corporation reviews"

And for what it's worth, I've experienced serious lack of good faith on the part
of Guardian Life involving DI payment -- first hand. But I also don't think Guardian as a carrier has anything to do with the company you're looking at.

I'd stay away... far away

 

[SuperWoman]

Thanks for your feedback, Rich. I did research this Gen agent, Natl Planning Corp. It is not the same NPC you may be referring to. That is an investment house in CA. I was suspicious too until I dug in more. I looked into Fla's corporation site and verified the owners are who they said they were and not the other joint.

In other news, I was informed I passed the NYL test. Yay for passing!
I go tomorrow for a compensation presentation. "Show me the moooonay!". Then on Thursday another sales presentation/training type thing.

The Guardian agent asked to reschedule our Wed comp presentation. Have to wait till Monday now. I need to evaluate both these potential offers. And I'm gonna need help from everyone here!!

 

[SuperWoman]

I'm on my way to have the second meeting with the Guardian folks. They are going to present a comp anaylsis of all the millions I am going to earn up util retirement. Including their pension, residuals etc. I'm sure my eyes will get all glassy and illuminate with glowing dollar signs.

They also will be presenting a mock sales presentation with their experienced agents. I am curious to know why they want me to see it so early in this process? Any ideas

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I'm back. And I see dancing dollar signs

But seriously folks....I'm actually confused yet intrigued. Here's what I learned:

1. Apparently I scored very well on the SPQ sales/personality test. He explained the different components and it seems I am MDRT worthy. lol. I can sell yellow snow to an Eskimo.

2. The MP will accompany me on my first X number of appts while in training. When joint work is needed, he won't expect a split (50%) on cases with close family, or friends, but will on other clients. Same for joint work with other agents.

3. Compensation:

Yr 1 - 80% (decreases by 10% each year, till hit 50% where it stops, maintains for life thereafter)

Renewals: 18% ---decreases by 1% each year, stops at 8%, maintains for life after)

Draw: $3000 per month (Though can be adjusted depending on my needs, it's negotiable).

Training/Marketing allowance: Approx $6000. Not paid to me, but pays for some mailings, training events, hosting seminars/cocktail receptions promoting me to my sphere of influence, anything needed to market me. Also, one week training on The Living Balance software program in either Denver or NY. He will tailor a marketing program for me which will indicate the type of expenses necessary for that.

Mentor: He will mentor me personally and consistently. I asked his availability and he said he will be available to me anytime and all the time. Monday/Friday morning group trainings (Fri more directly with me and a few other newbies). Very hands on, though not micro managing.

Office space, technology, admin support at no charge. No rental fees They're pretty high profile. Posh 17th floor office in world famous Biscayne Blvd near the home of the Miami Heat, and killer view of Biscayne Bay and Miami Beach. See all the pretty people

I own my business.
Guardian pays me directly.
No assigning.

Gave me a lengthy comp report to show my income pre/post retirement. very long and confusing. One page gives average "sales" on first year agent:

Average product sold / Annual Premiums

1. WL $60k
2. 10/15YGT* $7k
3. 20/30YGT * $7k
4. UL $60k
5.10 pay* $12k
6. D.I. $12k
___________________________
Total $158k
(80%) $126,400 income

* - Don't know what these terms mean?

Is this realistic? Thanks for sharing your thoughts!!

 

[DHK]

Average product sold / Annual Premiums

1. WL $60k
2. 10/15YGT* $7k
3. 20/30YGT * $7k
4. UL $60k
5.10 pay* $12k
6. D.I. $12k
___________________________
Total $158k
(80%) $126,400 income

* - Don't know what these terms mean?

Is this realistic? Thanks for sharing your thoughts!!

10/15 year guaranteed (level) term
20/30 year guaranteed (level) term

10-pay whole life. This means you pay for your insurance over 10 years, instead of until age 121.

Let me digest more of your post and I'll give you more thoughts.

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Did they give you a model of the kind of weekly schedule you would need to keep in order to hit those numbers?

No charges for agent resources is a nice advantage.

No splitting of business for "controlled" business is customary. (That's family/friends, etc.)

I thought I remembered Living Balance Sheet having an agent cost of $300/month?

Having a training/marketing allowance is nice... but I wouldn't count on it in your first year. It's usually paid AFTER you have produced, so they are investing in your continued success. Keep in mind that this marketing/training allowance will only be for company & compliance approved activities and literature. So don't look at it like it's money you get to spend on anything you want. There will be an approval process required before they spend that money.

80% is a nice figure to think about your first year. But they said 50% there-after. You'll need to increase your production over time. If you assume a 50% payout in year one... you're looking at only $79,000.

Remember that "average" can include the non-performer and the star-performer. However, those numbers look very doable, as long as you prospect and fill your calendar according to their recommended weekly schedule.

I've been told that all you need - regardless of your goal - is 5 new prospects per week. 5 new prospects per week + 5 closes per week = 10 appointments per week. If your skills are good enough to secure a $1,000 average commissionable premium for each close... then that's $2,500 ($5,000 x 50%) per week. And that's just on life insurance sales.

It truly looks like they are really wanting to invest in you up front. It certainly looks good on paper.

Just remember that because they're footing the bill up front, you are promising them that you'll be sticking around. If you should leave before the end of this training period... you might be stuck holding the bill for the difference. Some companies do this. Edward Jones comes to mind - if you leave and go to a new firm, they'll go after that advisor for $75,000 in "training costs". So if you commit, commit for the duration of the training period.

 

[SuperWoman]

Did they give you a model of the kind of weekly schedule you would need to keep in order to hit those numbers?

No, not as of yet. I will be getting licensed in the next month and we will be conversing ongoing so this will be on my "questions to ask" list.

No charges for agent resources is a nice advantage.

Yes, I agree I was told the same by NY Life last week though I think there are some exceptions which I will find out tomorrow in my 2nd meeting with them.

No splitting of business for "controlled" business is customary. (That's family/friends, etc.)

Very nice to hear.

I thought I remembered Living Balance Sheet having an agent cost of $300/month?

I was told it is $100 per month. The one week training in either Den or NY is for this, which I'm told is a very valuable service. During the week training they pay my hotel/meals but not air fare.


Having a training/marketing allowance is nice... but I wouldn't count on it in your first year. It's usually paid AFTER you have produced, so they are investing in your continued success. Keep in mind that this marketing/training allowance will only be for company & compliance approved activities and literature. So don't look at it like it's money you get to spend on anything you want. There will be an approval process required before they spend that money.

Yes, I understand it to be specially for their approved services/events. I do not get the impression is will be paid to me but rather for me.

80% is a nice figure to think about your first year. But they said 50% there-after. You'll need to increase your production over time. If you assume a 50% payout in year one... you're looking at only $79,000.

My apologies, I wasn't clear. It is:

80% - year 1
70% - year 2
60% - year 3
50% - year 4 until I die. Or win the lotto. Or marry Warren Buffett (It COULD happen )


Remember that "average" can include the non-performer and the star-performer. However, those numbers look very doable, as long as you prospect and fill your calendar according to their recommended weekly schedule.

I've been told that all you need - regardless of your goal - is 5 new prospects per week. 5 new prospects per week + 5 closes per week = 10 appointments per week. If your skills are good enough to secure a $1,000 average commissionable premium for each close... then that's $2,500 ($5,000 x 50%) per week. And that's just on life insurance sales.

So, are you saying the goal is (in this hypothetical) 10 appts to get 5 closes? A 50% batting average so to speak?

It truly looks like they are really wanting to invest in you up front. It certainly looks good on paper.

I was surprised the draw was negotiable. And yes he did empasize the level in training, mentoring and investment was substantial. Basically the "If YOU succeed, then "I" succeed" theory.

Just remember that because they're footing the bill up front, you are promising them that you'll be sticking around. If you should leave before the end of this training period... you might be stuck holding the bill for the difference. Some companies do this. Edward Jones comes to mind - if you leave and go to a new firm, they'll go after that advisor for $75,000 in "training costs". So if you commit, commit for the duration of the training period.[/QUOTE]

I don't like job hopping at all, but especially in this particular endeavor. When I go all in, I'm going ALL IN. He told me they have 3 agents who came from NY Life and I think I am going to ask to speak to 1 or 2. Since I'm considering NY Life, I'd like to get their perspective on the differences between these two firms. Though he didn't diss them specifically, he did lament that they are so restricted at NYL inonly selling their products, whereas his firm has "400 other" carriers to sell. (Though Guardian is of course the preferred).

To be honest, I am concerned that his office is 20 miles away in downtown Miami, traffic is awful there and I want to spend time in office during the early days to learn, learn, learn. Obviously I will hear what NYL says and way this all out. Nice thing is the draw is not dependent on my generating premium like st NYL. Nor is the training allowance.

I do to sell 5 "products" in order to become an official rep. the 5/$15,000 commission deal. Though he said they cared more about the 5 products rather than the number. I think Id like to see that in writing, however.

 

[DHK]

I've been told that all you need - regardless of your goal - is 5 new prospects per week. 5 new prospects per week + 5 closes per week = 10 appointments per week. If your skills are good enough to secure a $1,000 average commissionable premium for each close... then that's $2,500 ($5,000 x 50%) per week. And that's just on life insurance sales.

So, are you saying the goal is (in this hypothetical) 10 appts to get 5 closes? A 50% batting average so to speak?

I'm talking about a 2-call appointment/close method.

1st appointment: fact-find
2nd appointment: close

Do 5 1st appointments per week... and 5 2nd appointments per week.

Keep that momentum going. Some won't buy. That's expected. But that's a doable pace.

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I don't like job hopping at all, but especially in this particular endeavor. When I go all in, I'm going ALL IN. He told me they have 3 agents who came from NY Life and I think I am going to ask to speak to 1 or 2. Since I'm considering NY Life, I'd like to get their perspective on the differences between these two firms. Though he didn't diss them specifically, he did lament that they are so restricted at NYL inonly selling their products, whereas his firm has "400 other" carriers to sell. (Though Guardian is of course the preferred).

NYL has, if memory serves, "first right of refusal". That means that you sell NYL first, and only offer an alternative company & policy if you don't get a favorable offer from NYL. NYL will tell you that you're not captive... but I think that becomes "really" true after 3 years with them.

This is from memory with the interviews I've had with them in the past. I never worked for NYL.

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I thought I remembered Living Balance Sheet having an agent cost of $300/month?

I was told it is $100 per month. The one week training in either Den or NY is for this, which I'm told is a very valuable service. During the week training they pay my hotel/meals but not air fare.

Okay... this is where I'm going to start to wonder about their sales processes.

I'm not familiar specifically with "Living Balance Sheet"... but I'm familiar with LEAP (Lifetime Economic Acceleration Process) and passively familiar with MoneyTrax (Circle of Wealth). Living Balance Sheet is a proprietary platform only for Guardian Life reps... combined with e-money account aggregation software. You probably have no idea what I just typed... but over time you'll know it.

Here's my concern for you: The LEAP system taught a 'comprehensive' approach using 6 meetings per client. Yes... SIX meetings per client. EACH of these meetings could take up to an hour.

Meeting 1: Approach
Meeting 2: Fact-Find
Meeting 3: Protection Component (take applications for life & disability)
Meeting 4: Savings Component
Meeting 5: Growth Component
Meeting 6: External Design &/or Referrals

It's great... but I felt it made the client acquisition process too long and too complex. It had a STEEP learning curve, and you were very dependent upon the technology platform to communicate your recommendations.

When something takes a long time, and is complex, the economic decision is to reserve this service for those who can make it worth your while. After all, this is a specialization and you're investing a lot of time, effort, energy, and money to learn how to serve your clients in this manner.

They will tell you that this process is wonderful and that it's worth it for each client. Just keep in mind that this is a long drawn out process... and if you're not getting paid quickly and well enough for it... you'll want to find either: better prospects... or a different methodology.

If it were me, knowing what I now know, I'd be looking for 5-figure premiums to go through that kind of process on a regular basis. If the prospect doesn't earn at least $100k, forget it. You won't be well compensated for your time and expertise in this process.

In short - get an idea of how they work with clients, and the processes they use. Ask about this when asking about a model work-week, so you can get an idea of the inputs and outputs you can expect for working their methods.

 

[kamkaran]

I think its fantastic and I believe that Its really really good one!!

 

[SuperWoman]

So I went to NYL's "round 2" yesterday, and was pretty disappointed. Not necessarily in the company but the bozo who presented to our group.

First, I was told several times it was to be the compensation presentation, follow by the "marketing and training" presentation 2 days later (tomorrow). It was the reverse. So I still do not have a specific comp plan from them to compare to Guardian's. A 90 minute session that I drove 45 miles to attend during rush hour traffic. I live in a large city (Miami), this was in Ft. Lauderdale. Do they not have another office here that they can recruit from? Anyhow, that's what it was a major, heavy handed recruitment session for 70 minutes. How truly awesome NYL is, blah blah. The guy (managing partner) says he has 25 yrs exp BUT has been with NYL only 45 days. For me, that gives him no credibility to tell me how awesome this company is, it only shows me he knows how to tow the company line well. He hasn't "experienced" the company long enough to sell me on it. Besides, we weren't there for the pitch, all of us had already had our first round with the recruiter or agent/owner.

So I was annoyed that I didn't get what I came for. The 20 minutes of showing us their marketing and training services was helpful and does show their solid program. I called my NYL friend in TX to ask the comp. Its basically 50%, with 4% renewals, plus training allowance (that must be triggered).

I need to see it all in writing to digest it. I am going to call the agent I interviewed with to ask her to review it for me so I don't have to go back tomorrow. So far, Guardian has more of my attention.

 

[briko3]

So I went to NYL's "round 2" yesterday, and was pretty disappointed. Not necessarily in the company but the bozo who presented to our group.

First, I was told several times it was to be the compensation presentation, follow by the "marketing and training" presentation 2 days later (tomorrow). It was the reverse. So I still do not have a specific comp plan from them to compare to Guardian's. A 90 minute session that I drove 45 miles to attend during rush hour traffic. I live in a large city (Miami), this was in Ft. Lauderdale. Do they not have another office here that they can recruit from? Anyhow, that's what it was a major, heavy handed recruitment session for 70 minutes. How truly awesome NYL is, blah blah. The guy (managing partner) says he has 25 yrs exp BUT has been with NYL only 45 days. For me, that gives him no credibility to tell me how awesome this company is, it only shows me he knows how to tow the company line well. He hasn't "experienced" the company long enough to sell me on it. Besides, we weren't there for the pitch, all of us had already had our first round with the recruiter or agent/owner.

So I was annoyed that I didn't get what I came for. The 20 minutes of showing us their marketing and training services was helpful and does show their solid program. I called my NYL friend in TX to ask the comp. Its basically 50%, with 4% renewals, plus training allowance (that must be triggered).

I need to see it all in writing to digest it. I am going to call the agent I interviewed with to ask her to review it for me so I don't have to go back tomorrow. So far, Guardian has more of my attention.

I'm too lazy to look to see if you've said this, but what do your foresee your target market being?