Why Do I Feel Like I Am Being Nicked and Dimed?

[Advisor06]

Have been talking with a Mass agency and at the point where they want a decision from me but I seem to feel like making the move has so many costs involved. They seem to have a fee for everything, phone .03 a min, admin fees that go up each year topping out at $200 month, training fees, etc. They even told me that if they offer a financing option and I leave before the end of 3 years they will want the money back.

I could be wrong but is this the industry standard? I feel like all the risk and cost is on me, What's the point of being captive and where is the risk on the agency?

 

[rousemark]

Have been talking with a Mass agency and at the point where they want a decision from me but I seem to feel like making the move has so many costs involved. They seem to have a fee for everything, phone .03 a min, admin fees that go up each year topping out at $200 month, training fees, etc. They even told me that if they offer a financing option and I leave before the end of 3 years they will want the money back.

I could be wrong but is this the industry standard? I feel like all the risk and cost is on me, What's the point of being captive and where is the risk on the agency?

Not industry standard .. Most companies will charge you for licensing fees and possibly some initial costs but they certainly don't ask for 100% refund of financing if you leave before three years are up. Have never heard of a company charging .03 per minute to use the office phone. How do they enforce that? Do they have some left over old fashioned booths with coin phones in them.?

 

[funeraldirector]

A good deal is an easy deal...

 

[DHK]

Have been talking with a Mass agency and at the point where they want a decision from me but I seem to feel like making the move has so many costs involved. They seem to have a fee for everything, phone .03 a min, admin fees that go up each year topping out at $200 month, training fees, etc. They even told me that if they offer a financing option and I leave before the end of 3 years they will want the money back.

I could be wrong but is this the industry standard? I feel like all the risk and cost is on me, What's the point of being captive and where is the risk on the agency?

May not be "industry" standard... but it is standard with MassMutual. I had the same deal with them.

Here's a hint for you: the more hung-up you are about agency costs... the less confident you are in your prospecting and marketing plan out of the gate.

Most managers aren't worth their weight to hold down a desk... let alone train a new person to be very successful right away.

The old axiom may still hold true:
- Hire 'em in masses
- Teach'em in classes
- Sell all their friends and
- Fire their *****.

Wait till they tell you that they're a "LEAP Agency" and that if you want to split cases with senior agents, you'll have to become "LEAP Licensed".

I did tell you in another thread that I had a rather bitter experience and attitude towards MassMutual... right? Great products though.

 

[VolAgent]

That is pretty brutal. When I was at Mass, it was $150/mo. That included phone, cubicle and 500 pages of copying/faxing. The co-GA said we were supposed to be paying for long-distance minutes, everyone told him it was unlimited. He was making a fuss about it and didn't even know how he was being billed. Pretty sad.

That said, my current expenses blow that away. However, I make good money by investing in my business.

Personally, I don't believe you are going to be happy anywhere.

 

[moonlightandmargaritas]

Personally, I don't believe you are going to be happy anywhere.

The operative sentence, right there.

 

[Advisor06]

I understand you have to invest in your business but paying the GA's rent and being charged for copies, phone etc is a little bit of BS. They require you work out of the office and then say we are going to charge you.

Every time I asked the sales manager about the costs and fees he said "if your are earning a lot of money what do you care about the costs" never got a direct answer and it raised a huge red flag for me. I had to ask the recruiter to go over the charges and they would not send me anything in writing. I rather stay where I am before I got there.

I'm still waiting to hear how much financing they will offer but I don't like the fact that if you want to leave you owe all money back.