Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
I hear ya Rick and I appreciate your comments.
1) Remax has training for their agents I assure you.
2) Our agents "bring in" and "manage" their own clients. They buy leads from us or other vendors - we don't "provide" them.
3) Training? So - if an agent attends a Golden Rule Webinar they are to be considered "employees" of Golden Rule?
Again - the agent receives compensation from their respective insurance carriers - not us or the Sales Center Operator. In addition - the carriers issue the agent a 1099 - not us or the Sales Center Operator.
Basically - the agent pays a weekly lease fee to enjoy the amenities of the Sales Center. Should this same agent produce certain business volume through certain carriers - then this lease fee can be rebated.
In addition - leads are purchased by the agent from whatever sources they wish. There is no requirement to purchase exclusively through any particular vendor.
By the way - I'm thinking of titling the concept as:
Insurance Sales Center -vs- Insurance Call Center - comments appreciated.
Tom
P.s. - ok STI - happy? If i want to "quote" multiple responses in the same reply - how do I do that?
Originally Posted by healthagent
There are some working models of this but with differences. For example, Remax agents are contractors however they have an office - they rent space from Remax and also have to pay for extras.
However, Remax plus the beautician shop model (and I just called my CPA to check on this) are based on the fact that they bring in and manage their own clients. There is also the "training test" meaning those businesses do not train their contractors. They come in and work.
This would not be the case with the call center idea where leads, ie; clients will be provided by the call center. When I ran this idea past my CPA just now he said there's not even any gray area - it's an employee situation.
I replied with "but this guy apparently checked with his CPA who said it was fine." His reply? "tell him to fire his CPA since he doesn't know what he's talking about."
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
Originally Posted by myinsurebiz
Basically - the agent pays a weekly lease fee to enjoy the amenities of the Sales Center. Should this same agent produce certain business volume through certain carriers - then this lease fee can be rebated.
You know, this is not a bad concept for the agents who have a hard time working (and getting motivated) from home, for whatever reason that may be. See the "lonely" post on the forum for proof of that.
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
This is fine but I assure you a reality check is needed.
You are looking for 100% independent agents to pay you money so they can drive to work - purchase their own leads, manage their own business.
It won't take them 10 seconds to figure out they can do the same thing from home, cut you out and make a hell of a lot more money.
Turn-over will be massive. Most agent cannot write business regardless of how many leads you give them. Solid agents who can indeed write aren't gonna pay you to drive into an office.
While there are indeed some great ideas, this is not one of them.
------------------------------------ Health Insurance Agents: Training, Support, Discounts, E&O for $440 www.ihiaa.com
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
To address the "person falling out of the chair" - thus the reasoning for having General Liability insurance. ( note to self - get P&C license )
General liability? Probably not. If you get a P&C license, you will find out that a contractor falling out of a chair is not covered under general liability, unless you supplied the chair and the chair broke. Even then, it may not be covered, if the person should be covered under workmans comp.
To be safe, I would present a model where the agents are commissioned employees. I actually think a licensed agent can be an independant contractor, if they have freedom to work beyond your control, appoint with other carriers, write business outside of the scope of this agreement, and the freedom to set their own hours (i.e., won't be terminated for not showing up), and the contract is for a finite time. For instance, you can have a contractor come in for 90 days, even if they fail a few other tests, because of the limited time (basically, temp help type of thing). When I worked in the corporate world, we did this frequently, with contracts being extended. The person had to provide proof they were a separate business though (i.e., their own business license, work for others, etc).
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
Originally Posted by healthagent
#1 - You are looking for 100% independent agents to pay you money so they can drive to work - purchase their own leads, manage their own business.
#2 - It won't take them 10 seconds to figure out they can do the same thing from home, cut you out and make a hell of a lot more money.
#3 - Turn-over will be massive. Most agent cannot write business regardless of how many leads you give them. Solid agents who can indeed write aren't gonna pay you to drive into an office.
#1 - Only those that see the big picture. We'll offer a motivated business environment, pre-qualified leads and someone to turn to help close deals if necessary.
#2 - Yes - as noted in previous posts - we project that. However - some people need structure and the warm fuzzy of belonging on a team.
#3 - see #2.
My thoughts on it are - Some Will - Some Won't - Next!
Originally Posted by senior-advisor-indiana
What is September's idea insurebiz? Are you going to jump back into MA's in November? "Santa Calls Sales Center" in December?
LOL - I understand your point. I am "quick" to change my marketing strategy to what works for me. But - I'm on board with health and life - 100%. I'm going to work the Insurance Sales Center concept and still recruit Indy's that want to work from home. I have the energy to do both, and believe it will produce great results provided that I surround myself with experienced people. I have assembled a strong team!
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
You are looking for 100% independent agents to pay you money so they can drive to work - purchase their own leads, manage their own business.
It won't take them 10 seconds to figure out they can do the same thing from home, cut you out and make a hell of a lot more money.
Broke people are not going to pay you money.
They have no money for leads, equipment and expense.
I also stand firm on my comments that the IRS will not like this. The comparison to Real Estate is truly far different. Transactions are taking place off site and this is not the same scenerio by any stretch.
Real estate can stand the 1099 test - and insurance call center this is difficult , and in my opinion virtually impossible to pull off for a variety of reasons as mentioned.
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
Tom - again I do indeed see your idea; that agents will want this model to get themselves out of the house and into a more fun and positive environment.
However, you do not have the database of agents available to GAs who can recruit country wide.
You can only recruit agents within driving distance. I'd say no one's gonna drive in over 30 minutes so you have a very very limited agent database.
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
By the say Tom - simply listen to the voice of experience. Joe, for example, currently runs a call center and is giving you advice.
I'll tell you right now - I hired hundreds and hundreds of reps and opened 6 offices in five states - it was field work and everyone was 1099.
Just the confrontations you get into are crazy. I called the police at least 10 times over pay issues.
Often you are dealing with flat broke reps who you are telling, to their face, that they can make money.
Chargebacks? When I hired I used to get screamed at my agents - obviously it's not my fault when they incur a chargeback.
I had in incident running an office with the gas/utilities biz where a good rep got charge back around $1,000 - made his check $60 for the week. All I'll tell you is I'm lucky I'm 6.0 and can handle myself.
However, it'll be you in that office when someone got charged back and now can't make their car payment standing in your face yelling "ohh...you're GONNA cut me a check."
Again - over 5 years of experience running offices. UGA was no different - I wouldn't wish the abuse the division manager took on a dog.
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
Just the confrontations you get into are crazy. I called the police at least 10 times over pay issues.
My sales manager was arrested last month for punching a hole in my door after I demoted him. He spent 13 hours in county lock up, and was criminally charged.
I could tell you about call center operations all day long, the fun never stops.
Re: 9 Good Reasons To Operate A Insurance Sales Call Center:Go to Top
Originally Posted by TXINSURANCE
#1 - Broke people are not going to pay you money. They have no money for leads, equipment and expense.
#2 - I also stand firm on my comments that the IRS will not like this. The comparison to Real Estate is truly far different. Transactions are taking place off site and this is not the same scenerio by any stretch.
#1 - Financial assistance will be available. Depending on the agent's abilities - the lease agreement and any lead expenses can be negotiated to be deferred to a later date.
#2 - All agents are contracted directly to their respective carriers, we don't pay anyone anything. They receive a 1099 from the carrier. In the Sales Center concept - we are only leasing them a booth with certain amenities. We also have a lead program providing pre-qualified leads and live transfers. Agents aren't required to participate. Actually - our lead program is available to anyone wishing to buy into it.
The Sales Center provides a suitable business environment that any independent Insurance Agent is welcome to participate within. Should the agent be contracted through certain preferred carriers within our hierarchy - and should they produce certain levels of sales volume - then they will pay less for their booth space. Simple.
Originally Posted by healthagent
#1 - Tom - again I do indeed see your idea; that agents will want this model to get themselves out of the house and into a more fun and positive environment. However, you do not have the database of agents available to GAs who can recruit country wide. "
#2 - You can only recruit agents within driving distance. I'd say no one's gonna drive in over 30 minutes so you have a very very limited agent database.
#1 - Actually - I can recruit wherever there is a Craigs List. I do it everyday lately. 5 more today. 2 in GA and 3 in SC. With the Insurance Sales Center - we can do it anywhere there is space, electricity and an internet connection.
#2 - See #1.
Originally Posted by healthagent
#1 - Just the confrontations you get into are crazy. I called the police at least 10 times over pay issues.
#2 - Chargebacks? When I hired I used to get screamed at my agents - obviously it's not my fault when they incur a chargeback.
#3 - However, it'll be you in that office when someone got charged back and now can't make their car payment standing in your face yelling "ohh...you're GONNA cut me a check.
#1 - The agent is paid by the carrier - not us. The agent knows the deal upfront. We don't call the police down here in south Georgia - we will handle it accordingly.
#2 - This is between the agent and the carrier. We don't pay nor debit our agents on their insurance commissions.
#3 - Actually - if it happens - the Sales Center Operator will handle the situation. Naturally I can't be in many places at the same time. Business will be conducted as business, in a professional environment. Should someone take it to the extreme I'm sure they will be handled appropriately.
Tom
P.s. - Hey STI - gettin' good with the "quote" button . . .
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