"Free" Leads for 35% of Street ?

sellingdog

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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?
 
For a 65% haircut those leads better be golden.

35% off of street would be more fair imo.


For $250/w you could send out 500 postcards per week... with a 1% response rate that would give you 5 leads per week at 100% comp.
 
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For a 65% haircut those leads better be golden.

35% off of street would be more fair imo.


For $250/w you could send out 500 postcards per week... with a 1% response rate that would give you 5 leads per week at 100% comp.

Excellent point. They have positioned their leads as "current customers" who have paid them a fee to set up their estates??

I need to ask more questions,
 
6-8 good annuity leads per week could easily cost you $1000. However, I still don't think that it is a good deal.

Let's say that you closed 2 and both were 100k 5 yr MYGAs (some of the lowest comp)...you'd only make 2k (vs 5-6k). You could have spent 2k getting those leads and still end up ahead.

Tyler's suggestion of 35% off of street would be more compelling. Now you're making more like 4k off of those same sales and you wouldn't have as much wiggle room if most of your leads didn't pan out.

Last point, it sounds like you've never sold annuities before. If the training is good, it might be worth an "internship" so that you can learn the ropes...just a thought.
 
Excellent point. They have positioned their leads as "current customers" who have paid them a fee to set up their estates??

I need to ask more questions,

Quiz them hard. And maybe try to speak to some other agents, who are on this program.

Don't take the word of the recruiters or owner, take the word from the agents.

Just some friendly advice
 
Excellent point. They have positioned their leads as "current customers" who have paid them a fee to set up their estates??

I need to ask more questions,


I would really pin down the average "need" for these clients.

If they really are existing clients of the IMO who are using them for estate planning, then they might all be slam dunks.... then it might be worth the haircut if all you are doing is taking orders... but if that is all thats involved I would think the IMO would keep it all for themselves...

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Where are you getting your mailing services for that price? What kind of response is that, a call, website visit?


Thats just an estimate for a 4x6 postcard. Plenty of online printshops are within that range depending on the type of cardstock and features you want.

Vistaprint isnt always the best quality but they have very low postcard mailing rates, especially using bulk postage.

I list a phone and email usually.
 
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?

It could be a good way to learn the ropes and take your lumps with someone else's skin in the game. If the leads work out, move to street level and drop your own mail. If they don't it only cost you some time.
 
Excellent point. They have positioned their leads as "current customers" who have paid them a fee to set up their estates??

I need to ask more questions,

Sounds like the Living Trust delivery/review. I would find out if that is the case. There are lots of problems with these. Especially the people behind them.
 
Thanks for all the great advice. You guys are correct that I have not sold annuities before, and I was looking at this as an internship so I can begin to balance my business.

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.
 
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