Proof of Production for Contract Levels

[bboman23]

True transparency begins when the recruiting agency publicly post minimum starting comp levels. I know FEX does this. The only reason marketing people would not make this public is to keep agents ignorant.

Most marketers do the same thing to agents, that agents do to FE prospects. They use minimum worded marketing of "hope and good fortune" in hopes to get an audience.

Transparency of comp levels is something I have done since joining this forum 10 years ago. At that time I was with EFES and I upset some of the recruiters at EFES by my unorthodox style of openly posting starting comp levels that turned out to be higher than many longtime agents under other Directors.

This is the fundamental problem with that business model structure.

Business Model
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These limitations are the reason why I left EFES and started FEX Contracting with Newby (Scott).

IMO these fundamental obstacles were the catalyst to recent changes over at 360. You cant fake it forever. You can only come on here so many times and "I will post how great you are, then you post how great I am" until someone feels slighted, or an agent wants to transfer, or maybe the overlord shows more favor to your marketing brother, that causes a blow up.

This is not a shot at anybody, I have worked within that model before and I understand the inherit obstacles.

TT

As I have stated before, I truly admire how transparent FEX is. I bought into the same thinking after seeing you and Scott post that on here. I posted mine on my site as well. Then I got in trouble from a couple companies for posting those levels (I think the same happened to you with Foresters?). Also it changed my business model up which I didn't like. So let me be clear, it is a GREAT way to market for y'all. It just doesn't match up to what I do and it has NOTHING to do with comp since all of my agents have street or higher. I just looked at your comp schedule and I am 5% lower on 2 companies and 5% higher on 3, so we are all in the same range.

The reason I didn't like it was the amount of emails I got saying, "Hey I see you have a 115% with this company, can you send me over a contract?" I do NOT just hire anyone. I have conversations and I am really picky on who I choose. I am responsible for the debt, so I make sure they fit what I am looking for. This forum keeps the IMOs honest for the most part, so my agents can easily go see your levels and decide to move to you if I was not putting them at the same levels....which I DO!

I think transparency can be a lot more than just posting commission levels though. In my career, I have had to release 9 agents in total. 3 of those 9 came back to me. Out of the 9, 2 were to FEX and it was not due to comp.

I do not see FEX as the "bad guys" or competitors. What you have built is 100% legit! I just do it a little differently. I am more of a hands on IMO and spend a ton of time 1on1 with my agents. FEX's model has been more of post a lot on here and you definitely get the majority of agents that come from here. They see the levels on the site, call up Mark to get contracting stuff, then get added to group chat and Friday call.

^^^That model has worked for you for SURE! Even though I do it differently, I don't believe either model is wrong.

 

[Tothetop]

Posting commission levels is good not taking anything away from that. However it is not truly transparent.

I get an IMO might offer 115 for a company and another IMO 110 for that same company. That's fine because maybe the IMO with 115 doesn't offer as many services as the one that offers 110.

However my point is that if that particular carrier maxes out there comps for agents at 120 let's say, the IMO should make that known to the agents even if the IMO cannot afford to give them that 120.

If the IMO can't afford to go that high at least let it be known so if the agent is doing big production, they are sending you business by choice and not because they are in the dark thinking they are getting the most they can get when in reality they can be getting more some place else.

If they can afford to give them that 120 then provide the agent with a comp grid that says if you meet this threshold in AP, then you will be automatically bumped 5 points.

This works out for both the agent and the IMO. It builds trust between the two so your more likely to get more of the agents business and recommendations by that agent to other agents and if the agent is maybe 10 or 15k away from the bump, they will send you more business instead of splitting their business with possibly another IMO they have a contract with.

The deal between the agent, the IMO, and the carrier is all independent contracting not employer/employee relationship. If everybody works together in a more straight forward fashion than everybody will benefit in the long run.

 

[HoosierDaddy]

Posting commission levels is good not taking anything away from that. However it is not truly transparent.

I get an IMO might offer 115 for a company and another IMO 110 for that same company. That's fine because maybe the IMO with 115 doesn't offer as many services as the one that offers 110.

However my point is that if that particular carrier maxes out there comps for agents at 120 let's say, the IMO should make that known to the agents even if the IMO cannot afford to give them that 120.

If the IMO can't afford to go that high at least let it be known so if the agent is doing big production, they are sending you business by choice and not because they are in the dark thinking they are getting the most they can get when in reality they can be getting more some place else.

If they can afford to give them that 120 then provide the agent with a comp grid that says if you meet this threshold in AP, then you will be automatically bumped 5 points.

This works out for both the agent and the IMO. It builds trust between the two so your more likely to get more of the agents business and recommendations by that agent to other agents and if the agent is maybe 10 or 15k away from the bump, they will send you more business instead of splitting their business with possibly another IMO they have a contract with.

The deal between the agent, the IMO, and the carrier is all independent contracting not employer/employee relationship. If everybody works together in a more straight forward fashion than everybody will benefit in the long run.

If you're with an orginazation that offers releases than as an agent you can always test your marketability if you feel you have reached a ceiling for your value.

A bird in the hand... take the 115 over the marketing tactic of 110 and a promise of growth.

Take the sure thing and if you become unsatisfied move.

TT

 

[rousemark]

does FEX have a structure for someone who wants to hire people? Or you mostly just hire agents. Like do you have production guidelines for groups?


I feel like all models within insurance have obstacles and the huge mistake most make is think that all these IMOs are hiring the same type of person.

Newby has posted time and time again that they are not a good fit for agents who want to build a downline... Their forte seems to be working with agents who choose to be personal producers and not recruit.

 

[Tothetop]

If you're with an orginazation that offers releases than as an agent you can always test your marketability if you feel you have reached a ceiling for your value.

A bird in the hand... take the 115 over the marketing tactic of 110 and a promise of growth.

Take the sure thing and if you become unsatisfied move.

TT

What ceiling? That's my point. Many agents have no idea what that "ceiling" is and IMO's intentionally keep it that way.

Your partner on another thread placed a wager that if one other member can show he has agents at 140, he will bump some contracts by 5 points. That to me says it all. Even if it was tongue-in-cheek, if I was working with this IMO it would rub me the wrong way.

Do you have five points that I didn't know that I can possibly earn and is it that expendable to you that you can place it in a wager? Again I would never have to wonder if I had a comp grid that said this is the max you can earn with this carrier and this is the max you can earn with me as the IMO.

 

[HoosierDaddy]

What ceiling? That's my point. Many agents have no idea what that "ceiling" is and IMO's intentionally keep it that way.

I think the ceiling is different for every agent. Agents will know when they are there when they cannot attain more in the free market. Don't count on promises is my point. Don't go shopping for a new Jag until you have the money to buy one... Same thing for marketers, don't tell me what you are going to do for me in the future, tell me what you did for me.

Agents get caught up with delusions of grandeur and marketers exploit those fantasies.

Get the best all around deal you can find and go out and produce. You then are in a position to get to your ceiling.

TT

 

[Tothetop]

I think the ceiling is different for every agent. Agents will know when they are there when they cannot attain more in the free market.

TT

Lol thanks. True marketer talk right here especially in that first sentence & I guarantee because of that first sentence you cannot say what the free market fully offers in the second sentence, not street level but max level.

 

[HoosierDaddy]

As I have stated before, I truly admire how transparent FEX is. I bought into the same thinking after seeing you and Scott post that on here. I posted mine on my site as well. Then I got in trouble from a couple companies for posting those levels (I think the same happened to you with Foresters?).

This has happened... However, it is not the carrier who truly cares. It is the other marketing organizations who can not offer these levels who call the carrier complaining that transparent organizations are hurting their profit margins.

Hypothetically lets say a companies top contract is 140%... They pay the same 140% comp for every dollar of AP generated regardless how many levels down it comes from. If the poor sucker that bought the lead and wrote the application has 60% contract the company still pays out the 140% and it is chopped up among the levels.

If the company puts no production requirements for their comp levels why shouldn't I be able to offer agents what I want? Its my risk, I'm on the hook. Its because other marketing organizations complain to keep their spreads and agents ignorant.

I'm glad that new organizations seem to be putting the squeeze on the old marketing guard. This is good for all us agents... We are also able to market regional FE products with much lower comp spreads...

TT

 

[Thedude]

Newby has posted time and time again that they are not a good fit for agents who want to build a downline... Their forte seems to be working with agents who choose to be personal producers and not recruit.

Idk! I feel like they are smart there and work with anything as long as it's profitable for the agent.

 

[HoosierDaddy]

Lol thanks. True marketer talk right here especially in that first sentence & I guarantee because of that first sentence you cannot say what the free market fully offers in the second sentence, not street level but max level.

I'm not sure why you're confused? It's a free market. Your max level hopefully is the level you're at. It's like free agency in sports?

We are all trying to figure out (and/or) raise our own ceiling within the market.

TT