How Could A MLM Company Make Money With Insurance Products?

[0b1kanobee]

I have a good friend who is the president of a MLM company. Anyway he has approached me with the idea of putting insurance products in his company. He doesn't want them to be sold by the MLM independent distributors but made available for them perhaps as a benefit and a paid benefit at that. He would like to somehow set it up so those in the company can make compensation but without being licensed I told him it would be impossible to do it legally as far as I'm aware. We are also looking at the idea of discounts on products but I don't see that as doable either. Basically, he has given me first dibs to find a way to do this. If I can't, then he'll proceed to the next level. He however trusts me to do the right thing for the company. There are a lot of crooks out there and he has been burned a few times in getting this national company off the ground.

So, anybody have any idears on how to get health insurance, life insurance, dental insurance and maybe down the road auto and home into this type of business model so that the members can get some type of benefit out of it and the company can make money?

The only thing I can think of is the members buying through the affiliate (me ) and then having a % of the profits donated to a charity of their choice. I'm really at a loss to figure this out but then again I've only been thinking about it for a few hours.

There are currently about 1,000 members but if it goes as planned, it could hit 100,000 in a short period of time. I'm not at liberty to divulge what mlm it is for obvious reasons. We did a test run tonight (dipped our toes in the water) and it looks like out of 30 people, we have appointments for 4 life insurance policies, 7 health insurance polices and 5 med sups along with 2 financial plan reviews. I'm not sure many of you know how mlm people think but they tend to do business with like minded individuals and if the 'head guy' has invited you into their den, then you have already been pre-screened.

Anyway, just curious how this could be incorporated into the actual company for products/benefits and is there any money for associates to be made somehow? This is actually a good mlm and I know some of you won't believe that and that's ok, to each his own. However I met two people new in the business who were just checking their 'back office' after the meeting and one just had $75 deposited to her account and the other $40. A lot of people could of saved their homes with a few extra hundred bucks a month in these hard times. I was very happy for them. Anyway..........

 

[Cornelius]

I think YTB (Travel MLM) tried something like at one time with life and Health. As for Home/Auto I do think Primerica has some sort of affiliate program with a company where in some states the agents do not require licensing and get paid a referral fee so if one is doing it others should be able to also.. Of course I could be wrong with this info.. But it should be easy enough to verify.

 

[jhuang]

Primerica used Answer Financial for their Auto and Home. Now that Answer has been sold off.

I'm sure there can be a carrier that can underwriter it for a benefit of the group, the group is large enough for them to run the actuary.

Find the top guys that will talk to you. Good luck, this can be a good story to write about!

 

[proadvisors]

Primerica has a very smart pay structure that you can get very wealthy from. I don't like their products though. I use to be there but I know a lot of guys who made over 500k at pfs.

The smart guys who go wide and recruited a big base shop have financial stability that is amazing.

 

[0b1kanobee]

Even though this is a group, it is a mixed group. Some have health insurance through their work. Some can't afford any at all. Some are over 65. They are scattered across the country. I'm sure their are some other reasons too. Some just might not want the benefit just like some in the group might not want to buy the vitamin line.

However if there was a monetary incentive for them to do so (make money or tax deduction). See because it is a product of the mlm or an expense of doing business, it should be tax deductible (I think.........guessing at this point as I write this). It really boils down to incentive though, a monetary one. If somehow a percentage of profits could be diverted back into the matrix or money pool for the independent distributors, that's what I need. Funny thing is this group wanted nothing to do with vitamins 8 months ago. After the meeting was over, there were vitamins being passed around like gorilla biscuits.

This is a different model mlm. Nobody is going to get rich with it. The goal of this mlm is to get distributors enough money to earn a living while giving them time and flexability to spend with the ones they love, to get people back to work or to put that extra $500 a month in someones pocket so they can pay their mortgage. Most mlms feature a handful of distributors making BIG money and most everyone else sucking wind. This one won't go that way. I guess you could call it a Socialist mlm vs a capitalist. As a matter of fact, a buddy of mine who was making 50k a month in a company called Excel Communications years back and is a mlm compensation expert (he write comp plans) won't even do this business because the comp plan is designed so that everyone makes money and when that happens NOBODY makes HUGE money.

You would think they are a bunch of Obama lovers or something but actually the ones I have meet are more like Ron Paulers and Tea Party people.

I'm hoping to get a head start on this. The president is wanting to get something now. I want to spring the trap at a round 10,000 members.

 

[Norwayguy]

The only thing I can think about is association marketing...I'm aware of a carrier that offers discounts on thier DI product to associations and I think the association recieves a piece of the business. I don't see how the MLM could then stretch that small piece to cover the typical MLM comp grid.

 

[Franz Kafka]

Life is short. Run an honest business. People who start MLMs go straight to hell (no purgatory). Everything about MLM is evil. It's a dishonest way to make a profit. Life is short.

 

[0b1kanobee]

Run an honest business.

You mean like the insurance business?

If 'this' mlm was dishonest, I wouldn't have been asked to help out or be a part of it. If it was dishonest, the owner would already be in Tahiti a while ago. Since the government isn't doing anything about the employment situation and the private sector is not either, my friend decided to take it into his own hands.

He has been a whale in 3 different mlms (always makes big bucks) and is sick of seeing only a handful make big bucks. He's spreading the wealth in his mlm to a big degree. Nothing dishonest about it however I don't think Joe The Plumber would approve.

 

[AllenChicago]

He has been a whale in 3 different mlms (always makes big bucks) and is sick of seeing only a handful make big bucks. He's spreading the wealth in his mlm to a big degree. Nothing dishonest about it however I don't think Joe The Plumber would approve.

Obewon,
Why would he want to insert the MLM company into the revenue stream? From what you say, he simply wants to help his distributors out of empathy and caring about their well-being.

I just did a Google search on MLM Health Insurance for Representatives. There are quite a few companies that offer it. Give one or some of them a call to learn how it's set up.

For several years I've received periodic checks from a couple of MLM companies. Just play money, but it's cool getting residuals from Non-Insurance sources. Good luck!
-Allen

 

[Oliver Realize]

Am I wrong or are most insurance companies already set up like MLM's. You work hard get results then get your own agency and the process starts over. And if you have agents underneath you, you get your cut.