Re: Beginner's Guide to Insurance MLM
I just watched the videos for Independent Producers of America and UandI Win. It's the same old thing. Vision, Leadership, Changing Lives, the best thing since Vodka Martinis, etc...
UandI Win said that network marketing is "the franchise of the people". Now I am not an attorney (but I do play one on TV, and a damn good one) however I do not that it is against the law (ala FTC, the agency that governs franchises) to liken MLM to a Franchise. It is deceptive and untrue.
Why would an agent with any type of experience join MLM? The answer is simple - for a large residual income from other agents. But I think this can be done without MLM successfully.
You can be wildly successful by building a high-producing agency, going direct to companies (with a production commitment of course) and then offering decent contracts with $0 in commitments to independent agents. What's wrong with that???
I mean, if you're going to even bother building a "network" of agents, why not go direct to the company, give high contracts to all involved, forgo the entire churn-n-burn MLM thing, and not feel the need to recruit every friend, relative and client you lay your eyes on? An agency is going to be able to produce some great numbers without being MLM, and you will attract some of the best producers who would never consider MLM.
I have seen many MLM insurance hierarchies collapse. They never really last. Not for most anyway. Just a house of cards waiting to collapse. You may get a few years out of it. Not the lifetime amazing Tommy Vu - Real Estate Millionaire video that you were promised.
Now look at the MGAs and IMOs over the last 20 years. And look at your local insurance office that's been in business for 3 generations. Something has to be said for that.