High Contract Levels Vs Large Spread
- Thread starter solinor
- Start date
- 16,881
Lincoln Heritage, NAA, and others will set you up right. They can set you up with the 100% contracts and all you have to do is get agents who will be happy selling at 60% contracts and you are all set. You will never have to sell again.
- Thread starter
- #3
60% contract is just temporary. In 5-6 months you can be at 75%. Isn't it worth it to take a 15-20% pay cut for a short period of time for the long term?
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Not to mention the agents that stick around are generally the ones who have the resiliency and work ethic you would like to be business partners with.
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Not to mention the agents that stick around are generally the ones who have the resiliency and work ethic you would like to be business partners with.
- 16,881
Your chance of keeping any decent producing agent at 75%, 85%, or even 100% with any Final Expense company is a pipe dream. Marketers that try to pitch the road to riches is by new green agents building a down line is a scam. They want you to recruit your friends at those levels because you are doing their job for them. The chance of you being in business 6-months from now is zero if you are trying to make a living building a productive down line with no skills, no experience, no history of success, no leads, and low commission levels.
You have to offer something agents are attracted to. I'm not trying to insult you. This happens all the time with agents new to the industry. But you have been "pitched" a pipe dream. Do not take the bait.
Some Lincoln agencies require you to maintain and write 8K or more a month. Which isn't much, but if you don't they take your entire team and you have to start from scratch.
- Thread starter
- #6
True, but what about a combination of FE and mortgage protection? That combined with annuities and eiul. My average size policy for MP is much higher than FE.
- 15,319
- 24,976
How long would you work for someone at 75% add to that little to zero renewals?
- 16,881
The street level commission for any new agent with Assurity's non-med term (which I assume is a good mortgage protection product) is 125% first year. Any agent that doesn't select his FMO from Craig's List ads or spam emails starts at 125%.
How long would an agent produce at 75% or even 100% before he started realizing that you are taking half his commissions? Any decent producer would jump ship on you so fast and the poor producers would eat you alive with chargebacks.
- Thread starter
- #10
What if he was willing to sacrifice half of his commission in the beginning for the long run? If you want to just produce, then yeah maybe an imo with higher commissions would be right for you. If you want to recruit and eventually pull out of the field, then maybe a company structured around a lower commission in the beginning with realistic opportunities for raises every 2 months would be a better option. Not trying to say one is right and one is wrong, maybe each is geared toward different things. And I've seen agents produce and make a decent living if they can write 4-5k per week, even on a 60% contract.
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