New Agent. Question on Contract

[lelandfallon]

Good afternoon
I have my life/health license and just recently
I am in the process of signing up with a IMO who is local. He said I will get local support and training. I am mostly focusing my efforts on Mortgage Protection with the intent to review other services with clients later on for other products that might help them if they have a need. My question is I am wondering if my contract is fare.
I am starting at at 70% rate and it increases as I sell more. Direct mail leads are about $30 bucks each. I have mostly worked in customer service but I am wanting to get into sales as a career.
I would appreciate any advise in this. Thank You.

 

[goillini52]

Good afternoon
I have my life/health license and just recently
I am in the process of signing up with a IMO who is local. He said I will get local support and training. I am mostly focusing my efforts on Mortgage Protection with the intent to review other services with clients later on for other products that might help them if they have a need. My question is I am wondering if my contract is fare.
I am starting at at 70% rate and it increases as I sell more. Direct mail leads are about $30 bucks each. I have mostly worked in customer service but I am wanting to get into sales as a career.
I would appreciate any advise in this. Thank You.

Is the training you're getting worth a 3rd of your commissions, because you're being charged full price or more for the leads.

 

[lelandfallon]

Is the training you're getting worth a 3rd of your commissions, because you're being charged full price or more for the leads.

You know I am not sure. I have no experience in this field so I believe it is beneficial for someone like myself that lacks the sales experience but I am great with people. To be honest I am unsure of how else to get started. I figured the 30% is just like any other venture where you take a slight loss to get going. What do you feel my best options are at this point?

 

[pcbinsurance]

Who is your IMO? You can get better contracts elsewhere and possibly better priced leads.

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"but I am great with people"
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https://www.youtube.com/watch?v=sCC_PxRWVI4

 

[goillini52]

You know I am not sure. I have no experience in this field so I believe it is beneficial for someone like myself that lacks the sales experience but I am great with people. To be honest I am unsure of how else to get started. I figured the 30% is just like any other venture where you take a slight loss to get going. What do you feel my best options are at this point?

If you're that green, this might be the best route for you...there are worse contracts. Be sure and read the contract. Make sure that they'll release you and that it's clearly stated about increasing your % as you sell more.


Why Mortgage Insurance? If you went FE you'd have better options.

 

[pcbinsurance]

He's correct. If you're getting 70% on all your term carriers, that's not the worst. Some term carriers only pay 80-90% street contracts.
As Illini said, if you decide to go to an IMO that specializes in Final Expense, you will get 110-120% street contracts and also have the opportunity to sell MP at higher comp with some of those same carriers.

 

[lelandfallon]

He's correct. If you're getting 70% on all your term carriers, that's not the worst. Some term carriers only pay 80-90% street contracts.
As Illini said, if you decide to go to an IMO that specializes in Final Expense, you will get 110-120% street contracts and also have the opportunity to sell MP at higher comp with some of those same carriers.

Yes from my understanding, i get 100% of the 70% upfront for the first 9 months. So if the premium is $100.00 a month, I would get $630 upfront commission and then my $70 bucks month 10,11,and 12. The company I am about to go with is called Symmetry Financial Group where in WI. I can do FE also, among the other stuff but I find I want to start with Mortgage Protection first because I have some personal stories of friends who lost their house due to the husband dying in a car accident. I just feel I can educate the customers more about this product more just starting out, and then I plan on following up with them a few months later maybe 6 months to review how else I can help them maybe with FE and such. Once I have $5,000 in annual premiums for 2 months then I go to 75% and it goes up from there. I am completely green to this as you said. I just do not know how else to break into it with such little experience.
I also plan on getting my own website and doing a monthly news letter. I have been reading this forum for about a week as a guest and decided to post for the first time asking my question about the contract because I have read some posts that say some people are getting robbed. I do feel comfortable with the guy who recruited me, and he told me he will give me 20 leads to start off at his cost, but then the rest are at my own cost $30.00 and it is for the direct mail ones. I have been reading the direct mail forums, but I am not sure how to start my own campaign for Mortgage Protection and get that rolling. Is my best bet at least starting off paying the $30.00 per lead?
Thank you all for responding so far. I truly appreciate you taking out your personal time in helping me with this.

 

[pcbinsurance]

What type of lead is it? Is it exclusive and fresh?

Not sure how the mortgage market is in Wisconsin, but to me, MP is a gimmick and you should sell insurance to people who need it (most people)---no matter if they own or rent. Focusing on paying off the home is good if they are exposed there, but replacing income is the #1 reason and paying for college is another.

 

[lelandfallon]

What type of lead is it? Is it exclusive and fresh?

Not sure how the mortgage market is in Wisconsin, but to me, MP is a gimmick and you should sell insurance to people who need it (most people)---no matter if they own or rent. Focusing on paying off the home is good if they are exposed there, but replacing income is the #1 reason and paying for college is another.

Thank You Steve for your reply.
Yes it is exclusive and fresh leads that go directly to me. I plan on providing insurance to anyone who needs it. I understand that you feel its a "gimmick" in how it is marketed. I feel it makes allot of sense. I will offer insurance to everyone whether they own or rent but just starting out I am trying to focus on a target market and get my feet wet. In a few months, once I have some experience under my belt I plan on branching out some but I figured it would be best if I focus on 1 target market starting out. Is my thinking wrong here?
Do you think I would be better off setting up my own direct mail campaigns?

 

[goillini52]

Yes from my understanding, i get 100% of the 70% upfront for the first 9 months. So if the premium is $100.00 a month, I would get $630 upfront commission and then my $70 bucks month 10,11,and 12. The company I am about to go with is called Symmetry Financial Group where in WI. I can do FE also, among the other stuff but I find I want to start with Mortgage Protection first because I have some personal stories of friends who lost their house due to the husband dying in a car accident. I just feel I can educate the customers more about this product more just starting out, and then I plan on following up with them a few months later maybe 6 months to review how else I can help them maybe with FE and such. Once I have $5,000 in annual premiums for 2 months then I go to 75% and it goes up from there. I am completely green to this as you said. I just do not know how else to break into it with such little experience.
I also plan on getting my own website and doing a monthly news letter. I have been reading this forum for about a week as a guest and decided to post for the first time asking my question about the contract because I have read some posts that say some people are getting robbed. I do feel comfortable with the guy who recruited me, and he told me he will give me 20 leads to start off at his cost, but then the rest are at my own cost $30.00 and it is for the direct mail ones. I have been reading the direct mail forums, but I am not sure how to start my own campaign for Mortgage Protection and get that rolling. Is my best bet at least starting off paying the $30.00 per lead?
Thank you all for responding so far. I truly appreciate you taking out your personal time in helping me with this.

I suggest You contact The Skipper(Twilight). He has a background in Mortgage Insurance and is very knowledgeable.

Insurance Forum - View Profile: TwiLight

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Thank You Steve for your reply.
Yes it is exclusive and fresh leads that go directly to me. I plan on providing insurance to anyone who needs it. I understand that you feel its a "gimmick" in how it is marketed. I feel it makes allot of sense. I will offer insurance to everyone whether they own or rent but just starting out I am trying to focus on a target market and get my feet wet. In a few months, once I have some experience under my belt I plan on branching out some but I figured it would be best if I focus on 1 target market starting out. Is my thinking wrong here?
Do you think I would be better off setting up my own direct mail campaigns?

It is a good idea to first focus on one market. I agree with Steve, I think you're focusing on the wrong market...last I heard the Real Estate market was down...limited prospects. Everybody's a prospect with Final Expense.