mikepspencer
New Member
- 3
I am a relatively new independent life/health agent. I am a good salesperson when I get in front of someone but I'm not so good at prospecting and marketing and I don't really have funds to work with in that regard.
I've been offered a position with an IMO out of Michigan that does most of the prospecting and marketing for their agents and provides 8-10 preset appointments per week. I would be their second agent in the state of Tennessee and their first in the Nashville area (they've told me they'd like to have two in this area total). The market is mostly seniors and folks aging into Medicare. They deal mainly with Med Sups, Med Advantage, Final Expense, Annuities, and Ancillary Health Products.
Here's the rub. They pay 50% of street level on the appointments that they preset and 70% of street level on all other business (self-generated, referrals etc.). Commission on self-generated business goes up to 100% of street level once I hit $60,000 in self-generated premium in a given year. I would be fully vested in my renewals after three years and $1,000,000 in production.
I'm trying to weigh this offer in light of what percentage of revenue an independent agent normally has to spend on overhead along with the time spent on marketing and prospecting versus of course what I'm giving up to have it done for me (mostly at least). The biggest pro it would seem is the fact that I could begin earning very quickly. The biggest con seems to me to be that over time, the amount of total revenue siphoned off by this arrangement would tend to increase, not decrease, as marketing expenses normally do.
Thoughts please.
I've been offered a position with an IMO out of Michigan that does most of the prospecting and marketing for their agents and provides 8-10 preset appointments per week. I would be their second agent in the state of Tennessee and their first in the Nashville area (they've told me they'd like to have two in this area total). The market is mostly seniors and folks aging into Medicare. They deal mainly with Med Sups, Med Advantage, Final Expense, Annuities, and Ancillary Health Products.
Here's the rub. They pay 50% of street level on the appointments that they preset and 70% of street level on all other business (self-generated, referrals etc.). Commission on self-generated business goes up to 100% of street level once I hit $60,000 in self-generated premium in a given year. I would be fully vested in my renewals after three years and $1,000,000 in production.
I'm trying to weigh this offer in light of what percentage of revenue an independent agent normally has to spend on overhead along with the time spent on marketing and prospecting versus of course what I'm giving up to have it done for me (mostly at least). The biggest pro it would seem is the fact that I could begin earning very quickly. The biggest con seems to me to be that over time, the amount of total revenue siphoned off by this arrangement would tend to increase, not decrease, as marketing expenses normally do.
Thoughts please.
