Insurance Agent Forum

[myinsurebiz]

The initial fee is to offset corporate expenses.

I'm certainly not going to lose money to assist others into starting their own business or creating an additional stream of income.

We are leaning towards $99 or $199. With licensing expenses - the initial outlay will be under $500 - which is a standard amount paid to join a MLM.

For someone to be able to jump start a business for less than $500 upfront and less than $99 a month (includes E&O) is within my mind a good deal.

Now - an experienced agent doesn't need our program. hopefully - we will be able to put together a program where we'd basically be a stepping stone for a "go-getter" and a home for those looking to utilize "leverage" in creating a solid monthly residual income.

In addition - our agents would have access to certain tax deductions as a home based or small business owner - not that others can't - just that most coming aboard more than likely couldn't take advantage of the tax breaks prior to joining . . .

We'll see I guess. We have a lot of work to do . . .

Tom

[healthagent]

The corporation should take care of corporate expenses - not agents. And it's a thin list of agents who are willing to pay anything upfront. And take a guess at the average IQ of newbies who pay upfront fees. I was dumb enough to join UGA but told them to choke on their "fee."

[Frank Stastny]

I would suggest that before you invest a lot of time and money in this project that you first hire one or two, at the most, agents who are new to the business and use them as your test sample.

Don't talk about the MLM concept, don't charge them for training just hire them as agent trainees. I would plan to interview at least 10 agents before you actually agree to work with one of them.

This will give you a good feel as to who is out there looking to become an insurance agent. Unless you have already done this I think you will be surprised by who is looking for this kind of work and responding to your recruiting efforts. I know I was when I first started to do that.

You are going to have a very tough time getting agents to pay any amount let alone $500 up front and $99 per month. Several times I gave new agents money for gas so they could go on appointments. They definitely did not have the kind of money you are talking about.

Something else to consider, you are talking about them working part time. There are very few people who have achieved any degree of success working part time at anything. It is going to take a strong commitment to do what you will be asking and typically part time people aren't willing to do that.

It sounds more like you plan to make your money from the people and not from their insurance sales. I assume that you are going to have all the business they write in the agencies name so when they leave you still retain the renewals.

Now we are back to what John said earlier regarding the IQ of newbies who are willing to do that.

I admire your enthusiasm for this concept but I think you have several hundred miles of rough road and hairpin turns ahead of you.

[healthagent]

I was not unsuccessful when I hired - in fact I was to a point where my agency was chugging along nicely. However, it was obvious that with the same amount of time and energy invested in hiring, training and supporting I could be making more on my own with less headaches.

Just where are you finding all these new agents? Newbies get pummeled with mailers upon getting licensed. Most new agents are already sponsored by captive outfits when they get licensed.

I agree with Frank - it sounds to me like you're trying to create a "I win, I win" situation so when agents don't write crap you still get paid. Great...just what this industry needs more of.

[thomasde]

Didn't the guy that wrote the book "All You Can Do is All You Can Do, But all You Can Do Is Enough" already do this MLM thing? Think his name was Art.

[myinsurebiz]

Frank said - " Don't talk about the MLM concept, don't charge them for training just hire them as agent trainees. I would plan to interview at least 10 agents before you actually agree to work with one of them. This will give you a good feel as to who is out there looking to become an insurance agent. Unless you have already done this I think you will be surprised by who is looking for this kind of work and responding to your recruiting efforts. I know I was when I first started to do that. "

As we speak - I have 7 people taking their pre-licensing course. They responded to some ads I ran and loved the idea. They all signed at $99 enrollment fee + licensing expenses + $49 per month. 100% of them had NO problem with it and joined same day. I have another 40 leads I'm following up with this week. When these people can make $600 on just 3 MA deals - it's peanuts to them - not even an issue actually.

" Something else to consider, you are talking about them working part time. There are very few people who have achieved any degree of success working part time at anything. "

I respectfully disagree. There are thousands of people from all walks of life enjoying a substantial residual income working "part-time" in a MLM environment.

" It is going to take a strong commitment to do what you will be asking and typically part time people aren't willing to do that. "

I'm not going to require them to do anything. There aren't any quotas to meet, meetings to attend, etc. They can earn as little or as much as they wish. The tools will be provided for them, but it's ultimately up to them to make it happen. Everyone will have an upline to lean on.

" It sounds more like you plan to make your money from the people and not from their insurance sales. "

LOL - $49 a month isn't what makes me tick. Basically - the fees are utilized to fund over head and expenses in the beginning. Those making money with the system / program will realize it's just a cost of doing business like leads, phone bills, internet access, etc. Those not making any money will have a decision to make. Also - we will have ongoing lead generating projects, so if someone decides "sales" or "insurance" isn't for them - they can still make a few bucks by generating leads in the field, via the phone, via the web, etc.

" I assume that you are going to have all the business they write in the agencies name so when they leave you still retain the renewals. "

A person from the board suggested we do that. We aren't into suppression - we're into growth. We won't retain everyone - but, they were free when they came - they'll be free when they leave.

Since we will be utilizing a level compensation system - the upline still deserves to get paid - so, we will probably do that. However - the writing agent would still earn their respective share provided they still service the client - whether or not they still work for us or not. Over-rides are a different story. If an agent wants to earn "team over-rides" - then they must qualify monthly to do so. The first qualifier is they must maintain a certain AV each quarter. Now - if someone has left the group - the chances are they won't qualify and the over-rides will just rollup due to compression.

" I admire your enthusiasm for this concept but I think you have several hundred miles of rough road and hairpin turns ahead of you. "

Man! You're not kiddin' . . . We'll keep it real simple, do what's right and everything else should fall into place.

John said - " Just where are you finding all these new agents? Newbies get pummeled with mailers upon getting licensed. Most new agents are already sponsored by captive outfits when they get licensed. "

We are attracting the stay at home mom/dad, truck driving couples, college students, laid off workers - anyone wanting a change. Anyone in the biz already - we don't really want - no offense. Thus the reasoning for us to rep only a few products - keep it simple, shorten the learning curve and still offer the client quality products and personal service.

" I agree with Frank - it sounds to me like you're trying to create a "I win, I win" situation so when agents don't write crap you still get paid. Great... just what this industry needs more of. "

Exactly the opposite. We're creating an opportunity for someone to get into the business at minimal cost WHILE they learn the ropes. In addition - recruiters want to be compensated for finding the agents, training them and providing the TLC the new agent will require - they aren't going to do this for free. In addition to the fees - the first 5 deals a new agent writes are shared with the recruiter (upline). Then the agent goes to a 75% contract. The max on personal will always be 75% - the rest is networked and shared via the team. Should an agent want more than 75% - they are free to choose their path of least resistance. We aren't re-creating slavery - we are creating an opportunity. Everything is going to be in black and white.

Thomas said - " Didn't the guy that wrote the book "All You Can Do is All You Can Do, But all You Can Do Is Enough" already do this MLM thing? Think his name was Art. "

Yes! He did it very well actually. He stay focused - very few products and provided many with an opportunity. I was one of them in 1984 - but, it wasn't for me at that time. Trust me - the upfront was more than the $99 we are thinking of charging. Coach Williams has said to this day he regrets selling the company.

I'm actually trying to get an audience with him to "pick his brain" if he is willing. He's less than 2 hours away - but, it is difficult contacting him.

The spin off from ALW is Primerica and while many think they are "over-priced" in the marketplace, they have had positive growth and revenues year after year.

Note: They reasoning for me asking questions, seeking advice from this forum and other forums, calling those with experience to see what works for them, etc - is so I can structure a sound company from the get go.

We want to have a solid foundation, focus on a few core products and attract new clients knowing we can compete while offering them excellent service, competitive rates and quality health solutions for their families.

We'll see . . .

Tom

[Frank Stastny]

You have obviously put a whole lot of thought into this. The problem I think I'm having and maybe some others is that I am thinking insurance and you are thinking MLM.

I have never been involved in any kind of MLM therefore know nothing more about them than what I have read. I will say this, you seem to have "all" the answers or at least the ones you need to get this off the ground.

When this "takes off" and you are flying over Missouri in your private jet have the pilot blow the horn.

[healthagent]

Wonderful - truck drivers and stay-at-home moms selling insurance. And here I took insurance seriously.

I don't want my attorney to be part-time, I don't want my physician or CPA to be part-time. Thinking you can have part-time agents shows you think little of this profession.

You can cause serious financial damage to someone in this industry if you don't know your stuff. I'd never hire anyone put a full time career agent.

Client: "So, if I'm out of network with this HSA plan what happens?"

Part-time Agent: "Well heck if I know. I'm just part-time - gotta run to make at 4pm"

[myinsurebiz]

Frank said - " You have obviously put a whole lot of thought into this. The problem I think I'm having and maybe some others is that I am thinking insurance and you are thinking MLM. "

Insurance products are a natural fit for the MLM structure. No inventory to stock and a product that most people need, have or want. From the outside looking in - Pricing seems to be pretty much identical per company - so, it's not about beating out the competition, as much as, it is about finding the client the best deal with the best benefits for them and their situations.

" I have never been involved in any kind of MLM therefore know nothing more about them than what I have read. I will say this, you seem to have "all" the answers or at least the ones you need to get this off the ground. "

I am learning every minute. Marketing and Recruiting is my niche - now, I'm learning the "industry", the "products and the in's and out's of insurance. Will I learn it all tomorrow - no way. However - if we surround ourselves with good people that "know" the biz - the rest will happen.

" When this "takes off" and you are flying over Missouri in your private jet have the pilot blow the horn. "

I hate flying. I appreciate your "high five" - and if we put together the package I believe we are capable of - then the "sky" would be the limit.

John said - " Wonderful - truck drivers and stay-at-home moms selling insurance. And here I took insurance seriously. "

Diversity is the main reason why insurance as a MLM product makes sense. Anybody with proper training AND support can sell anything. However - with insurance it doesn't seem like "selling" - but rather a person earning the trust of a client and offering them products that they already have, need or want. So - should one be able to earn the trust AND have a comparable product or service - then it isn't so much a "sale" as it is a placement - in my humble opinion . . .

MLM is perfect for a "feel good" product like insurance. People "feel good" when they are protected and they "feel good" when doing business with someone they already know or know of. Now - since only a certain 5 of business can be family or coworkers - friends and neighbors are a great start. Then move them out of their "comfort zone" and send them on a pre-set appointment or teach them how to work from home with a dialer in their pajamas - now, we're cooking with grease. BUT - teach them how to show 3 other people how to do the same thing they are doing, and they show 3 and they show 3 - get it? All the while - marketing products and services that the client already has, needs or wants . . .

" I don't want my attorney to be part-time, I don't want my physician or CPA to be part-time. Thinking you can have part-time agents shows you think little of this profession. "

I know many paralegals that know just as much as their employing attorney. CPA's utilize subagents. Doctors utilize PA's or Physician Assistants. Why? Duplication. They can get more done in a more efficient manner. Now - do you pay less for this service? Are you getting a lesser amount of service or a cheapened product? No.

John - I don't " think little of the profession " - I'm just providing a different vehicle to get the products / services into the hands of those needing them and creating opportunities along the way for anyone willing to do what it takes to learn and grow.

" You can cause serious financial damage to someone in this industry if you don't know your stuff. I'd never hire anyone put a full time career agent. "

Agreed!

It's not whether someone is part time or full time - what matters is their knowledge of the product, their understanding of the client's needs and how to pair the two together. Thus - the reasoning for our limited product lines. The fewer the products - the more focused the training can be and the shorter the learning curve. We'll have certain agents contracted with most every carrier - so, if a client needs a specific deal or wants a specific companies product - we'll be able to accommodate them.

In addition - each deal is reviewed by the upline. The upline also calls the client to insure their understanding of the deal being made. In a replacement situation - a client services rep from corporate will contact the client as well. We're not just cutting loose a sales force that has zero knowledge. Training will be key. Follow up will be mandatory.

This is precisely the reason for me posting here and learning from everyone. We want to do it right. We realize the importance of the industry and it's products. Over loading, churning and rolling a client will not be tolerated. We will have ultimate control over the business submitted through us.

E&O ??? - is there a blanket policy that would cover all our agents - or, will everyone have to have their own.

Thanks,

Tom

[healthagent]

Well the best of luck to you. Most GAs crash and burn since they can't get full time agents to write business. It'll be interesting to see how hiring part-time works.

Also, the learning curve for new full-time agents before they actually know what they're doing it at least six months. Part-time? Well in about 2 years they should be up to speed.

[senior-advisor-indiana]

Obviously you can not make it on your own so you will be looking for a couple good agents to carry you. They will see through it pretty quick.

[myinsurebiz]

" Well the best of luck to you. Most GAs crash and burn since they can't get full time agents to write business. It'll be interesting to see how hiring part-time works. "

In the beginning I am going to be actively marketing myself 2 or 3 days a week to generate revenue. As we bring people on - they'll understand that it will be 4 to 8 weeks before they may realize any income. Those willing - will be able to market MA's that will pay sooner than Health / Life. We'll also be generating our own " feet in the street " leads - so, out of pocket costs will be lower for the agents.

" Also, the learning curve for new full-time agents before they actually know what they're doing it at least six months. Part-time? Well in about 2 years they should be up to speed. "

No offense - but in less than a week I learned enough about MA's in our area to be able to effectively close deals WHILE providing additional benefits to the client. If I wasn't wasting 4 weeks waiting on my FMO to get my license - I'd already be earning revenue. Future agents can be sponsored in a day with a new company I've discovered, so they'll be able to begin generating sales quicker.

Our plan is to send new agents out to pre-set appointments in teams of two with their upline on "ride alongs", or two new agents teaming up on appointments with their upline there virtually via phone or webcast. There will be strength in numbers and the upline will be able to provide assistance with details or closing. All new agents must "ride" along with an upline till they feel comfortable leading the cause and the upline signs off.

Remember - the majority of new agents coming aboard will have another source of income OR they will be new to the working class and not replacing any lost income - since they had none prior to joining. However - Someone wanting a fast track, and that shows above average ability will go a different route.

With only having 3 or 4 choices per category, ie: MA, Supps, Health, Life, etc - learning product knowledge will be easier and the learning curve will be shorter.

As stated earlier - training and follow up will be the keys to everyone's success. I imagine it won't be easy at first - but, once leaders rise to the top and begin to manage their downlines - it will get easier.

I actually talked to someone today that recommended partnering with semi-retired experienced agents to manage incoming agents. Someone could manage 4 to 6 downline agents and produce INSANE over-rides.

Many options. I'm sure we'll need to adapt and adjust as we go. We're willing to give 100% to make it happen.

I appreciate all the suggestions and comments.

Tom

[myinsurebiz]

" Obviously you can not make it on your own so you will be looking for a couple good agents to carry you. They will see through it pretty quick. "

I'll be personally selling 2 or 3 days a week while building the team. As far as downline agents - we aren't "looking" for present day agents - we actually prefer to attract those with 0 experience. Now if we grow faster than we can produce upline agents - then, we will seek out seasoned agents as stated in the post above.

Over the last 3 months - I have personally witnessed a ex-truck driver write 10 to 20 MA's each week while working only 3 days. I've witnessed construction workers write 5 to 10 a week while working only 2 or 3 days. Waitress started in January and is knocking down $2k a week.

This is in addition to the final expense, Supps and Term. The trucker guy - less than 6 months in the biz and he's putting Annuities on the books.

No need in you being insulting indiana jones . . .

Tom

[senior-advisor-indiana]

Where are my boots?!?!

This shieet is gettin pretty deep in here!

[midwestbroker]

MLM Vs. Insurance

Most MLM works because it is a supplemental vitamin that has no health claims what so ever, but is designed to make you feel better or make up to make you look prettier.

Sounds like you are going to do a UGA type system. Most UGA agents are there less then 6 months and do not know any more about insurance from the day they started.

I agree with John. I hope you do right and do well, but nothing beats a professional agent.

[senior-advisor-indiana]

You are definetly going to need E&O coverage and maybe PPL.

Are these truck drivers able to keep up on their logs and able to get the required sleep?

We do not need them ruining people's lives with the wrong coverage and traffic accidents too!

( I have nothing against truck drivers)

P.S. It is Mr. Jones to you.

[myinsurebiz]

I understand your concerns.

Basically - we're creating an opportunity for someone wanting to do something different in their lives, increase their income and be able to spend more time doing the things they enjoy instead of working 50 hours a week.

Before someone can go sell on their own, they will have to convince their upline they are ready: Complete simple worksheets on the products they want to market, complete their "ride alongs" and be able to perform well in a "sales" skit - either online or offline.

We anticipate the learning curve to be 90 days for our base products and general sales knowledge - presentation, overcoming objections and asking for the sale.

Back in the day - ALW had it going on because they believed in product knowledge training AND only offering a few select products. We will emulate that model - but, have a few more choices for the client.

Thanks,

Tom

[CHUMPS FROM OXFORD]

"ALW ... We will emulate that model"

Then, you're in big trouble.

[myinsurebiz]

Why is that Chumps?

Emulating the training and limited product line is what I was referring to. They used the K.I.S.S. method - and it worked. In their day - thousands joined them and millions knew them. Now - there is a Primerica office in just about every U.S. city . . .

ALW grew beyond anyone's wildest dreams. They did it with a over-priced product and still creating a HUGE book of business.

With the high commissions in the industry - insurance is a perfect fit for MLM. These days a MLM doesn't have to inflate their product price just to pay out decent commissions to the uplines. They just have to represent the insurance company that the client needs or wants . . .

What's crazy - is way before I came onto this board, perhaps before I came into this world - the insurance industry was already an MLM. Think about it? The way most companies are structured is by using what they call a "hierarchy" - now, that isn't anything more than a fancy name for MLM or Multi Level Marketing . . . Now is it?

The only difference in our business plan is that it is designed to allow most anyone to jump aboard and build their business. Part time or Full time - who cares as long as they represent us ethically, morally and truthfully? If their State's DOI accepts them, and we feel good about them - it's on . . .

Tom

[healthagent]

If I asked your trucker selling annuties 5 detailed questions about annuities he's get all 5 wrong - so would you.