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.
What specifically would I get as agent for the initial enrollment fee + $49 a month? Website? Sales Manual? Webinars? Leads? Business Cards? etc. etc.
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).
Are you talking about 75% commission on life products and/or 75% of a defined payment schedule entailing the different insurance products you market. How do you handle chargebacks?
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[COLOR=#000066]"Tell me and I will forget. Show me and I will remember. Involve me and I will understand." Confucius
" If I asked your trucker selling annuties 5 detailed questions about annuities he's get all 5 wrong - so would you. "
I've stated all along that I'm personally learning the biz from ground zero, so since I haven't begun my training on annuities - you have a point. Make the same statement a year from now and we just may have a challenge.
Now - I can't speak for my friend's knowledge on annuities - but he must be comfortable enough with it to sell it.
Salpro said - " What specifically would I get as agent for the initial enrollment fee + $49 a month? Website? Sales Manual? Webinars? Leads? Business Cards? etc. etc. "
They are enrolled into the program, given a replicated website, Toll-Free Virtual Office, have the ability to attend online and conference call trainings, ability to attend product workshops and access to their upline. Basically an association fee - but it's optional. They can still work with us and not pay a fee - but, the perks of the "association" would certainly be worth more than $49 to the new agent.
" Are you talking about 75% commission on life products and/or 75% of a defined payment schedule entailing the different insurance products you market. "
The comp plan is a % based comp plan. The agent earns between 50% and 75% on whatever commissions they "personally" create - whether it's a MA or a 20 yr Term. Then - should the agent "qualify" - they can participate in Team Over-Ride Commissions and Profit Pool Bonuses. This is where someone utilizing "leverage" can create HUGE residual income from working with their team and helping their team members build their business.
" How do you handle chargebacks? "
As a reverse debit. The comp plan will reverse the commission just as it credits it. Each agent coming aboard will sign an agreement to guarantee any debit balances. Of course - collecting it if they should leave is another story - but, we have a few contacts to help us retrieve any monies owed.
Also - all agents contribute to a charge back escrow. 20% of all their earnings ( personal production and overrides ) are withheld until they reach a certain plateau which is based on their production. Should they leave the company - then their funds will be released after they have surpassed in time the charge back window of the business written.
Salpro said - " What specifically would I get as agent for the initial enrollment fee + $49 a month? Website? Sales Manual? Webinars? Leads? Business Cards? etc. etc. "
They are enrolled into the program, given a replicated website, Toll-Free Virtual Office, have the ability to attend online and conference call trainings, ability to attend product workshops and access to their upline. Basically an association fee - but it's optional. They can still work with us and not pay a fee - but, the perks of the "association" would certainly be worth more than $49 to the new agent.
" Are you talking about 75% commission on life products and/or 75% of a defined payment schedule entailing the different insurance products you market. "
The comp plan is a % based comp plan. The agent earns between 50% and 75% on whatever commissions they "personally" create - whether it's a MA or a 20 yr Term. Then - should the agent "qualify" - they can participate in Team Over-Ride Commissions and Profit Pool Bonuses. This is where someone utilizing "leverage" can create HUGE residual income from working with their team and helping their team members build their business.
" How do you handle chargebacks? "
As a reverse debit. The comp plan will reverse the commission just as it credits it. Each agent coming aboard will sign an agreement to guarantee any debit balances. Of course - collecting it if they should leave is another story - but, we have a few contacts to help us retrieve any monies owed.
Also - all agents contribute to a charge back escrow. 20% of all their earnings ( personal production and overrides ) are withheld until they reach a certain plateau which is based on their production. Should they leave the company - then their funds will be released after they have surpassed in time the charge back window of the business written.
" If I asked your trucker selling annuties 5 detailed questions about annuities he's get all 5 wrong - so would you. "
I've stated all along that I'm personally learning the biz from ground zero, so since I haven't begun my training on annuities - you have a point. Make the same statement a year from now and we just may have a challenge.
Now - I can't speak for my friend's knowledge on annuities - but he must be comfortable enough with it to sell it.
Tom
We we both could take a guess on the trucker's detailed knowledge of annuities and we'd both be right.
------------------------------------ Health Insurance Agents: Training, Support, Discounts, E&O for $440 www.ihiaa.com
I'm not sure if you were around when he started his shtick. But I was and I talked to a lot of people who bought into his scheme.
No doubt, there were many satisfied customers. But there were MANY MANY problems, not just in the product design, but in the way it was marketed.
I admire your ferocity, but of all people, to pick him to put on a pedestal. Well...you are doomed for failure unless you pick a new idol. How about Brett Favre?
On a sale - the total commission is paid to the company. The company then enters this amount into the producing reps business center. The software pays the rep their % ( whether it's 50,60 or 75% ) - then the software starts paying upline to any reps in the team that qualify to receive over-rides. Any remaining amounts are credited to the company's bottom line. Then - Profit Pool Bonuses are paid to qualifying reps. 60% of the profits are shared with all qualified reps.
When we receive a check from a company - we input the data and any business paid on by Thursday will be paid to the rep on their Visa / MC on Friday - plain and simple.
For the sake of charge backs - each rep has 20% of any check they earn withheld until they reach their plateau. This includes personal commissions, over-ride commissions and profit pool bonuses - any check. Once they reach a certain limit - then the 20% deduction will cease. But in reality - it will probably never cease if the rep is actively producing business.
What we are going to investigate is how we can put these funds into an interest bearing account for the rep. I have someone checking on the legalities concerning this matter.
It's not so much we're wanting to emulate Coach, but the distribution and training system ALW provided. Keeping it simple will provide for a shorter learning curve and the ability to rapidly expand. Success breeds Success.
Momentum will be the deciding factor. Should we be able to recruit motivated people to join us and be able to offer them affordable quality products to market - then momentum will carry us to the top. Should we be able to build brand awareness via hundreds if not thousands of trained agents - then half the battle will be won already.
Now - I'm basically on the outside looking in as I personally learn the biz - but, it seems the "trust factor" is a big hurdle. Our agents can use their "warm market", "referrals" and "pre-set appointments" to generate business in the beginning and use these sales to gain confidence. This will motivate them to push harder which will add to the company's momentum.
Will we be everything to everyone? Of course not. My personal goal is to create a steady residual income for my family, while being able to help others achieve the same. The idea is to create a company where average people will be able to do extraordinary things - and do it in less than 4 workdays per week . . . What is the sense in having lots of money if you don't have the time to enjoy spending it?
I agree with John and Frank.... Any decent agent is not going to pay any type of "go to work" fees. And it takes a lot of hand holding, and tlc up front to get any new agents to produce. And the ones that start producing on their own learn very quickly that they can do what you do and they're gone. Personally, I recruit just so often, and the mainstay of what I do is personal production. I learned that I make 3 times as much and without all the headaches. And in this day and age when you can do it over the phone, or over the net, you've got to do personal production or you'll be short lived in this industry.
Tom,
Are you kidding? You just "almost" bragged about ALW selling a high cost product and doing well with it, and then mentioning "coach Williams". Buddy, pick another idol. He hurt a lot of people in this industry and his methods were unsound.... profitable.... but unsound. That's why they're no longer around. And the MLM approach may have worked then..... in this day and age i doubt it. And your comment about "they are many people making money in MLM"..... my god...... just try to count the people in this country that lost every dime they ever put into ANY mlm company. The people that succeed aren't even a blip on the radar screen to the people who made $0. You'd be better off just trying to build a traditional agency with managers.
MLM isn't the problem - it's only a distribution network.
You need a marketable product.
You need production.
By the way - I haven't an idol - just an appreciation of what effort will do.
People can learn from history.
We're going to start small 20 to 30 agents over the next 60 days and get a feel for the whole deal. Recruiting isn't that hard part - we can attract 100's - training and supporting seems to be key. Easily duplicating the training and sales system will be the key.
Our target market is the part-timer, the stay at home moms/dads, semi-retired, etc. This market segment is hungry for extra income.
One plus to me having zero experience - is the fresh insight. Precisely why we need a few leaders that "paid their dues" that would be willing to "share" with their respective teams. Hopefully we'll find a few.
Tom,
Please understand something.... you're posting here with guys who have been in the insurance business for mega years, some 20 plus. You're posting with agency owners, state instructors and million dollar round table producers. Now you're coming off with these ideas of starting a mlm company targeting part timers like stay at home moms with a product that is marketable (insurance), and you're going to provide training and support and product knowledge.... when you yourself, have been an agent less than a month. Do you see my point. Who is going to train these part-time agents? You?? There are enough agents out there that are selling things that they don't even know what they're selling, and know only what their "manager" tells them. And yes, who looses in the end??? The consumer! Not once in all of your postings did you mention having a product that was "good for the consumer". Yet you praised ALW for having a high cost product but were still able to place business on the books with it. And you talk about appreciation of what effort will do..... there have been plenty of people throughout history that made plenty of "effort", made a lot of money, and screwed a lot of people. You'd do much better putting your "effort" into something less "sales" oriented, and try being a good insurance agent instead of a good salesman.
So lets say that I told you I wanted to team up with you and be a manager.
Here is what I see happening...
I would have a bunch of part time agents. I figure about 1/2 of them would be worthless in sales and effort. The other 1/2 I would have to babysit. I do not see very high production numbers. If I was merely compensated by overrides, then I would starve.
Also, if you are dealing with part time people, I am willing to say that most will give a part time effort. There is a reason that people fail in the insurance business, and that is most of the time lack of effort.
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"Government's view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it." Ronald Reagan
I’m having an issue with the communal charge back concept. These 20 – 100 agents are hungry and will not be amused with your explanation of a truck driver whom leaves the big rig for greener pastures.
Also, you’ll save yourself a lot of bucks down the road if you run your concept past an accountant and or legal team whom can assure you that your agent team is within the IRS definition of “independent contractor”.
" Please understand something.... you're posting here with guys who have been in the insurance business for mega years, some 20 plus. You're posting with agency owners, state instructors and million dollar round table producers. "
Many have been helpful. We want to do it the right way from the get go.
" Now you're coming off with these ideas of starting a mlm company targeting part timers like stay at home moms with a product that is marketable (insurance), and you're going to provide training and support and product knowledge.... when you yourself, have been an agent less than a month. Do you see my point. "
Yes - thus why I began posting here. I've made many connections and people believe it or not - they want to make sure we do well so that we represent the industry as we should. The support is going to come from the FMO's and Carriers. Product knowledge is something one can learn with training and teaching. We'll get trainers by the time we launch.
" Not once in all of your postings did you mention having a product that was "good for the consumer". Yet you praised ALW for having a high cost product but were still able to place business on the books with it. "
I didn't "praise ALW" - I said they were able to sell a higher priced product and get it to stick. They basically had a proprietary term product with Transamerica back in the day I believe. We will be selling the same thing everyone else is - just hopefully selling ourselves first.
Customer is job 1 - in this type business it has to be I imagine, referrals being what they are.
The product line will be trim and the learning curve shortened.
Example - I personally learned to sell MA's in 3 days. They key was recognizing what the client had, what they needed and what was available. We will limit the choices to the two best for a given area. Seems getting the appointment is a key factor in possibly closing the deal.
I do understand your concerns Mr. C - we're not out to make things worse for our clients - we want to offer peace of mind and predictability.
You'll be selling the same thing everyone else is???? Who is everyone else. You know there are a lot of Mega agents, United American Agents, Primerica Agents... all of who would probably be a good fit for what you're looking for. Those folks are definetley sales driven, and sure put themselves first. You seem to be a smart guy Tom, but a bit mis-guided.
MWB said - " I would have a bunch of part time agents. I figure about 1/2 of them would be worthless in sales and effort. The other 1/2 I would have to babysit. I do not see very high production numbers. "
Upline is different than manager - because you over-ride your entire team and participate in the profits of the company as a whole. However - 50% would be high. You would probably get effort from 20% to 25%.
" If I was merely compensated by overrides, then I would starve. "
At first. But - our upline will sell personally as well I would imagine. We will have good commission %'s for the experienced agent. Heck - they could book direct themselves elsewhere and just participate as an upline if they wish. There is a small amount of personal needed to earn over-rides.
" Also, if you are dealing with part time people, I am willing to say that most will give a part time effort. There is a reason that people fail in the insurance business, and that is most of the time lack of effort. "
In anything only about 20% to 25% of the team really excels or achieves - the rest just waddle along. We plan to give someone the opportunity to earn full time money with part-time effort. However - if they wish to earn more - they can sell more or they can personally sell part-time and also show others how to earn more - work less.
I had a guy today tell me to recruit telemarketers and teach them to sell major med online - what a great idea! They already are comfortable with the phone / net - it's a natural fit with the proper product knowledge.
Medsupppro said - " I’m having an issue with the communal charge back concept. These 20 – 100 agents are hungry and will not be amused with your explanation of a truck driver whom leaves the big rig for greener pastures. "
Charge backs are a fact of life are they not? Writing good business makes sense. The only way to do the charge back is up the line. The way we are going to do the chargeback is when they come in - take it from the next pay cycle, or in the case of departed agents - via collection efforts.
Today we decided to pay 25% fewer points on all business and if it stuck - the team would receive the points back as a bonus. Example - instead of an agent being at 80 points for Amerigo - then they would be at 60 points and they would receive a 20 point bonus at maturity. 50% held back on MA products - but, the charge back risks are different.
In addition - we will have a max advance of 6 months when possible.
Re: senior insurance leads company
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