3 things I wish I knew starting out as a new agent

[AZtinman]

Baseball,

What isn't true?

1. IMOs are not obligated to give you a release unless it's agreed upon before you contract with them.

2. You said, "there are plenty of companies to survive a 6-month transition". I assume you mean you can contract with other companies during the six months while you're waiting for the original companies you wrote for to release. Yes, that's true. But you can not write for the same companies you were writing for with the initial IMO because they won't release you without the IMOs permission.

3. What percentage of new agents would survive that situation if it stared them in the face? Very few I think.

4. If you've "been there , done it" you're an exception by surviving the six months. Wouldn't you advise new agents to make sure it never happens to them by insisting on a release at any time, in writing, before they contracted with an IMO in the first place?

tinman

 

[Baseball7]

1. IMOs are not obligated to give you a release unless it's agreed upon before you contract with them.


True, but your not just going to be released, another IMO has to sign for you and your debt.

2. You said, "there are plenty of companies to survive a 6-month transition". I assume you mean you can contract with other companies during the six months while you're waiting for the original companies you wrote for to release. Yes, that's true. But you can not write for the same companies you were writing for with the initial IMO because they won't release you without the IMOs permission.

You said you can’t work for 6 months, that’s false. The twenty some companies that sell FE the first ten are generelly interchangeable with the second ten. You need a IMO that has options to surivive six months but it can be done.

For example FFL seemed like a viable option but there carrier lineup favors americo, and basically nobody else.

3. What percentage of new agents would survive that situation if it stared them in the face? Very few I think.


with proper support and work ethic, anyone.

4. If you've "been there , done it" you're an exception by surviving the six months. Wouldn't you advise new agents to make sure it never happens to them by insisting on a release at any time, in writing, before they contracted with an IMO in the first place?

I’ll release but if you came to me wanting to work with me but already asking for a relese I’d question your motivation.

So many indy FE agents lack focus, direction, and loyalty and that’s why there broke.

 

[KRobby]

If you do NOT have a release from your IMO, and they are NOT obligated to give you one, you can NOT go with another IMO for six months.

Who told you that?

 

[WinoBlues]

Releases - question = what forces an IMO to release you? Who enforces it?

What stops an IMO from just being a dick and dragging his feet on a release. Other than the forum on the few here.

Protect your family, no one else will

 

[AZtinman]

Baseball,
You said "with proper support". Exactly. And that would have to come from the second IMO you want join.

"I’ll release but if you came to me wanting to work with me but already asking for a relese I’d question your motivation."

That's strange. All the honest, ethical IMOs on this forum recommends new agents get a written agreement of release BEFORE they contract with anyone. Key words "honest" and "ethical".

You said, "So many indy FE agents lack focus, direction, and loyalty and that’s why there broke."

BS. Most of the failed agents fail because they can't afford to buy leads. Especially, DM leads. Or they fail from lack of training which is the IMO's responsibility. Or they fail because their IMO did not tell them everything they need to know before they sign a contract. Like releases.

To say they fail from lack of focus, direction and loyalty is placing the blame of failure on the agents instead of on the IMO.

Loyalty is like respect. It has to be earned not demanded.

tinman

 

[Baseball7]

A reciprocal release is something that I’d advise we offer during a conversation, but to ask to contract with me and leading with that just comes off odd to me.

What else does an IMO need to tell you, that with out knowing would damage your chances?

I think most agents fail cause of them, and they wana blame someone besides themselves.

Most IMO’s can set you up on a good DM lead program, plenty off decent training and good companies to sell. I believe most agents don’t fail from a lack of finance but a lack of effort.

 

[Baseball7]

How bad do you want to succeed? Yes, there are ways to optimize “success” but if tomorrow I had to work on an 80% contract captive to feed my family I’d have to work hard but I have no doubt I’d do what was necessary.

 

[Alston]

Learn from old agents (Check)
Go as earned (Done in 10th year, BEST move i have ever made!!)
Do not place all your eggs in one basket

I agree with the first and last. I think the middle one is important for some and de-motivating for others.

You may be forced to make bad long term decisions at times, especially when you start in business.

However, as soon as you can, start thinking about maximizing the lifetime value of a client.

This may mean that you:

• Sell different products
• Sell to different people
• Service the %#$ out of them so you get more renewals and referrals.

And don't be afraid to reinvest money into your business. Sometimes free is very expensive.

In the long run you may be able to live well off of referrals and renewals (unless you want constant growth), but you'll probably need to pay for your first several hundred clients.

1. Think like a business owner regardless of your contract or tax status
2. Think long term
   • Stay in touch with your clients
3. Learn how to market, not just sell.

 

[AZtinman]

Baseball,

Let's talk about a "good" DM program. Let's say $300 for a 1000 piece mailing. Let's say a 2% return which is high. Most likely it's around 1.5%. But we'll go with 2. That means the new agent will get 20 leads back. After waiting 4 or 5 weeks.

Then he has to call the leads to set up the appointment. Here's a quote from THIS forum, "If I had an appointment setter set 6-7 appointments off of 20 of leads I would be VERY happy."

So out of 20 leads the new agent gets 6 appointments. Not 7. The new agent is not an appointment setter. If he was he'd be selling appointments.. He may only get 5 but we'll go with 6. One will be a noshow. Now we're at 5. If the new agent closes at 20% he gets ONE sale. AFTER 4-5 weeks.

Average MP is 45 dollars. 45 x 12 x 1 x .75 is 405 dollars. That's assuming 100% contract, the 1 in the formula and a 9 months advance, the .75 in the formula. Most likely it's closer to .8 because the IMO didn't tell the new agent he could have a 100% contract. If the new agent is only at 80% the one sale earns him 312 dollars. AFTER 4-5 weeks.

Minus the 300 dollars for the DM "program". Minus 20 dollars or more for gas for running 6 appointments. With a 100% contract the agent made 85 dollars AFTER 4-5- Weeks.
With a 80% contract the agent is 8 dollars in the hole.

And you tell me "So many indy FE agents lack focus, direction, and loyalty and that’s why there broke." ?

Lack focus? The new agent has focus. He focuses on the 85 dollars he made in 5 weeks. Or the MINUS 8 he made in 5 weeks. He is focusing on confronting his wife with the fact he made 85 dollars, or -8 dollars, in 5 weeks and the rent is due.

Lacks direction? You mean the direction you gave him when you recommended to him to buy DM leads?

Lacks loyalty? Why are you demanding loyalty when the failure of the new agent is the fault of the IMO? I repeat....loyalty is like respect; it has to be earned.

Why do I have a hunch the new agents "decent training" from you is telling him to sell this friends and family members until his 6 leads come in from 300 dollar direct mailing program?

Give me a break.

And put the blame where it belongs.

tinman

 

[rousemark]

Baseball,

Let's talk about a "good" DM program. Let's say $300 for a 1000 piece mailing. Let's say a 2% return which is high. Most likely it's around 1.5%. But we'll go with 2. That means the new agent will get 20 leads back. After waiting 4 or 5 weeks.

Then he has to call the leads to set up the appointment. Here's a quote from THIS forum, "If I had an appointment setter set 6-7 appointments off of 20 of leads I would be VERY happy."

So out of 20 leads the new agent gets 6 appointments. Not 7. The new agent is not an appointment setter. If he was he'd be selling appointments.. He may only get 5 but we'll go with 6. One will be a noshow. Now we're at 5. If the new agent closes at 20% he gets ONE sale. AFTER 4-5 weeks.

Average MP is 45 dollars. 45 x 12 x 1 x .75 is 405 dollars. That's assuming 100% contract, the 1 in the formula and a 9 months advance, the .75 in the formula. Most likely it's closer to .8 because the IMO didn't tell the new agent he could have a 100% contract. If the new agent is only at 80% the one sale earns him 312 dollars. AFTER 4-5 weeks.

Minus the 300 dollars for the DM "program". Minus 20 dollars or more for gas for running 6 appointments. With a 100% contract the agent made 85 dollars AFTER 4-5- Weeks.
With a 80% contract the agent is 8 dollars in the hole.

And you tell me "So many indy FE agents lack focus, direction, and loyalty and that’s why there broke." ?

Lack focus? The new agent has focus. He focuses on the 85 dollars he made in 5 weeks. Or the MINUS 8 he made in 5 weeks. He is focusing on confronting his wife with the fact he made 85 dollars, or -8 dollars, in 5 weeks and the rent is due.

Lacks direction? You mean the direction you gave him when you recommended to him to buy DM leads?

Lacks loyalty? Why are you demanding loyalty when the failure of the new agent is the fault of the IMO? I repeat....loyalty is like respect; it has to be earned.

Why do I have a hunch the new agents "decent training" from you is telling him to sell this friends and family members until his 6 leads come in from 300 dollar direct mailing program?

Give me a break.

And put the blame where it belongs.

tinman

Blame belongs on the agent... What was he doing during the 4 or 5 weeks waiting on the lead return.. Sitting at home watching reruns of "As the World Turns"? And, then he only works 5 appointments in a week? What was he doing with the rest of his time?..