"99.5% WILL FAIL.." - SAM

[NSRH]

For one, I think it is a failed system for the individual agent. When agents fail, they roll up debt.

Two, I want to work with entrepreneurs. I want them to have some skin in the game. When they're paying for the leads, they take ownership and they do better.

Three, we use direct mail. At 20 leads a week, I would have to front $2400 before I even see any sales. It could work, but the risk level would be insane.

This is where telesales has the edge. They can invest in cheaper lead sources, in bulk and not be bound by a small territory.

If an agent fails out with them, they can resell the lead to anybody contracted in that state.

I dont have those options. If somebody decides 4 weeks after I drop mail that they want to go work as a Walmart Greeter, I'm out $2400 without an easy way to offload those leads.

Now I've convinced myself to start a telesales agency haha! J/K

This is why most IMO's dont have a free lead platform. If done correctly, the overhead will become a behemoth of an expense.

In my opinion, its easier to transfer that risk to the agent and lower your margins. But the roll up debt is riskier with that model, than the captive model.

All in all, there is a market for both. Some agents will only work for high comp and some agents will only work for free leads. But in my experience, the agents with free leads will stick it out longer during tough times than an agent with high comp.

I would venture to say, when done correctly and recruited ethically, that agents in both scenarios can end up netting the same money.

 

[HoosierLife]

This is why most IMO's dont have a free lead platform. If done correctly, the overhead will become a behemoth of an expense.

In my opinion, its easier to transfer that risk to the agent and lower your margins. But the roll up debt is riskier with that model, than the captive model.

All in all, there is a market for both. Some agents will only work for high comp and some agents will only work for free leads. But in my experience, the agents with free leads will stick it out longer during tough times than an agent with high comp.

I would venture to say, when done correctly and recruited ethically, that agents in both scenarios can end up netting the same money.

See that's where I don't agree. Even at 100% vs 50% your agents on free leads are paying $1000s for their leads. The more they sell the worse off they become.

In our model, the more they sell the better off they become.

In your model, you make $$ no matter what.

In our model, we only make money if our agents succeed.

That's why the telesales market will always be super lucrative for the IMO, not so much for the agent.

 

[rousemark]

See that's where I don't agree. Even at 100% vs 50% your agents on free leads are paying $1000s for their leads. The more they sell the worse off they become.

In our model, the more they sell the better off they become.

In your model, you make $$ no matter what.

In our model, we only make money if our agents succeed.

That's why the telesales market will always be super lucrative for the IMO, not so much for the agent.

Are you taking into consideration the volume of leads required. Doesn't telesales require more leads to make a sale?

 

[NSRH]

See that's where I don't agree. Even at 100% vs 50% your agents on free leads are paying $1000s for their leads. The more they sell the worse off they become.

In our model, the more they sell the better off they become.

In your model, you make $$ no matter what.

In our model, we only make money if our agents succeed.

That's why the telesales market will always be super lucrative for the IMO, not so much for the agent.

On the free lead model, the IMO can lose big time if an agent doesnt sell enough. In the broker model, who really cares if they sell or not?

 

[Rirwin]

Are you taking into consideration the volume of leads required. Doesn't telesales require more leads to make a sale?

And the type of lead. There is a big difference between an $8 tm lead and a $40 tv lead.

 

[NSRH]

And the type of lead. There is a big difference between an $8 tm lead and a $40 tv lead.

That was my next point!

 

[HoosierLife]

On the free lead model, the IMO can lose big time if an agent doesnt sell enough. In the broker model, who really cares if they sell or not?

If you're agents aren't selling, you can just give their leads to somebody new.

Even with a lead deposit for Direct Mail, we lose our shirts on leads.

That's why you have so few groups that do like we do.

 

[DayTimer]

On the free lead model, the IMO can lose big time if an agent doesnt sell enough. In the broker model, who really cares if they sell or not?

The telesales IMO can have a stronger agent conduct unsold follow-up on the leads that the weaker agent broomed and probably sell a reasonable percentage of those previously unsold leads. The broker IMO, on the other hand, is on the hook for leads in a particular geographic area. For example, I am on a decent sized DM order. If I suddenly report my debit card stolen and change my cell phone number and take a job selling cars or real estate time shares or burgers my IMO will be on the hook for any DM leads that have come in for which I have not been charged. Unless the IMO can recruit another agent near enough to service my area, those leads will age and depreciate.

 

[chasejordan1]

This is a forum for professionals to have a conversation, if you don't like what I have to say - that sounds like a you problem.

And your little friend JD himself use to be a huge critic when someone else would come to another persons defense because "they couldn't defend themselves" and now he has his panties in a bunch and doesn't know what to do. Don't forget if the tables were turned fex would be having a field day!

I understand you are a fex minion...sorry this hits a soft spot for you!

Maybe it's because JD is a liar also I know for a fact that JD gets free leads for less commission he does it so he doesn't have to manage the leads but then he turns around and bashes another agent for doing the exact same thing but he's a unicorn 12 leads a week and sells more insurance premium than 90% the agents out there come on??

 

[Thedude]

See that's where I don't agree. Even at 100% vs 50% your agents on free leads are paying $1000s for their leads. The more they sell the worse off they become.

In our model, the more they sell the better off they become.

In your model, you make $$ no matter what.

In our model, we only make money if our agents succeed.

That's why the telesales market will always be super lucrative for the IMO, not so much for the agent.

Wait what..... You have virtually zero risk with expenses.............. In your model you lose a guy so what.. He gets vectored and worst case scnario you pay roll ups.

Are you the one paying for the lead drops for all your agents or is that EFES