As Earned or Advanced Commissions...Best Of Both Worlds?

[FinalExpenseDojo.com]

Thumbs down... too complicated for me.

If you want to avoid chargebacks, here's what you do.

1. Too many independent agents like to taste the rainbow & use 20 different carriers from day 1. Bad decision. Choose 1 company as a "go to" and maybe 1-2 others for when they don't qualify for the "go to".

This way if you get a chargeback, you have so many policies on the books that it'll come out of your future commissions.

2. NEVER sell a policy "on a cancel". Meaning, if someone is on the fence, NEVER use the line "hey let's just apply and you can always cancel at any time". (They will cancel 99% of the time, mostly after you've been advanced).

3. Don't start unless you're going to finish. As long as you keep writing business & never quit, you will get better with time & end up alright.

 

[myinsurebiz]

1. Too many independent agents like to taste the rainbow & use 20 different carriers from day 1. Bad decision. Choose 1 company as a "go to" and maybe 1-2 others for when they don't qualify for the "go to".

Who are your 2 or 3?

Who is your "go-to"?

 

[Chazm]

I would never use a “you can cancel” pitch but I have said, “let’s see if you can even get approved first”

 

[Newby]

Thumbs down... too complicated for me.

If you want to avoid chargebacks, here's what you do.

1. Too many independent agents like to taste the rainbow & use 20 different carriers from day 1. Bad decision. Choose 1 company as a "go to" and maybe 1-2 others for when they don't qualify for the "go to".

This way if you get a chargeback, you have so many policies on the books that it'll come out of your future commissions.

2. NEVER sell a policy "on a cancel". Meaning, if someone is on the fence, NEVER use the line "hey let's just apply and you can always cancel at any time". (They will cancel 99% of the time, mostly after you've been advanced).

3. Don't start unless you're going to finish. As long as you keep writing business & never quit, you will get better with time & end up alright.

My data on your #2 is way different. I have used versions of that hundreds of times over the past couple of decades and I don't think a single one of those ever canceled. I think a lot of it just depends on the agent's personality of how much success they have with different things like that. I was never a hard closer. My persistancy was always real high. But I probably didn't close some cases that a real aggressive agent might get.

But the 30 day free look close is great for closing people that want to buy but just think they need to think about it first. By the time you get them approved, get their check, and wrap them up they are as solid as a rock. They don't go though with it unless they wanted it to start with. I could see that if an agent is more of an arm twister with it, there could be way different results.

 

[AboutThatLife]

My data on your #2 is way different. I have used versions of that hundreds of times over the past couple of decades and I don't think a single one of those ever canceled. I think a lot of it just depends on the agent's personality of how much success they have with different things like that. I was never a hard closer. My persistancy was always real high. But I probably didn't close some cases that a real aggressive agent might get.

But the 30 day free look close is great for closing people that want to buy but just think they need to think about it first. By the time you get them approved, get their check, and wrap them up they are as solid as a rock. They don't go though with it unless they wanted it to start with. I could see that if an agent is more of an arm twister with it, there could be way different results.

Seconded. I always use it and it doesnt always work but the people who it works on don't cancel. My lapses all come from the "eager" clients.

 

[goillini52]

My data on your #2 is way different. I have used versions of that hundreds of times over the past couple of decades and I don't think a single one of those ever canceled. I think a lot of it just depends on the agent's personality of how much success they have with different things like that. I was never a hard closer. My persistancy was always real high. But I probably didn't close some cases that a real aggressive agent might get.

But the 30 day free look close is great for closing people that want to buy but just think they need to think about it first. By the time you get them approved, get their check, and wrap them up they are as solid as a rock. They don't go though with it unless they wanted it to start with. I could see that if an agent is more of an arm twister with it, there could be way different results.

I don't use that close often, but sometimes it gives the prospect just enough reassurance to make the jump. If I don't feel it'll stick...I don't use it. I do it a couple times a year and I don't remember anyone cancelling during the "free look" provision.

 

[Newby]

I don't use that close often, but sometimes it gives the prospect just enough reassurance to make the jump. If I don't feel it'll stick...I don't use it. I do it a couple times a year and I don't remember anyone cancelling during the "free look" provision.

Exactly. Agents that are afraid of using it when needed must be trying to clamp down hard on people that are just not interested or they are listening to other agents that are afraid to use it.

Back when I first got in the biz, we had to give them a separate page called a 3-day free cancelation period. They had to sign it and we took a copy and they got a copy. It explained in BOLD print and plain English they they could absolutely cancel with no obligation for 3-days. Scared agents to death. To me it was a fantastic tool to build confidence into your sales presentation.

If anyone even mentioned the form when they were signing it like: So this say's I have three days to cancel if I want to? I would say, Mrs. Smith I just have to have you sign this 3-day because it's a state law. But I give all my clients a full 30-days. If you decide this is not right for you any time in the next 30 days, just call me and we will cancel this and refund your premium.

My cancelation rate has always been almost non-existant. But back in those days I actually collected the first check on all of them.

It comes down to the agent's attitude on stuff. If you think something helps you, it will help you. If you think something will hurt you it will hurt you. You are right either way.