Beginner's Guide to Insurance MLM

Discussion in 'Getting Started Selling Insurance' started by wfs, Apr 22, 2009.

  1. bassplayer
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    bassplayer Expert

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    I'm a newly licensed agent starting with American General and I was a bit concerned to see them on this list. What am I missing? Are they MLM, and how so?
     
  2. arnguy
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    arnguy Guru

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    Re: Beginner's Guide to Insurance

    Yes, they do.:)
     
  3. Idaho Spud
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    Idaho Spud New Member

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    For any new agents, Avoid Aflac!!!! As a 22 year vet, still licenced, todays question for a new agent considering Aflac should also be, does as the old Russian saying suggest, a fish rot from the head down. Keep in mind, that just two years ago Aflac designated July as "Senior Agent Month." What qualifications were required, (two, 2, too,) years of service with Aflac made one a Senior agent. After spending the last 20 years avoiding the derilects that Aflac fields as district, regional, and state managers it is evident that this is the bottom of the barrel entry level insurance opportunity.

    There will be those cultists that disagree but be assured even Jim Jones found a few hundred who were willing to drink poison kool aid so that's to be expected.

    Aflac runs adds in Idaho papers promoting $75,000 incomes and I presume this is standard fare across the country. New agents contract, get 3 days of training and are set loose on the public. By the time they realize the district, state or regional managers are unavailable to assist them in their "career" starvation has set in and by the third month of being an Aflac agent their body fat will no longer support them, and the glow of success for following a cartoon duck has caused the feathers to fall from their eyes. Not to worry. The accounts they open, brother Billy Bub, sister Sally Lou and Uncle Kens tire store with five employees remain on the Aflac books, giving the next person the opportunity to "service" this fantastic book of business. Little does the newby realize that the regional, and then district manager took a shot first just to see if there are any crumbs to pick up before assigning to a new agent. Seriously, Aflac has 3 1/2 fair plans that can provide value to the buying public. Assuming that public has an agent that survives in the business to help them with any future claims. On the other hand, go to the Aflac website, begin an online claims form, jump throught 50 hoops of passwords and registrations and by the time you get done you have either given up or are informed to submit paperwork that you would have in the first place if they had allowed you to download a form. But, I digress, the newby agent is encouraged to "buy" or "lease" an Aflac computer. This neat unit is about $3500, but Aflac will give an agent a $3 credit for each policy sold. Since Aflac only has 3 policies that have any actual merit that means the new agent, already starving and now paying for his computer, is eager to sell anything a consumer is stupid enough to buy, including toenail or ingrown hair insurance, just so they can pay for the computer. Oh, by the way, at the end of the three year lease, the computer is designated as obsolete and a new purchase will be in order for an additional 3 years.
     
  4. AttillaTheOne
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    AttillaTheOne Super Genius

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    All I can say Spud is AMEN!
    I have never seen a more dubious crew of "Managers" in ANY industry than I saw in NW Florida.
    Fog a mirror, quack like a duck, YOU BE A MANAGER!
    Stay away, work for a real insurance company with ADULT SUPERVISION.
     
  5. Idaho Spud
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    Idaho Spud New Member

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    Attilla: I could write a book on these fools. Having avoided the Idaho Aflac organization for 20 plus years they have finally caught up with me. Seems that I controlled all the large groups in my area. All except one I opened. Through service and total honesty ( for example, the new wellness benefit rider for a cancer policy that pays $75 for an exam costs, you guessed it, $75 annually. I show people this and they don't buy it when it's in black and white. The average agent doesn't have a clue and the ones that do know could care less if people are willing to buy). If I did write a book it would be worse then describing the characters in the Obama administration.

    BOTTOM LINE: AFLAC AGENTS ARE TO INSURANCE AS PAYDAY LOAN OFFICES ARE TO BANKING!
     
  6. Mike Shaw
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    Mike Shaw New Member

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    Something tells me Five Rings is in this category.

    Sounds like HBW... You CAN build a team, but you don't hafta.

    May wanna add that to the original list once someone looks at em.

    Me? I'm just pissed off enough at Mass Mutual and NWM Life to say eff em and build something to beat the smug bastages. No, I DON'T have 300 names and #s to bring to you to get in the door.

    Grrrr

    Can ya tell I'm a little frustrated. Happened the last time I did this too. Why I thought it'd be different this time is beyond me.

    M
     
  7. baggins415
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    baggins415 Expert

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    I visited 2 AFLAC offices back in the day. Both offices claimed to be the 'biggest' this or the biggest that. What struck me about these offices were how sad and budget they were. Broken desks and furniture. Small cramped workspaces. Manager's office looked like a closet. I thought, 'how can anyone possibly be making any money here?' Even the bosses seemed broke.
    Needless to say I left to never return.
     
  8. Norwayguy
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    Norwayguy Guru

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    I hear you on the offices...I was contacted by an Aflac office about doing some joint work, I doing retirement plans and they the voluntary plans in a couple of businesses I had plans with...So I swung by their office in Portland. I was surprised at the state of the building and when I saw the office, granted it wasn't a place you take clients and neither is my office but it was very run down, after discussing with them how they saw things working it was all one sided.
     
  9. stricknaa
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    stricknaa Guest

    I'm curious when it comes to the terms that you've used here. I'm honestly asking this and would like an answer to also help anyone else here.

    You say these are MLM IMO's correct? Their main focus is on recruiting as many people as you possibly can and this I can testify to. You start at a lower commission rate (usually half of what you could get if you had no dealings with them) and they generally keep your residual commissions.

    My Statefarm agent tried to recruit me. I asked what her commission would be on a $106/mo premium and from what I gathered she is sub-contracted to the Statefarm agent and she wouldn't disclose her commission % on anything. Basically it was up to her agent to determine her rate. To me- and correct me if I'm wrong- this is a micro MLM scheme yet a well-known carrier and agency.

    So, here's the question: what can a new agent- one who needs training, support and the confidence it takes to sell in this industry- expect to earn vs. these companies listed in this thread?

    If they're brand spanking new, would it be horribly bad for them to join a producer or agency that has the experience and offers what's needed and earn a commission of 70% or 80% WITH the possibility of 110% AND receiving every $$$ of their residual.

    (BTW I don't endorse or support ANY these despite the ID)
     
  10. dizzy
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    dizzy Expert

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    My friend wants to be a "Free" of constaints .He asked me about going independent, told him that might work for him. I just did not know where to send him to for good commision splits with large brokers that have many companies. He is working on being Lic right now but has worked in the indursty for 5 years.
     

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