Beware of Close Hugh Cases Over the Phone

[BURIAL INSURANCE MAN]

I have bought their leads and been to one of their producer
conferences. If it sounds to good to be true it is! They are
selling IULwith Minnesota Life as their man product with
some annuities thrown in. When I was at the conference
last fall very few were successfully selling anything. Almost
all were new producers hoping to get on this great
system. some people have made some really big sales
but that is a very small number and that is who they promote.
Of all the appointments I ever got from them 60% were no
shows and of the remaining appointments half were
broke or nuts who wanted to buy gold and silver. They
advertise on talk radio and get call ins for the book
"Safe Money Millionaire". My advice STAY AWAY!
Remember whenever someone is promoting something
Dan Kennedy is promoting DK got BIG BUCKS to get
some to pay BIG BUCKS to be a part of this wonderful
program being promoted. These guys have an inside
telephone sales operation which is where I suspect
most of theirsales come from. This program is the
Elite Leads program which has been discussed on
the forum in other threads. Let the buyer beware!

 

[John Galt]

I have bought their leads and been to one of their producer
conferences. If it sounds to good to be true it is! They are
selling IULwith Minnesota Life as their man product with
some annuities thrown in. When I was at the conference
last fall very few were successfully selling anything. Almost
all were new producers hoping to get on this great
system. some people have made some really big sales
but that is a very small number and that is who they promote.
Of all the appointments I ever got from them 60% were no
shows and of the remaining appointments half were
broke or nuts who wanted to buy gold and silver. They
advertise on talk radio and get call ins for the book
"Safe Money Millionaire". My advice STAY AWAY!
Remember whenever someone is promoting something
Dan Kennedy is promoting DK got BIG BUCKS to get
some to pay BIG BUCKS to be a part of this wonderful
program being promoted. These guys have an inside
telephone sales operation which is where I suspect
most of theirsales come from. This program is the
Elite Leads program which has been discussed on
the forum in other threads. Let the buyer beware!

Thanks for this info, you just did us all a huge service.

 

[scagnt83]

I have bought their leads and been to one of their producer
conferences. If it sounds to good to be true it is! They are
selling IULwith Minnesota Life as their man product with
some annuities thrown in. When I was at the conference
last fall very few were successfully selling anything. Almost
all were new producers hoping to get on this great
system. some people have made some really big sales
but that is a very small number and that is who they promote.
Of all the appointments I ever got from them 60% were no
shows and of the remaining appointments half were
broke or nuts who wanted to buy gold and silver. They
advertise on talk radio and get call ins for the book
"Safe Money Millionaire". My advice STAY AWAY!
Remember whenever someone is promoting something
Dan Kennedy is promoting DK got BIG BUCKS to get
some to pay BIG BUCKS to be a part of this wonderful
program being promoted. These guys have an inside
telephone sales operation which is where I suspect
most of theirsales come from. This program is the
Elite Leads program which has been discussed on
the forum in other threads. Let the buyer beware!

I hate being right on this one... but I knew it.

The book glosses over so many facts and suitability issues it is scary. Its all pie in the sky best thing since sliced bread crap.

IUL is a very small niche when it comes to suitability. Mass marketing for IUL is guaranteed to bring in mostly unsuitable prospects.

Then there is the issue that a green agent is the LAST person who should be selling IUL, which is the 2nd most complicated life product on the market. And making pie in the sky promises such as that lead system does (just look at the forum ad in the IUL section) just begs to have a bunch of green agents jump on the band wagon.

I'm glad that someone posted a review. I can't stress enough to stay the hell away from this book peddler.

 

[Cash]

They are based in Utah..... what do you expect?

The quote from Dan Kennedy in the ad was right. This is the "holy grail." The problem is that no one is going to give away the holy grail once discovered: it just doesn't make sense to. If they are giving it away, you can be sure they don't have it.

----------

IUL is a very small niche when it comes to suitability. Mass marketing for IUL is guaranteed to bring in mostly unsuitable prospects.

Why do you think it is a small niche? People that need life insurance and want to save for retirement is a prety large market. Interested to hear your response.

 

[scagnt83]

They are based in Utah..... what do you expect?

The quote from Dan Kennedy in the ad was right. This is the "holy grail." The problem is that no one is going to give away the holy grail once discovered: it just doesn't make sense to. If they are giving it away, you can be sure they don't have it.

----------

What is your deal with Utah?

They arent giving the leads away. They are selling them for $100 a piece. They also claim that the average COMP is $10k (that would mean an average premium of $20k or more if the policy was designed correctly).

So taking that $10k average commission, and assuming just a 20% closing ratio on the leads, lets look at the numbers:

200 leads= $2k in revenue for the lead vendor

200 leads @ 20% close ratio is 40 sales.

40 sales x $10k in comp is $400,000 in commissions....

Lets assume just a 10% close ratio... that would be $200,000 in commissions...

Lets assume just a 5% close ratio (that would be a real sh*tty close ratio)... that would be $100k in commissions.


So we are to believe that this guy would rather make $2,000 instead of making $100,000 - $400,000.

Unless he is Mother Theresa I call a big stinking pile of BS!

----------

Why do you think it is a small niche? People that need life insurance and want to save for retirement is a pretty large market. Interested to hear your response.

It is a small niche imo because I am a believer that people should first contribute to their 401k or IRA. Or at least some proven track record of saving in some type of investment over multiple years.

IMO you should have some type of retirement savings started before starting an IUL. If you have a match on a 401k you absolutely without a doubt should max out your match before ever considering an IUL.

But either way I am a firm believer that an IUL should not be the initial savings vehicle for retirement. One reason for that is just to have a history of commitment to saving for retirement. An IUL is a long term commitment, actually, the longest term commitment that you could make (lifetime). It is not a product with just a 5 or 10 year investment time frame.

Then you get into the whole issue of how many people are actually contributing any decent amount in their 401k or IRA in the first place... the average deferral rate for 401k participants is around 5% of salary (depending on which statistic you are looking at). That means around $3k per year for the average white collar employee. So why not contribute the limit for a 401k which is $17k?? Why not is because they cant afford to due to many other expenses.


The guys who are actually selling IULs for savings purposes on a consistent basis are not selling them to people making $60k per year. They are selling them to people making $200k-$500k per year. And those types of people are a small niche of the overall market.

Can an IUL be a suitable fit for someone in a lower income bracket? Sure. But not on a consistent basis by any means.

I love IUL as a product. But I feel that it is being mis-sold greatly at the present moment. It is the 80s UL fiasco all over again. Only this time it is not the big carriers pushing the unsuitable sales. It is all of these IMOs out there marketing it as the best thing since sliced bread. Look at all of the green agents asking questions about how to sell it because they have a prospect... and they dont have the first clue about even which company to use... much less how to design the product correctly. Hell, even experienced agents do not know unless they take the time and effort to learn. There are some IMOs out there actually teaching agents how to properly design the policy. But way too many are not overfunding them all the way or even at all. Mark my words there will be lawsuits over imploding and unsuitable sales of IULs in the coming years.

If an agent cant explain how to tell if a policy is fully overfunded, what the difference in GPT & CVAT is, and what the potential tax pitfalls are, then they have no business selling an IUL.

JMO

 

[Thad.Sipple]

What is your deal with Utah? They arent giving the leads away. They are selling them for $100 a piece. They also claim that the average COMP is $10k (that would mean an average premium of $20k or more if the policy was designed correctly). So taking that $10k average commission, and assuming just a 20% closing ratio on the leads, lets look at the numbers: 200 leads= $2k in revenue for the lead vendor 200 leads @ 20% close ratio is 40 sales. 40 sales x $10k in comp is $400,000 in commissions.... Lets assume just a 10% close ratio... that would be $200,000 in commissions... Lets assume just a 5% close ratio (that would be a real sh*tty close ratio)... that would be $100k in commissions. So we are to believe that this guy would rather make $2,000 instead of making $100,000 - $400,000. Unless he is Mother Theresa I call a big stinking pile of BS! ---------- It is a small niche imo because I am a believer that people should first contribute to their 401k or IRA. Or at least some proven track record of saving in some type of investment over multiple years. IMO you should have some type of retirement savings started before starting an IUL. If you have a match on a 401k you absolutely without a doubt should max out your match before ever considering an IUL. But either way I am a firm believer that an IUL should not be the initial savings vehicle for retirement. One reason for that is just to have a history of commitment to saving for retirement. An IUL is a long term commitment, actually, the longest term commitment that you could make (lifetime). It is not a product with just a 5 or 10 year investment time frame. Then you get into the whole issue of how many people are actually contributing any decent amount in their 401k or IRA in the first place... the average deferral rate for 401k participants is around 5% of salary (depending on which statistic you are looking at). That means around $3k per year for the average white collar employee. So why not the limit for a 401k which is $17k?? Why not is because they cant due to many other expenses. The guys who are actually selling IULs for savings purposes on a consistent basis are not selling them to people making $60k per year. They are selling them to people making $200k-$500k per year. And those types of people are a small niche of the overall market. Can an IUL be a suitable fit for someone in a lower income bracket? Sure. But not on a consistent basis by any means. I love IUL as a product. But I feel that it is being mis-sold greatly at the present moment. It is the 80s UL fiasco all over again. Only this time it is not the big carriers pushing the unsuitable sales. It is all of these IMOs out there marketing it as the best thing since sliced bread. Look at all of the green agents asking questions about how to sell it because they have a prospect... and they dont have the first clue about even which company to use... much less how to design the product correctly. Hell, even experienced agents do not know unless they take the time and effort to learn. There are some IMOs out there actually teaching agents how to properly design the policy. But way too many are not overfunding them all the way or even at all. Mark my words there will be lawsuits over imploding and unsuitable sales of IULs in the coming years. If an agent cant explain how to tell if a policy is fully overfunded, what the difference in GPT & CVAT is, and what the potential tax pitfalls are, then they have no business selling an IUL. JMO

Your missing the point he has sooooo many leads he can't close them all.

 

[John Galt]

Your missing the point he has sooooo many leads he can't close them all.

Yea and we both know just how super easy it is to generate all those leads

Takes lots of work. If he has that many wouldn't it be better for them to hire inhouse agents to work the leads?

 

[Thad.Sipple]

Yea and we both know just how super easy it is to generate all those leads Takes lots of work. If he has that many wouldn't it be better for them to hire inhouse agents to work the leads?

Yup..... Oh wait I see what your doing here.

 

[John Galt]

Yup..... Oh wait I see what your doing here.

Oh crap no no no dude, I didn't mean it that way lol, I just thought about it when you posted this, I swear to god that's not what I meant.

 

[Thad.Sipple]

Oh crap no no no dude, I didn't mean it that way lol, I just thought about it when you posted this, I swear to god that's not what I meant.

Hahahahahahahahahahaha