Captive -vs- Independent Captive?

[myinsurebiz]

I understand what you're saying, but leads are NEVER free. Allow me to explain. There is a guy that leaves a recruiting message on my voicemail no fewer than once every quarter stating how he's been given $150,000 marketing budget to put towards the success of new agents. He goes on to state that the budget will be applied to provide the new agent free leads. I mistakenly answered the phone once before when he called. Since he caught hold of me, I figured I'd entertain him. I asked him at what commission level would a new agent start. He either said 50% or 70%, I forget which exactly. I said to him, "Well, the leads aren't free after all, are they?" He had no clue what I was talking about.

No way can an IMO give an Agent 30 to 50 fresh Direct Mail Leads every week and not pay out to a 50% - 65% contract.

Example:

30 Leads a week @ say $30 each = $900 value.

Close one in six = 5 Sales.

Average sale = $50 month premium - $600AP

$3000 in AP. PPL ( Premium Per Lead ) = $100

Broker @ 110% contract would earn $3300 first year comp. Minus $900 Leads = $2400 Gross. ( I realize contacts can be 100% -125%, etc - used 110% as an average for a new Agent ) . . .

Career Agent @ 60% contract would earn $1800 Gross. No out of pocket lead cost, no E&O fees, access to Area Office, Free Postage, Free Supplies, Training, Support, Incentives, etc.

As I can personally attest - 100% of $0 is still $0 . . .

You still have to #SeeThePeople

 

[myinsurebiz]

No way can an IMO give an Agent 30 to 50 fresh Direct Mail Leads every week and not pay out to a 50% - 65% contract.

Example:

30 Leads a week @ say $30 each = $900 value.

Close one in six = 5 Sales.

Average sale = $50 month premium - $600AP

$3000 in AP. PPL ( Premium Per Lead ) = $100

Broker @ 110% contract would earn $3300 first year comp. Minus $900 Leads = $2400 Gross. ( I realize contacts can be 100% -125%, etc - used 110% as an average for a new Agent ) . . .

Career Agent @ 60% contract would earn $1800 Gross. No out of pocket lead cost, no E&O fees, access to Area Office, Free Postage, Free Supplies, Training, Support, Incentives, etc.

As I can personally attest - 100% of $0 is still $0 . . .

You still have to #SeeThePeople

In addition:

Career Agents also receive the same standardized commissions on Medicare Advantage and Part D that most every IMO pays:

MAPD = $482 and $241
CT, PA, DC = $542 and $256
CA & NJ = $601 - $301
Part D = $74 / $36 everywhere . . .

They also receive street on Med Supp, HIP, DVH, Annuities, etc . . .

Cool thing is they can use their "free" FE Leads to cross sell all the above without additional lead cost.

 

[Todd King]

In addition:

Career Agents also receive the same standardized commissions on Medicare Advantage and Part D that most every IMO pays:

MAPD = $482 and $241
CT, PA, DC = $542 and $256
CA & NJ = $601 - $301
Part D = $74 / $36 everywhere . . .

They also receive street on Med Supp, HIP, DVH, Annuities, etc . . .

Cool thing is they can use their "free" FE Leads to cross sell all the above without additional lead cost.

Yeah, those FE clients are just dyng to buy some annuities and DVH. And the Med Supps...well, that goes without question! NOT!!!