Charge Back Hell

[jody108]

In July of 2009, I experienced Charge Back Hell...

It was a shock to me but an experience that I've learned to avoid.

You need to focus on an income bracket higher than 0k-15k ... you should focus on the income bracket, 15k - 50k.

I also learned how important it is to stay in touch with your clients and to help them stay on top of their payments (most clients want to keep their insurance).

It's best to be aware of this risk and do everything to avoid it.

 

[EFLTEACHER]

EFT bank overdrafts are bankrupting me ... anyone have advice?

I think it's my market ... they are just too poor ...

Is FE really as good as it appears? I'd rather sell less policies to people that can pay ... how do you find these people?

Are you saying that if there is a chargeback from a policy, that the insurance company is going right into your checking account for the money?

 

[dgoldenz]

Don't take advances....

 

[jody108]

Are you saying that if there is a chargeback from a policy, that the insurance company is going right into your checking account for the money?

no, no ...

 

[jamesflou]

I take full advances but I put the money in a separate account and then pay myself a percentage just in case I have a charge back. Once you build up your side account what you pay yourself will get bigger. I use this concept from my start as a captive agent. As far as the quality of the business staying on the books it's hard to say. I have low income people who I have maintained over an 80% persistency rate.

 

[Frank Stastny]

no, no ... they are just deducting it from my next pay ... i had $4000 in EFT's these past two weeks ... it's out of control ... so my balance to the insurance company is eating away my pay ... in short, i aint getting nothin ... and i didn't expect it and i'm completely screwed ... so ... im thinking that this advanced bullcrap is not a good idea ... but when you're broke to start with, you got take chances ... it worked for awhile ... ha! until i had enough policies to increase my EFT odds ... then i had a slow month last month ... and BOOM ... BANKRUPT ... it was short and sweet ... now back to square one ...

I'm ready to bend over again ...

We need to talk again about selling Med Supps, again.

 

[jody108]

thanks Frank

 

[Frank Stastny]

Hey Frank ... up late looking at goat porn? ha ... just joking.

Med Supps ... well, i thought about that yesterday thinking that there are probably less charge backs with med supps because they actually need it for now, not when they are dead. however, med avantage kind or rules around here. I rarely find anyone around here that has medicare supplement ... in fact, most of them have medicaid ... i mean this is a poor place. Or lazy. I'm beginning to think that Lazy is a better term. I've never seen so many people on disability. I don't know how the Gov't supports these people. Maybe it's that way everywhere but it seems out of control here.

Anyway, with that said ... my ears are open ... however, i'm still resistant to cold calling ... it makes me sick to think about it ... I hate the phone!!!! Ha!

but .... this ain't working so i'm open to other ideas ...

The phone is your friend. It beats driving a cab. When you accept that, you know how to get in touch with me.

 

[jody108]

yep, that is true.

 

[Newby]

Jamesflo is right.

If you need to take advances, just start a reserve account of your own. 20% SHOULD do it. Every time you get a check, 20% goes in your reserve.

It evens out any chargebacks.