Columbian FE Meeting

[Newby]

Newby doesn't Transamerica have a 100 different grids like Columbian? I'm duly licensed with Trans as one of my contracts is higher first yr but lower renewals than the other contract.So although the imo gave me a higher Fyc on the 2nd contract he's screwing me on the back end.

TransAmerica has captive agents that are completely different. And then they have several distribution channels that have been a bit of a mess. Until recently some channels could sell some products but not others. They had entirely different commission grids. They sold their FE leads through some channels at a discounted rate but others were locked out. They resold those same leads as "B" leads through a few other channels. They weren't consistent with anything. They have cleaned most of that up as far as I know. I'm not aware of one channel having lower renewals but there could be. It might be something the upline requested himself to stack it in his favor. Companies will do whatever moves the product.

Having choices isn't necessarily bad. Some agents prefer higher renewals and lower 1st year. Most are the opposite. But the agent should be aware of the choice.

Oxford used to be 105% 1st year and 10% renewals for 10 years. When they flipped over to 120 first year and small renewals agents flocked to it. They acted like they got a raise. Monumental followed and cut the renewals by 45% and bumped 1st year 5% and everyone acted like they got a raise. One by one most companies followed. Agents aren't long term planners apparently.

But I'm not aware of any company with the variety of renewal percentages out in the field as Columbian. It's all over the board.

 

[rousemark]

They will print those grids any way the upline wants them. They are not fixed. That's why you talk to three different agents you find out they have three different renewal amounts but the same 1st year.

Everyone with Columbian has all products don't they? Are some locked out of them?

At the meeting, we were told that the two FE graded plans were developed at the request of the large FE IMOs and it was indicated they did not have access to the GI plan.

 

[Newby]

Interesting. Like most agents I learned most of this after the fact. Been doing this for couple years now. Funny enough my contract with them doesn't lay out ANYTHING related to comp. Hell, I don't think any of my contracts do but I know what my 1st year levels are. Not even sure how to broach the topic aside from bringing it up directly. I'm sure I'll get some sort of excuse as to why it is the way it is. There's been some talk about me bringing on someone underneath me and my contracts will get upped because of it but frankly I don't know that I care to if they're just going to get short changed as well. It's funny how MLM-like this business seems.

No agent should ever sign a contract with anyone without having the full commission grid in your hands first. I know it happens every day but agents are nuts if they allow that.

In the funeral industry we have to give out a standardized GPL (General Price List) to anyone who asks prices. Every funeral home has to use the exact same format so consumers can compare exact apples to apples. That doesn't mean everyone s going to go to the cheapest one. In my town the cheapest funeral home does around 50 funeral a year and the highest price one does over 1,000. But at least consumers KNOW what the prices are and they can decide if the extra cost is worth it to them. They make an informed decision.

In the insurance biz, agents sign up for all kind of crazy things. They run blind. They don't know what questions to ask and they usually get double talk for answers. That's actually how FexContracting.com came from. I just figured that if I made a website explaining how this stuff is really supposed to work it will open agents eyes that are in a bad situation or about to sign up for one. Thousands and thousands of agents have had their first dose of reality from that website. A few years ago that was groundbreaking stuff.

I would propose that all the good IMOs make a standardized commission grid with all their companies listed. Show 1st year and renewals commissions that ALL agents get. No production required. No downline recruiting required. There can always be negotiations for higher levels if the agent has proven production but the base street commissions should NOT be a mystery for agents to find out about. And it should not be a verbal conversation because we see way too often where an agent is told one thing and given another. At Fex we created that a few years back. No agent gets less than those commissions on that grid. And anyone who inquires gets the grid.

I can't tell you how many times when an agent calls me wanting to discuss contracting and he doesn't clearly know what commission levels he is even on. I can't believe that agents aren't bold enough to demand things like that BEFORE signing anything. I can guarantee you I never signed up blindly with anything when I was a new agent. That may be why I'm still here 20-years later.

 

[Rearden]

Listen to Newby and SirHerbie. Their Columbian analysis is spot on.

Plus it says a lot that Scott and Travis passed up on Columbian given how they run their business. Staying true to principles. I like it.

 

[Todd King]

We looked at Columbian as well but there was so much double-talk about the so-called "new" product that was coming out that it just turned us off to it altogether. My suspicions of what they were doing seems to have been correct. Another company with a gimmick that's not going to pan out. Of course, they will get some agents writing their crap.

Still sounds like a product that can be replaced easily.

 

[Baseball7]

Classic Elite is esentially the same if not stricter UW critera as MOO living promise, and they price about the same FWIW

 

[jdeasy]

Classic Elite is esentially the same if not stricter UW critera as MOO living promise, and they price about the same FWIW

Then it will be easily replaced by FU.

 

[Baseball7]

Then it will be easily replaced by FU.

You have many agente out there replacing FE with Fully UW and getting a client through that process without a problem?

 

[jdeasy]

You have many agente out there replacing FE with Fully UW and getting a client through that process without a problem?

I don't have any agents at all. But I write FU anytime the person qualifies for it. And yes, the people that qualify for stuff like settlers gold and stuff like that can easily get through FU. But, what's the process? A few more pages on the app?

 

[NewbieNewbie]

I don't have any agents at all. But I write FU anytime the person qualifies for it. And yes, the people that qualify for stuff like settlers gold and stuff like that can easily get through FU. But, what's the process? A few more pages on the app?

JD on these cases are you writing FU with no exam, or are you doing a paramed,blood, and urine too. Thanks.