Dave Ramsey ELP Thoughts

Jan 19, 2016

  1. artvandalie
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    artvandalie New Member

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    Since we started in 2013 thats the average. Last 6 months we are closer to 20% but the clients we end up with are exactly what we want. Higher wealth, pay in full, high deductibles. We are putting faith in our customer service to keep them on the books to realize any true "profit"...
     
  2. 1manshow
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    1manshow Guru

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    I'm surprised that Ramsey hasn't figured a way to tap in to your renewal commission.

    Legend in his own mind
     
  3. txagt39
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    txagt39 Super Genius

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    I was the ELP for a while for my market and finally woke up. He will take your money for being his "trusted advisor, ELP" without vetting your credentials whatsoever - you're good as long as the checks clear. So his credibility became questionable to me. Then I'd hear him speak about how insurance agents are ripping you off and I thought wait a minute - I'm paying you to be your ELP in my market and you're talking trash about my profession? What's wrong with that picture. I said you can have it and there hasn't been an ELP in our area since. I think he's a rip off king taking money to be the ELP for insurance, taxes, whatever - when he has absolutely no clue what you're all about yet he is endorsing you. The leads I got were worthless which was another reason I got smart and quit paying the monkey.
     
    txagt39, Jan 20, 2016
    #13
  4. Dave864
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    Dave864 Expert

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    I'm an ELP in my state--I have territory in a different area than where I live though so 100% is over the phone as coming into the office would be an hour+ commute. As we all know, no one does business face to face anymore so that's rarely an issue.

    I close 90% of the leads I talk to and quote. I actually talk to about 60% of the leads that come in the door within the first 10 days. After that, they're put on a marketing system where I occasionally get responses 30+ days out. Along with that, I get some when I schedule an x-date at their renewal. Additionally, I get client referrals from the ELP leads themselves. I ask every ELP referral for at least one other referral from their FPU group, church or work making each GOOD ELP referral worth more.

    Overall, with my close and contact ratio, each lead is really worth about $65. I pay about $1000/month to Dave but consistently close over $30k in new business premium each month so you do the math on if it's worth it. In my experience with talking with the ELP team, most insurance ELPs barely break even the first year but then roll in it with renewals. The only ELP referral I've had leave me was because he moved out of state. I know an ELP in California that has all of Northern California under his belt. He pays $2k/month and closes $75k in business.

    It works if you believe it and bust it.
     
    Dave864, Jan 20, 2016
    #14
  5. farmerbrown
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    farmerbrown New Member

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    FYI, I believe the cost is now $60 per lead.
     
  6. Rob Lion
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    Rob Lion Guru

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    So the guy that does nothing but talk shit about insurance agents is pimping on agents by being a lead vendor? And sells them for 60 a pop? holy.
     
    Rob Lion, Dec 6, 2018 at 12:53 AM
    #16
  7. Newby
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    Newby Guru

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    Years ago I went to my local ELP as a potential customer. I kept hearing Dave Ramsey talk every day about you will average 12% or more on quality mutual funds after all expenses. AVERAGE! Not maybe occasionally. Not at the once in a blue moon. AVERAGE.

    Now I had had mutual funds sitting with an Edward Jones rep for over a decade. And they weren’t averaging anything near that. Not even close. I knew Dave was a slick huckster that was on the payroll of the ELPs not unbiased. But if they say they can average 12% I’m interested.

    As soon as we sat down and I bring that up, the ELP makes a frowny face. Yeah, well, Dave kind of sets expectations pretty high on his radio show. In reality you should realistically be hoping for averaging 5 to 6% over all. We all kind of cringe when Dave says 12%. That is not going to happen when you average in down years, low years and fees.

    Nope. Not for me. I’m not baiting and switching. And I can get close enough with my indexed annuities to retire comfortably and not lose sleep when the market tanks. I did pull 100% away from Edward Jones after that.
     
    Newby, Dec 6, 2018 at 8:31 AM
    #17
  8. farmerbrown
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    farmerbrown New Member

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    I don't know why he keeps up with that 12% number. It is just not accurate. That would mean you were doubling your money every 6 years. That is not realistic. 6.5% is realistic over any 10-15 year period.
     
  9. shonceman
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    shonceman Guru

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    What????!!!! Ramsey's wrong????!!!!
    [​IMG]
     
    shonceman, Dec 6, 2018 at 4:37 PM
    #19
  10. somarco
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    somarco That Medicare Guy

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    Because he CAN and does so with impunity. No accountability either.

    Ramsey has multiple streams of income and is laughing all the way to the bank. His schtick has made him a wealthy man.
     
    somarco, Dec 6, 2018 at 4:48 PM
    #20
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