Do FMOs and General Agents help you with lead generation? If so, how do they do so?

[ly1113]

Hey guys,

Have a two part question was hoping to get some clarification on.

1) Do FMOs and General Agents help you with lead generation?

2) If so, how do they actually do this? Most of their websites are pretty vague. Do they actually generate and sell leads to agents and agencies directly? Or do they just refer agents to lead gen companies?

Thanks!

 

[Newby]

Hey guys,

Have a two part question was hoping to get some clarification on.

1) Do FMOs and General Agents help you with lead generation?

2) If so, how do they actually do this? Most of their websites are pretty vague. Do they actually generate and sell leads to agents and agencies directly? Or do they just refer agents to lead gen companies?

Thanks!

Good ones do but not all. Some have good lead programs. Some have garbage. And some make more money selling junk leads to their agents than they make on insurance sales.

Don't believe marketing hype. Research the agencies you consider. Talk to agents who are successfully selling for them. (Not recruiters, real high producing agents). Sit in on their training calls or meetings and get a feel for them.

Any agency that is built on multi-level recruiting (where they encourage you to recruit down line agents) is usually a bad sign. If they would allow or encourage you as a new agent to put other agents under you, red flags and alarm bells should be going off in your head.

Any agency that reduces your commissions in order to "subsidize" your leads is a bad sign. You should be free to buy your leads anywhere you want to. You need your full commissions to do that. They should have great lead programs available (talk to current agents that you seek out to verify the quality) and should be able to refer you to great lead vendors that you can buy leads from directly. Never, never, never give up any % of your commission level for any lead program. There is no reason to ever do that. Agents who give up commission % to get a "lower price n leads" or "free leads" are suckers (and real bad at math.)

Any agency that is difficult to get your starting commission levels in writing is a bad sign. (If they say vague terms like "street level" they are yanking you. You need numbers. ) If getting a written copy of your starting commission levels feels like an Easter Egg Hunt, that isn't a place you want to be.

any agency that private messages you on forums like this (now called conversations) is a bad sign. Honest agencies openly invite you to check them out.

With all that said: I invite you to consider selling Final Expense and check out our agency at www.FexContracting.com

 

[ly1113]

@Newby Thanks for such a thorough and thoughtful answer. What about alliances/clusters? Do they generally provide leads as well? Or not really? Trying to understand what I should expect.

 

[Newby]

@Newby Thanks for such a thorough and thoughtful answer. What about alliances/clusters? Do they generally provide leads as well? Or not really? Trying to understand what I should expect.

I’m not familiar with alliances or clusters at the agent level. Might be legit but not common in my niches of FE and Medicare.

On the agency level it’s common to join a group and pay a monthly fee to buy into higher commission levels. That works great for agencies with production. But for a new agent I don’t see how you could come out ahead.