Does This Recruiting Opportunity Sound Right?

[DecisionMan]

Looking for thoughts about this opportunity for which I'm being recruited.

Big firm with many MDRT producers is recruiting me hard to come in under a aging 'mentor' who is very experienced, to train me in business succession and estate planning.

Must get series 7, but in return I get training two days a week, 13 months of non-refundable financing, come in at my mentors commission rate for 24 months after which my own rate will be determined on a 12 month rolling average.

For every 3 opportunities I introduce my mentor to on which we'll split the cases, I get one of his B clients.

No office expenses for first 12 months.

I've checked out plenty of Lincoln agents and some who used to work there. The training alone is excellent, and the sales manager is old-school block-n-tackling kind of guy. Rough, but you learn. I can take that.

What's weirding me out is the hook, that the mentor's don't have a succession plan and their heirs won't get a dime unless they have a successor in place.

So, why would such top producers risk their renewals by not having a successor already in place? And why not have someone from their office who is much more experienced than me?

And isn't it true that life renewals go to one's spouse? So unless its broker/dealer stuff, why did they tell me the heirs would get nothing?

Something just doesn't sound right. What do you think?

Plus, they've really sold the opportunity but haven't really cared that much about my qualifications or background. That's concerns me as well.

 

[STIBROKER]

but haven't really cared that much about my qualifications or background. That's concerns me as well.

as well as it should........

 

[VolAgent]

Someone may be handing you a wonderful gig. But when it sounds too good to be true, it usually is.

At least get it in writing. You can't make them honor the transition, but at least make sure they don't go after you for financing, office expenses, or cut your commission level.

 

[teambuilder]

Sounds like a much better offer than most newbies get.

Push the envelope on the succession plan.

If it heads in the direction you like. Plant your flag and make it happen.

 

[NCAgent]

Definitely jump into it. I have a possible mentor but it resulted in me contacting him and he didn't want to do it. So be thankful that someone is willing to show you the ropes and leave with a little more than a few extra bucks in the pocket with a book of business.

What lines are you going to sell? If you do any P&C make sure before you leave to get all the appointments you can since P&C is hard to do on your own. Make sure you get all the possible appointments and whatnot for L&H, too.

 

[xrac]

Go for it but dot your i's and cross your t's. Be sure to have it all in writing and have a plan B ready should this run aground.

 

[Mattschmidt]

Just make sure they deliver on their promises to you...It sounds like a tremendous opportunity to get trained, and eventually take over a nice practice....

 

[djs]

Wow, I must have my BS hat on today. This could be a great opportunity, but realize what is really going on here first. Then you can make a decision with your eyes open.

I don't understand the 'succession plan' statement. Maybe that's what is concerning me. Ask the potential mentor how many other trainees he has had and how long they have lasted. My guess is the answer will be several and less than a year (no surprise in either of these).

Why not someone who has been in the office for a while? Simply put, they have no new clients to bring in. They have brought in everyone they know already. If he brings you in, you will approach everyone you know, write a few policies, split with him. If you leave, he keeps the policies. In fact, if you leave, he probably even gets his 'B' policy back.

Remember, successful agents never quit, they retire on the renewals. After a certain point, usually you just have to keep your license active and you continue to draw the renewals until there isn't much left. This is why I'm confused about the succession plan, unless the agency buys out the agent at some point, which in turn would be the succession plan.

Something about your description of this made a big yellow flag raise in my mind. I'm sure they are being honest, just don't feel like they are being complete in the story. None of this is unusual, its just you need to get a better feel for what it will really take to succeed in the place.


Dan

 

[BNTRS]

Run, fast and hard. They've adapted the same exploitation scheme the big captives use, only they've put a nice window box in front to avert your attention. You give 3 new clients and get one kind of crappy one? Let's do some math.

Let's say you are ultra go-get-em-like and walk on in with a list of 200 people you know (sound familiar yet?). Al Granum told us years ago that out of 10, you'll likely meet with 3 and perform a fact finder of which 1 will buy something. That's approximately 20 new clients from your list. So you'll split the business (if you are new this might be a good idea since you probably don't know what your doing, but who knows) and for that you'll be rewarded with 6 old clients your mentor doesn't want...yippee...

If your going to fail, that won't likely happen until after you've exhausted your 200 names (funny how it always works out this way) mentor picks up 20 new clients which--according to LIMRA--are going to buy on average 5 more times throughout their life each usually larger than the one before. And even gets back those old goats that maybe still have purchase number 5 or 6 left.

Now, if you want to pursue this, here's where the rubber meets the road. How are they going to keep you in the game? This is a tough question, much tougher than you likely realize. If your mentor was really in need of your help, the deal would involve something more along the lines of setting appointments with his clients or prospects and/or preparing cases for these clients and prospects because he's busy with other things. If the deal involves your bringing clients to the table, it almost always means he needs prospects, and your a naive free lunch.

 

[djs]

BNTRS is correct, but realize that if you want to be in insurance, this is somewhat the normal price of entry. My point is simply be aware of the game, understand the game and play it as if you are the master.

Dan