Duford Insurance Group vs. Digital BGA for Final Expense Telesales

[rmhaire]

What makes you think that?

Not too long ago you replied to an agent that was on here bitching about your program. And you stated that if an agent didn't follow the system that you'd basically drop him. (My words not necessarily yours) I can go back and find the post if you like.

To an independent like me ... over 50 years now ... that's makes you captive. True independents aren't about to give up that much power and control.

Don't get me wrong. I'm not knocking you or your company. I'm simply stating the fact that we are traveling down different roads.

 

[JRoot]

Not too long ago you replied to an agent that was on here bitching about your program. And you stated that if an agent didn't follow the system that you'd basically drop him. (My words not necessarily yours) I can go back and find the post if you like.

Please link to it. It's likely misinterpreted because it's not true.

We've never dropped an independent agent for not following a system.

 

[rmhaire]

Please link to it. It's likely misinterpreted because it's not true.

We've never dropped an independent agent for not following a system.

I'll start looking for it. But note: I never said he was an independent. I just said agent.

 

[rmhaire]

Please link to it. It's likely misinterpreted because it's not true.

We've never dropped an independent agent for not following a system.

Here you go: Your reply to Pass990

Pass990 said: ↑
Also, it seems that if you don't hit a specific closing %, they'll terminate you.

Not true at all. We let agents go that don't do any activity and release them wherever they want. There's no termination - we just shut down their access to our daily huddles, training and tech since they're not working anyway.

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Digital BGA - experience and telemarketing leads?
Jan 22, 2021

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[JRoot]

Completely misinterpreted. All I meant there is if an agent doesn't do the activity, they're free to go to another agency and we'll release them because telesales isn't for everyone.

However, it was clarified in the next paragraph that you omitted.

"If an agent isn't closing a certain percentage, we won't terminate. Quite the opposite - we'll continue to train and support that agent as long as they're putting in the effort. Here's a prime example of an agent who issued $16k last week messaging me a few days ago that we could have easily given up on him."
_

We're built around serving independent agents. Just read our reviews - they're all independent agents.

 

[rmhaire]

There's no termination - we just shut down their access to our daily huddles, training and tech since they're not working anyway.

Not misinterpreted. What I posted was enough to prove my point.

Most independents like me have our own systems. We don't need the rah rah meetings. We don't need training and we want our tech to be just that. Our tech. Nobody can shut down my access to anything I pay for .... Independence.

Again, nothing personal but it's like I posted earlier. We're traveling down two separate roads to get to the same place.

 

[Ksutton]

Not misinterpreted. What I posted was enough to prove my point.

Most independents like me have our own systems. We don't need the rah rah meetings. We don't need training and we want our tech to be just that. Our tech. Nobody can shut down my access to anything I pay for .... Independence.

Again, nothing personal but it's like I posted earlier. We're traveling down two separate roads to get to the same place.

Every IMO has things that are great for the indy agent and things that aren't. Digital is solid and very fair when it comes to the indy agent. I think it's also fair to say we could pick a few things that may be considered 'red flags' for any setup as an indy agent has, it's just the business. There is no perfect IMO or perfect plan. You have to pick with adversity you can deal with.

I don't agree with 100% of what digital does for their indy agents. In fact, I don't see anywhere that is 100% in full favor of the independent agent. Everyone is trying to make money, it's that simple.

This business is hard enough as it is, if any IMO has a mutual agreement with the agent, it's just that, a mutual agreement. The grass isn't greener anywhere, it's just a different shade.

At the end of the day, if an agent is producing, profitable, and happy then so be it. If they arn't they can explore the 100 other options available. There isn't 1 option out there that is considered perfect for the indy agent. It doesn't exist.

I've found this business is about picking your poison, or maybe even the lesser of two evils.

 

[rmhaire]

I don't agree with 100% of what digital does for their indy agents.

I have no idea what they do for them. So I can't agree or disagree.

I've got nothing but respect for Jeff. Hell, I even bough his book and read it. And I recommend it. He know his stuff.

What I posted was about independence. And I know a little bit about that. I was around before IMOs and FMOs were invented. Back in those days it was direct contacts.

Like I said. Different roads.

 

[Ksutton]

I have no idea what they do for them. So I can't agree or disagree.

I've got nothing but respect for Jeff. Hell, I even bough his book and read it. And I recommend it. He know his stuff.

What I posted was about independence. And I know a little bit about that. I was around before IMOs and FMOs were invented. Back in those days it was direct contacts.

Like I said. Different roads.

Yeah, I have nothing but respect for Jeff as well.

I never started when it was just direct contracts for indy agents. I know the business has changed a lot since I started about 7 years ago.

At this point, I'm not even confident this is a business that is going to be fruitful for indy agents starting out. I think that boat is sinking. I hate to say it. It's just getting harder and harder, more saturated and messy.
I could be wrong, but that's my opinion.

 

[goillini52]

Most independents like me have our own systems. We don't need the rah rah meetings. We don't need training and we want our tech to be just that. Our tech. Nobody can shut down my access to anything I pay for .... Independence.

This fits here.

Are you feeding the beast that will one day consume your business?
Good day,
I saw the post today of yet another huge FMO in the Medicare space selling to the massive conglomerate that has been devouring the industry for the past few years.

It made me think. What are the exposures to regular agents and agencies in these acquisitions? What is the end game in all this? Is the purchasing of these large FMO types a good investment for the venture capitalist involved?

Background:

Many agents I speak to have no idea how the distribution channels are set up in the "independent" agent Medicare world.

The system is set up as a traditional MLM (multi-level marketing) system. Not all systems are the same with every carrier, but the description below is very close to many of them.

FMO / IMO (top level)

SGA (second to the top level)

MGA (third to the top level)

GA (fourth to the top level)

Agent / Solicitor (street level)

There are commission levels paid independently to each level involved in the recruiting of the level below it. If a level is missing it is paid up to the level above it.

The agent level gets the lion share of the commissions paid. An override is paid out at each level above it. (Example: MAPD pays $450 to an agent, $50 to the GA, $25 to the MGA, $25 to the SGA, $15 to the FMO)

To make a lot of money with this the manager levels must recruit and get producers to sell.

Renewal commissions are half of the amounts above.

Latest trends:

Over the past several years, I have witnessed FMO's giving "free" Medicare quoting and enrollment systems.

When I attended a conference on this by one of the large national vendors of such systems I learned that FMO's were using these systems to keep the agent in their hierarchy. Agents could only quote and enroll what they were contracted with the FMO to use as well.

In 2019, when Medicare.gov placed a firewall into their quoting system it made the use of this tool for agents obsolete. FMO systems had to start allowing agents to see plans outside of what the agent were contracted with them for.

There has also been the rise of the "call center" in Medicare sales.

TV ads, radio, social media, cold calls from overseas, et al never stop and makes for a real challenge to the agents in the field.

One thing agents do not fully realize yet is the large FMO's own and operate "call centers" that directly compete against their own sub-agents.

They may hide them from you. They may tell you it does not compete against you.... but it does.

Did you ever stop to think....

The same FMO that gives you a "free" Medicare quoting and enrollment system has you electronically sign a USER AGREEMENT" giving them (and the data vendor) ownership of your data and the use of it.

I have heard many agents say "I wonder how they got my clients name and number to call?" "They are on the DO NOT CALL LIST" (LOL)

Are YOU feeding the BEAST?

So you're are using the "free" system (& CRM) given to you by the FMO who owns (or is connected through acquisition to) a call center. You keep putting client data in the system.

Ever ask to get the data out of the system? See what they tell you. They may say no. They may say "we'll get back to you on how to do that." They may say ok, but remember, your data is still in their system and always will be. How? You signed a USER AGREEMENT allowing it.

Could the BEAST one day turn on you?

What does all this have to do with the acquisitions of FMO's by a conglomerate?

A 1.6 billion investment was given to this conglomerate to go out and buy up the Medicare FMO's.

To date they have acquired almost every significant Medicare FMO plus, a National Medicare data vendor and the largest call center in the USA.

Eventually, those investors are going to want a significant return on that investment.

How will that be done?

If you look at the hierarchy above and add the numbers up for all levels there is a lot of commission for the FMO if they can exclude all of the hierarchies in the selling process.

Is that possible? Yes! If you use a call center to contact clients and place them in a plan and exclude all the in between entities.

Think about it. You could pay someone $20 or $30 and hour and require them to be certified to sell Medicare plans. Once it is sold, that is pennies to acquire a piece of business as opposed to agents and upline.

Better yet, if the conglomerate (owning all the FMO's) has the agents using the "free" system entering in future clients for the call center to role. The conglomerate gets paid either way, but you (the agent) helped all along.

It may also be possible that the conglomerate's call center will also market to your clients directly in an attempt to establish a relationship so to be familiar when they contact them to move them into another plan without your involvement.

Why not? You told them in the USER AGREEMENT they could do that.

Not to mention, there is a huge market for the data vendors to resell your clients information to all buyers too!

There has to be a reason...

There has to be a big reason why any entity would give 1.6 billion dollars of money to any company to buy up so much of a market. Investment capital people need a return on their investment. Both quickly and substantial from what they invested.

What can you do to protect your business

In 1998, I was a single father of three kids (7, 5, 18 months). I was working with an FMO and the long and short of it was he took my book of business in a dispute.

That is all the money we had to live on. I was devastated and it changed me forever.

I built Search & Save to help protect Medicare agents and agency's from what I just described to you.

We do not own a call center to compete against you. You own your data and the use of it with Search & Save.

My suggestion is that you stop using any "free" Medicare quoting system from your upline especially if they have been acquired by this huge conglomerate. Use Search & Save. It is less than $1 per day per user and well worth it when considering your protecting what you worked so hard to build.

Message me if you wish to discuss this or have questions.

If you are interested in protecting your book of business by using our agent built and agent serviced system; Search & Save here are some URL's to check out.

System presentation videos https://mmqsearchandsave.com

30-day free trial: https;//searchandsave.org Use any social media button to login and begin use.

Sincerely,

Scott A. Nichols
President
Search & Save
S A Nichols Brokerage
One Too Many Insurance Agency, Inc.