FE Leads in Tennessee

[theinsuranceman]

I agree that 65% is a low bar. And if an agent is not doing better than that he doesn’t need to worry about his renewals anyway because his chargebacks are going to eat those all up. I wouldn’t see that is a problem.

but I have a question for you Greg. You’ve mentioned several times that if you are financing an agent’s direct mail leads he doesn’t deserve to start at 120%. But is that his choice? Does he have the option to pay for his own direct mail leads when he takes them and have 120% commission levels starting out? If it’s the agents choice I see those has great options. But if he doesn’t have the option of taking the higher commission and paying for his own leads upfront then it seems like your program would only attract financially struggling agents who want to be in debt for their leads. That doesn’t seem wise to me for the agent or the up line.

Yes an agent has that choice.
I'd rather have an agent at 120 that prepaid for their own leads (only $375 per 1000 with us) and had immediate charge backs. My exposure to agent debt is reduced quite a bit using that model. Where else can agent get 120 and only pay $375 per 1000 dropped? If you offer an agent 120 how much does your agent pay for their drops.....$450? $475? Mine only pay $375. Thank you Sr Life! Anyone reading this is welcome to call me for a confidential phone interview.

I also use the financing model, because as you know, most new agents don't have the funds or the confidence to prepay for their own drops or the cash flow or mental strength to handle immediate charge backs. This block of agents are locked out by most recruiters so I try to make it so they can get in the game too.

 

[Newby]

I'd rather have an agent that prepaid for their own leads ($375 per 1000 with us) and had immediate charge backs. My exposure to agent debt is reduced quite a bit using that model.

I use my model, because as you know, most new agents don't have the funds or the confidence to prepay for their own drops or the cash flow or mental strength to handle immediate charge backs. This block of agents are locked out by most recruiters so I try to make it so they can get in the game too.

That’s actually not what I know. It’s the opposite actually. Most agents that are going to be successful running their own business DO have money for mail and DO promptly pay back their debts. I think how you are doing your offers is attractive to the wrong kind of agents and unattractive to the right ones. My opinion of course.

If you let agents know they can start at 120% but must be able to afford their own leads and pay off debts promptly you appeal to a much more qualified agent. Someone who plans to work and make sales. And they are not afraid in investing in themselves.

There are some people who are broke due to reasons beyond their control. But they are the minority. Most people that are poor are that way because they do the stuff that broke people do. Like take lower commissions for lower lead cost. Or prefer to kick their debts back for another day rather than address it and get it past them.

Just two different mindsets. But you should never think that there aren’t plenty of good agents that can afford to pay for their own leads for higher commissions. My data shows otherwise.

 

[theinsuranceman]

That’s actually not what I know. It’s the opposite actually. Most agents that are going to be successful running their own business DO have money for mail and DO promptly pay back their debts. I think how you are doing your offers is attractive to the wrong kind of agents and unattractive to the right ones. My opinion of course.

If you let agents know they can start at 120% but must be able to afford their own leads and pay off debts promptly you appeal to a much more qualified agent. Someone who plans to work and make sales. And they are not afraid in investing in themselves.

There are some people who are broke due to reasons beyond their control. But they are the minority. Most people that are poor are that way because they do the stuff that broke people do. Like take lower commissions for lower lead cost. Or prefer to kick their debts back for another day rather than address it and get it past them.

Just two different mindsets. But you should never think that there aren’t plenty of good agents that can afford to pay for their own leads for higher commissions. My data shows otherwise.

Addressing the bold above, I DO have that option available. Read my previous post. I prefer that model.

I also use the financing model as I explained a couple of posts above. When I got started in 1999 with The Powell's my 1st 20 DM were financed. If they were not financed I was not going to put up the $$$ up front and probably would never have got into the FE arena. I've been with them right 21 years straight now, so this financing model I use allows me to find a diamond in the rough (like they found me).

Of course with this financing model I have to be a little more selective who I want to cosign leads and charge backs for.

Hope that explains it better for you.