FE Over Phone Top Producers

[theinsuranceman]

Doesn't really matter - you say to-MA-to, I say to-MAH-to.

The bottom line is that someone walking in the door for this particular offer can expect a whopping 70% commission, and around a minimum of $400 a week lead cost. Equita is better than that.

But don't forget that charge backs NEVER deducted from adv. comm. the way other co.'s do. Crunch the numbers with a 100% contract and FULL charge backs being deducted from your NEXT adv. comm. VS 70% or 80% contract with charge backs NEVER deducted from adv. comm. Use same persistency ratio for both calculations. You'll be surprised.

What's MAH?

 

[Tom Highway]

But don't forget that charge backs NEVER deducted from adv. comm. the way other co.'s do. Crunch the numbers with a 100% contract and FULL charge backs being deducted from your NEXT adv. comm. VS 70% or 80% contract with charge backs NEVER deducted from adv. comm. Use same persistency ratio for both calculations. You'll be surprised.

What's MAH?

It's a term we use in Alabama - like "I'm about to put MAH foot in your behind!"

Just kidding. It's just semantics, like how you pronounce a word differently. Do you have a spreadsheet or something that you could email me to quantitatively show the chargebacks vs lower contract?

 

[jdeasy]

But don't forget that charge backs NEVER deducted from adv. comm. the way other co.'s do. Crunch the numbers with a 100% contract and FULL charge backs being deducted from your NEXT adv. comm. VS 70% or 80% contract with charge backs NEVER deducted from adv. comm. Use same persistency ratio for both calculations. You'll be surprised.

What's MAH?

A chargeback is a chargeback is a chargeback. You will get more charegebacks with LH because you will have more of them replaced. Maybe that's why they help finance the chargebacks?

You can't put enough lipstick on that pig.

 

[Tom Highway]

A chargeback is a chargeback is a chargeback. You will get more charegebacks with LH because you will have more of them replaced. Maybe that's why they help finance the chargebacks?

You can't put enough lipstick on that pig.

Right on. Hey, did you get my message? I've been wondering what you're up to.

 

[theinsuranceman]

A chargeback is a chargeback is a chargeback. You will get more charegebacks with LH because you will have more of them replaced. Maybe that's why they help finance the chargebacks?

You can't put enough lipstick on that pig.

Charge backs have not been a big deal for me. Once a person has a policy for 2-3 months (and longer) they are in their comfort zone and won't usually switch that easily just to save $5 or even $10 a month.

Yes..it is SWEET not having to sweat charge backs every month!

 

[Todd King]

But don't forget that charge backs NEVER deducted from adv. comm. the way other co.'s do. Crunch the numbers with a 100% contract and FULL charge backs being deducted from your NEXT adv. comm. VS 70% or 80% contract with charge backs NEVER deducted from adv. comm. Use same persistency ratio for both calculations. You'll be surprised.

What's MAH?

Either way you still owe the money back on a chargeback. Whether you pay it now (and avoid interest) or later doesn't matter.

It also has nothing to do with your contract level.

I would rather have a higher contract and deal with the chargebacks than a lower contract dealing with the same chargebacks!

Tom, you are correct about LH's high rates too!

 

[vanquishV12]

So if an agent deducts 15% of the advanced commission on the FE sale and puts that in a separate account he shouldn't worry about taking less in commissions right?

 

[Newby]

I'd take the higher contract and no advances.

Or my method, put 15% in your own reserve account and pay your own chargebacks as they happen. Just don't make the mistake of counting the 15% as income bbecause that account goes up and down.

But a 105% or higher contract minus 15% for your own reserve account still leaves 90%. I've never had to worry about chargebacks out of my advances using this system with ANY company.

I agree that LH will get replaced more often then other companies UNLESS they are VERY unhealthy which may make LH a good option for them.

Does LH pay a higher amount for agents that don't take advances?

 

[Mark]

I'd take the higher contract and no advances.

Or my method, put 15% in your own reserve account and pay your own chargebacks as they happen. Just don't make the mistake of counting the 15% as income bbecause that account goes up and down.

But a 105% or higher contract minus 15% for your own reserve account still leaves 90%. I've never had to worry about chargebacks out of my advances using this system with ANY company.

I agree that LH will get replaced more often then other companies UNLESS they are VERY unhealthy which may make LH a good option for them.

Does LH pay a higher amount for agents that don't take advances?

All of the companies that I deal with withhold 15% of my commissions in a side fund and some of them even pay me interest on the money. I asked them to set this up for me and they did. Chargebacks is just part of this business and I didnt want to get hit with some and not get paid next week.

 

[jdeasy]

Right on. Hey, did you get my message? I've been wondering what you're up to.

I haven't gotten a message or email from you in quite some time. Maybe 3 months or more.
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Charge backs have not been a big deal for me. Once a person has a policy for 2-3 months (and longer) they are in their comfort zone and won't usually switch that easily just to save $5 or even $10 a month.

Yes..it is SWEET not having to sweat charge backs every month!

You're gonna save them quite a bit more than $5 to $10 month. But, even if you don't, people will change quite easily for $10/mo savings on the same coverage.

On a $50/mo policy, that's a 20% savings. Who in their right mind wouldn't save 20% on the exact same coverage?

To answer Newby's question. No, LH doesn't pay an agent more if they don't take advances. On their direct bill, they cut the agent commission in half. Something else wonderful that they do. If the client pays from a saving account instead of a checking account, they cut the agent commission 25 points.