FE Over Phone Top Producers

[theinsuranceman]

Trust me ... I don't need examples of the chargeback process. My issue is that you say things that are worded to mislead. You said for example:

"Will you make more more $ after one year? No. The math doesn't allow for that.

Will you have a higher probability of making it after one year? Yes."

The bottom line is that you attempted to make it sound like a 70% commission with chargebacks coming from renewals, was a financially better move than 100%+ with chargebacks upfront. You even went as far as to say "crunch the numbers" and "you'll be surprised'

Well I did crunch some numbers and I'm surprised that anyone would take that deal. You also didn't answer my question concerning renewals. I'm guessing that's because they're probably in the 2%-4% range?

So tell us about this great lead program that's worth a 40% pay cut? I don't know about you, but for 40% of my income, I can generate more leads than I could ever possibly work running 24x7. And that doesn't include the referrals I pull.

"Crunch the numbers and you'll be surprised" is to illustrate how much easier it is to survive when you don't have full charge backs. I NEVER said a lower comm. % makes you more $$ as that's mathematically impossible. I understand you NOT understanding this simple math concept since you never saw the 6th grade or beyond.

The standard FE lead touting "$225 Soc. Sec. death benefit" will easily cost $25-$40 each. How? $400 cost to drop 1000 piece mailer yielding a 1%-1.5% return ( if lucky). $400 /10 returns = $40/lead cost. $400/15 returns = $26.67.

Even if you have a discount on your mail drop (say you are dropping 50K pieces) and only pay $350 the lead costs would be $350/10 returns = $35 each. $350/15 returns = $23.33.

Now CRUNCH the above equations with only a .8% return or a .5% return and the lead costs are astronomical! 5-8 returns on a 1000 pc. mailer happens quite a bit. Of course you seem not to know that, yet you boast you would have more leads than you could work 24/7. LOL!

The FE leads we have been working have a much lower response rate as they don't even mention "$225 Soc. Sec. death benefit" nor do they mention "free information". Our piece talks about how expensive funerals are ,etc. and also say "if you would like to get a whole life policy to mail the card back in". Are you even familiar with FE direct mail pieces and the duifferent wording that is used?

Getting back to you quoting my 2 quotes up above in itallics...yes if full charge backs with a higher comm. knock you out of the game after say 6 months, and NOT having full charge backs with a lower comm. keeps you in the game past 6 months..say another 6 months or even much longer..then who made more $$$? Since your comprehension skills are lacking I'll explain it for you...it's the agent WITHOUT the full charge backs at the lower comm.

Of course if the agent has the financial ability to withstand full charge backs and have $1k-$3k tied up ALL THE TIME to keep their pipeline of leads full then your argument would have some merit to it. Of course if you were recruiting you would tie even more $$$ keeping all your sub agents busy with 20+ leads per week.

I think you still need to work a little more on your COMPREHENSION of the English language but your GRAMMAR has showed dramatic improvement. Good job.

 

[Tom Highway]

dead horse

 

[WinoBlues]

PMFBI, FE is only one part of my business, But are charge backs that big of a deal? Are they that common?

Thanks.

 

[Tampa Teddy]

PMFBI, FE is only one part of my business, But are charge backs that big of a deal? Are they that common?

Thanks.

It's not that common at all if you're actually doing your job, as well as meeting clients F2F. If you're selling over the phone to low income, it is a big deal.

 

[WinoBlues]

Thanks for the reply.

Just wondering. We had two last year. Well actually 4, 3 were in one house. Money wise no big deal only about $800. total

In reading some of these post I got the impression that guys were losing alot more. As far as phone v F2F we are about 50/50 however ours are all referrals or orphans so that makes a difference. And I have been doing this for longer than some new guys, that could be a differance also.

I agree that cold calling and writing would be tougher to get to stick. My guess would be that a lot of modified policies are issued where the client may think that they are covered day one.

Anyway, just wondering.

It's not that common at all if you're actually doing your job, as well as meeting clients F2F. ..

 

[insuranceexec]

dead horse

Let me help you kick that dead horse.......LOL

 

[Merlin]

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.

I'm not quite following the whole chargeback worry. Most of the agents I work with acknowledge that with a 9 month advance, they essentially have the other 25% income coming to them in months 10, 11 and 12. They also acknowledge that if you are a strong agent you should only have about a 10-15% lapse rate. So, you never really see the chargebacks except in the first 9 months that you begin writing business with said company.

 

[WinoBlues]

That was kinda my point also. If someone is having that many charge backs they need to change what they are doing. Why work for free.
Writing lapses are basicly like Pay Day Loans.

I'm not quite following the whole chargeback worry. Most of the agents I work with acknowledge that with a 9 month advance, they essentially have the other 25% income coming to them in months 10, 11 and 12. They also acknowledge that if you are a strong agent you should only have about a 10-15% lapse rate. So, you never really see the chargebacks except in the first 9 months that you begin writing business with said company.

 

[Mark]

I'm not quite following the whole chargeback worry. Most of the agents I work with acknowledge that with a 9 month advance, they essentially have the other 25% income coming to them in months 10, 11 and 12. They also acknowledge that if you are a strong agent you should only have about a 10-15% lapse rate. So, you never really see the chargebacks except in the first 9 months that you begin writing business with said company.

I like to have a little insurance on my debit balances...
No matter how good an agent is, they will end up sooner or later with laspes and chargebacks....A lot of times an avg agent will owe the company more then what the company owes him...

IF I owe more money then is in the side acct, they still wont touch my next paycheck...It is like having insurance on debit balances..

For me it just works. If at the end of the year, I have money left over, then I look at it as a bonus and some of the companies will even pay you interest on the money.

 

[Merlin]

I like to have a little insurance on my debit balances...
No matter how good an agent is, they will end up sooner or later with laspes and chargebacks....A lot of times an avg agent will owe the company more then what the company owes him...

IF I owe more money then is in the side acct, they still wont touch my next paycheck...It is like having insurance on debit balances..

For me it just works. If at the end of the year, I have money left over, then I look at it as a bonus and some of the companies will even pay you interest on the money.

I completely agree, makes total sense. As Earned is obviously the way to go but very few agents can make it without the advance.