FINAL EXPENSE DIRECT OR DIGITAL BGA?

[nickin910]

Howdy! I'm making a move into telesales and specifically only want to work with inbounds (no warm / cold calling).

I'm torn between these two IMOs (Final Expense Direct and Digital BGA).

I understand there's more freedom with Digital BGA and they seem to have great leadership and a great handle on the market, etc - but the $85 TV inbound lead cost has me very wary (4-5 leads a day would amount to around an $8400 a month lead cost!!).

Final Expense Direct has a $27 per in bound lead cost - quality is probably not as good as Digital BGA - but they claim to have an average close ratio of 15%.

To me the numbers are in favor of Final Expense Direct.

I specifically would like to hear from any agents who have worked with Final Expense Direct in the past who could speak to their lead close ratio.

Please no irrelevant posts.

Thank you so much!

 

[jdeasy]

Howdy! I'm making a move into telesales and specifically only want to work with inbounds (no warm / cold calling).

I'm torn between these two IMOs (Final Expense Direct and Digital BGA).

I understand there's more freedom with Digital BGA and they seem to have great leadership and a great handle on the market, etc - but the $85 TV inbound lead cost has me very wary (4-5 leads a day would amount to around an $8400 a month lead cost!!).

Final Expense Direct has a $27 per in bound lead cost - quality is probably not as good as Digital BGA - but they claim to have an average close ratio of 15%.

To me the numbers are in favor of Final Expense Direct.

I specifically would like to hear from any agents who have worked with Final Expense Direct in the past who could speak to their lead close ratio.

Please no irrelevant posts.

Thank you so much!

Tell them to show you proof of the 15%.

I don’t know anything about them but I’m betting that’s just not true.

I would say the same thing about 10% too.

And I’m not a gambler.

I would bet anyone at FED that they do not average 10% close across the board.

And give them odds.

 

[Rearden]

I know the people at DigitalBGA personally. Plenty of examples of success.

 

[jdeasy]

I know the people at DigitalBGA personally. Plenty of examples of success.

Can you share some of those examples in detail?

 

[Rearden]

[EXTERNAL LINK] - DigitalBGA - scroll down for detailed case studies.

 

[nickin910]

I know the people at DigitalBGA personally. Plenty of examples of success.

I’ve watched several of the agent interviews that Jeff Root does with his guys at Digital BGA.

Definitely has a good system in place. Also seems very transparent.

 

[nickin910]

Tell them to show you proof of the 15%.

I don’t know anything about them but I’m betting that’s just not true.

I would say the same thing about 10% too.

And I’m not a gambler.

I would bet anyone at FED that they do not average 10% close across the board.

And give them odds.

I attached a screenshot of a weekly leader board they posted on YouTube.

I blocked out the names and the guys face.

If this is accurate it looks like many of his guys have a 20% or higher close ratio.

You think he would post bogus numbers with names of agents on a public platform?

 

[DonP]

I attached a screenshot of a weekly leader board they posted on YouTube.

I blocked out the names and the guys face.

If this is accurate it looks like many of his guys have a 20% or higher close ratio.

You think he would post bogus numbers with names of agents on a public platform?

No I don’t think any of these guys are lieing . Yes all these #’s quoted look very incredible and amazing . But all that matters is what your net ( after all expenses ) at the end of the yr . Also what are you looking for long term ? So let’s look at paying for your leads . To really have a chance to “ net “ 6 figs” you must spend $1500 min plus each and every week . Most of these telesales shops even the good ones start agents at 100-110% max ( street is 120%). Few agents will commit that much .That model seems to be dieing as the cash outlay is so great .

Let’s focus on the new rage “ free leads “. It seems to be taking the industry by storm . Why has that exploded ? A few reasons . Massive eye popping profit margins and ease of getting much cheaper leads in quanity than 3-10 yrs ago . Think about were the industry was and is now . Direct mail and face to face was the tried and true model to sell fe for decades . You could physically see the person and hopefully form a connection when selling . Thus retention could be high . Then interesting the last 5 yrs somethings happened . Postage rates have skied and returns fell . That $30 direct mail card is now $50-$70 a card ( if you’re self mailing . $500-$700 a 1000 at 1% return ) . Many areas only get .4-.6% return . The great majority of agents fail with that .

So the last 2 yrs free leads have gone wild . I listed the reason why . Also an endless supply of agents to choice from . Who wouldn’t want free leads ?The real reason for the explosion is massive profit margins x massive vol potential with cheap abundant leads .If I’m giving you something “ free” I control all the cards . Take it or leave it as 1000 guys behind you want to do it . Most fmo’s starting you at 30-50% ( that’s max). The high vol Fmo is making 150% ( some CO’s higher ) . Think about that . You sell $1000 a year policy you make $300-$500 and your fmo makes $1000-$1200 overide . So it seems the avg guys on these leader boards with free leads that stay around doing $20 k a month . Let’s be generous and say there doing 80% persistency . Let’s say $15k staying on books .They make $ $4500-$7500 take home . Good money nothing to sneeze at . But let’s look at your fmo . He’s go big expenses . I fig after all expenses he “ nets “ 60% overrides min . So on your $15 k net premium for the month he’s netting $9 k min . Put 30 agents doing that and your looking at netting over $3 mil a yr . Thats just the front end . He’s making 7-10% override renewal ( remember you get 0) year in year out on all that 10’s of millions of premium his agency has in force . Theoretically his renewal overrides pays all his expenses . me wrong 1000’s of agents who would have failed are now making a living . But let’s not be naive . How are all these agents suddenly doing $30-$50 k a month vol ? I bet min 5 times the # of telesales agents doing $30 k vs face to face . But how ? Fe demographic now massively online . The ease to press a ad is so easy These lower income people press many ads . The intent and effort is much lower than filling out a direct mail card . Thus the persistency is much lower for telesales .But vol makes up for that

So let’s look at the agent earnings . Yes they can make a good living . But they make no residuals or little if any . So you’ll be hustling yr in yr out making a paycheck like a 9-5 worker . Plus if you don’t keep producing at a high level you’re gone . I think a good place to start to learn but it’s a job with no benefits . Good place to start and learn but certainly not a long term career

 

[noah]

Headline from marketer should read…..
“Do you have 10-15k set aside to invest in leads to start a business “ ?

“I am looking for 100 newly licensed agents to invest to help me offset my chargebacks”

“I need at least 100 agents a week because 95 will fail because the sales they make will not stay on the books”

 

[jdeasy]

I attached a screenshot of a weekly leader board they posted on YouTube.

I blocked out the names and the guys face.

If this is accurate it looks like many of his guys have a 20% or higher close ratio.

You think he would post bogus numbers with names of agents on a public platform?

Bogus? No

The whole picture? Also no.

Every IMO can trot out their top producers and show incredible numbers.

Let me give you an example, FEX's top agent id over $14K this week. Do you think he's going to do over $700K for the year? To be in the top 10 this week you had to have over $10K. Do you think we will have 10 $500K producers this year?

If FEX wanted to they could use that snapshot to say that. But FEX doesn't operate like that.

But if you believe it then sign up with them. You will find out soon enough. Just make sure you can get released from them if it's not for you. If they won't give releases then stay away.