jhenderson99
Expert
- 50
On EFES's website they tout agents making $15k-$25k per month. Anyone back that up or is it all BS? They sound like they have a good operation and I haven't seen anything too negative. Anyone?
Final Expense Lead Source and Companies
- Thread starter eddie
- Start date
I've researched them for awhile now, and I have not found to much negative. Some of their agents are making much more than the numbers you quoted. I know one agency that deals with them averages over $200,000.00 per month in AP. For instance that agency is already over $80,000.00 for the month of February. I hope this helps
"IF something sounds too good to be true, then look closely.... the devil is in the details." --- retread
1) read their contracts. Do they ask for commissions to be assigned to an IMO?
2) don't expect those who offer those contracts will give accurate answers to your questions verbally. Take note of conflicting answers between their managers or representatives.
3) get answers to your questions in writing.
4) note that great pricing for leads can be bait for an onerous contract.
5) "100% vesting" is in the eye of the beholder. Look at the terms of the contract you sign. Are those terms friendly or one-sided?
6) if a lead program is predicated on continuation of an IMO contract, you are captive, not independent.
7) can you get a pre-negotiated release?
8) if not, why not?
9) consider the true cost of your leads... that is, what are you giving up in commissions to get that lead price?
10) if a program is touting its top producers and large incomes, what is your gut telling you? Have you heard similar programs like NAA?
11) just how good are the salesmen of these programs? Did they wow you? Are you new to sales? gullible?
12) who are they associated with or share the same address with?
13) HAVE YOU CHECKED WITH THE DEPARTMENT OF INSURANCE FOR THE STATE THEY OPERATE IN FOR ANY FINES OR JUDGEMENTS FOR EITHER THEM OR THEIR ASSOCIATED PARTNERS?
.... just for starters.
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Depends on which "Equita" you are talking about, EMG or EFES, but no, the lead program is basic to the IMO contracts. You can't have one without the other, to my knowledge.
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Let's look at "lead cost" for a moment.
Direct mail, from all industries, is reported to be 1-3%. Most Med Sup/FE leads are reported to be 1 -1 1/2%. I am conservative, so I plan 1% return. YMMV. Obviously, you want a better return... so whose lead card are you going to use? (assuming the wording, look, and feel of the lead card is the ruling factor and not the demographics, time of year, etc.) If you try a few different lead companies, you will find by trial and error, which works best for you. Anything over 1% would be a keeper.
The math: Suppose you pay $350/1000 for a lead drop and get 1% return. That's $35/lead. (If your return is 2%, that's $17.50/lead, but for now let's just stick with 1%.)
On your own:
Let's suppose the best commission you can get is 110% FYC on a $50 average monthly premium policy.... about $600 AP. Commission would be $660. If your lead cost is $35/lead and you close 25%, at 1% return on your 1000 drop, your ROI would be ($660 x 2.5) - ($35 x 10) / 2.5=$520/lead or ($1300 <net> / $350 <cos> =) 3.7:1. IOW, for every $1 spent on leads, expect $3.70 return (before other expenses and taxes).
A popular lead program offer:
Now let's consider a contract with 80% FYC on the same product, but with $15/lead cost... no drops just returns, so we don't worry about return ratio. Buy those same 10 leads for $150, close 25% and your gross will be ($480 x 2.5) - ($15 x 10) / 2.5 = $420/lead. You give up $100/lead with the lower contract over what you would make with the higher contract. (You would also make $250 less on those same 10 leads)
Now suppose your lead cost is lowered by reason of production level to $8/lead. ($480 x 2.5) - ($8 x 10) / 2.5 = $448/lead. Not much of a gain.
Let's suppose your commission level is raised to 90% FYC at that same lead cost. ($540 x 2.5) - ($8 x 10) / 2.5= $508/lead. Going further, At 95% the math works out to $538/lead, close to what a 110% contract at $35/lead cost would produce. You will see lead cost is not nearly as important as commission level.
Now let's look at closing ratio. For the offer of a contract at 80% and lead cost of $15/lead, you will need to raise your closing ratio to 33% to just about equal the net for 110% contract at 25% close. Increase your closing ratio to 33% at a 80% contract and get $8 leads and you do just a bit better. Closing ratio is predicated on sales skill, which is improved with training and experience (among other things). Just how much training will produce a said amount on your closing ratio is a wag. Perhaps enough training can accomplish your goal, but the same applies to someone with a higher commission rate. What if your training program doesn't produce the increased closing ratio you need? H-m-m-m.
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- 16,880
Does anybody have better than a 105% with Settlers?
Newby, Settlers doesn't have that great of rates. I mean they're ok, but plenty of others out there that beat them. The Bronze is good, but if all you send in is the bronze they frown big time. Still, there are better companies, better rates and better commissions elsewhere.
It is tough to beat Settlers comp when you factor in their renewals and their marketing support. Rates are higher than Oxford and LaFayette, not that much, similar to RNA, better than Americo and Monumental, and most others, no weight restrictions on the silver plan.PDA rating software is great, able to figure how much a dollar amount will get.
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