For New Final Expense Agents: 4 Final Expense Contract Scams To Avoid

[Baseball7]

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[Newby]

I can't believe that it's even debatable about debt roll up exposure when you have an agent on a 120% contract being greater than if they are on a 50% contract. There is no comparison. Unless your spread stays the same.

But if the IMO has a 150 and the agent is on 120 the Upline made 30 points on the sales but is on the hook for 150%.

If the IMO is 150 and the agent is paid 50% the IMO made 100% and is only exposed the other 50%

Let me tell you it doesn't feel good when a crooked agent MAKES and keeps 120% or the 75% advance on that anyway and YOU have to cut a check for not only the portion you made but 120% more.

We've all had it happen.

 

[NSRH]

But if the IMO has a 150 and the agent is on 120 the Upline made 30 points on the sales but is on the hook for 150%.

If the IMO is 150 and the agent is paid 50% the IMO made 100% and is only exposed the other 50%

Im not understanding your logic here.

 

[NSRH]

The highest risk of debt, is not roll up, but agents at low contracts, who get "real" free leads, and dont produce. Couple that with roll up debt, and you can actually have higher losses than paying agents top comp and making them buy their own leads.

 

[donamese]

Mathmatically it all depends on production and persistency to determine which is the bigger loss to an IMO. If the agent is on 120% and sells 10 policies which all end up not taken, the IMO was slapped with much higher chargeback than lead cost. If the agent is around for a year or two and only has a chargeback here or there but has minimal production and you are feeding weekly leads to, then the lead portion will be the bigger loss.

 

[Newby]

Im not understanding your logic here.

OK let's say the agent writes a case and he is paid $1,000 and the Upline is paid $200. It charges back and the agent is MIA. The agency loses $1000 and has to have 5 more good sales just to break even.

Compare that to same sale but the agent is paid $500 and the Upline is paid $700. Charges back and the agency loses only $500. Less than one more good sale and the agency has profited.

 

[HoosierLife]

OK let's say the agent writes a case and he is paid $1,000 and the Upline is paid $200. It charges back and the agent is MIA. The agency loses $1000 and has to have 5 more good sales just to break even.

Compare that to same sale but the agent is paid $500 and the Upline is paid $700. Charges back and the agency loses only $500. Less than one more good sale and the agency has profited.

But don't both uplines have to pay back the same $1200 in this scenario.

 

[Life Hawk]

OK let's say the agent writes a case and he is paid $1,000 and the Upline is paid $200. It charges back and the agent is MIA. The agency loses $1000 and has to have 5 more good sales just to break even.

Compare that to same sale but the agent is paid $500 and the Upline is paid $700. Charges back and the agency loses only $500. Less than one more good sale and the agency has profited.

Not to mention that the client my still be a viable sale... many new agents blow the sale... while an experienced agent can return and salvage or create a whole new deal.

There is a bigger picture here.

 

[Todd King]

But don't both uplines have to pay back the same $1200 in this scenario.

Yes, but in Scott's example the 1st IMO has to pay back $1000 that they never seen and in scenario #2 they only have to pay back $500 that they never seen. They got the other $700, so $700 is a wash.

 

[Thedude]

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