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

[Newby]

Horribly incorrect statement.

I know personally dozens of captive agents who are on a free lead model, make more than the average agent (50k) and never spend a dime on leads. Its obviously very profitable to the IMO as well, or it wouldn't be sustainable. These agents are scattered throughout the agent working for the same company.

NEVER may be too definite of a word but I stick with rarely.

Every one of us that contracts agents gets the call all the time from the agent working his free lead Upline. The conversation goes like this...Yeah I want to pick up your Oxford and RNA at 120% because I need to leave my Trans and UHL where they are at 60% because they give me free leads.

You telling no one else gets those calls?

 

[Rirwin]

NEVER may be too definite of a word but I stick with rarely.

Every one of us that contracts agents gets the call all the time from the agent working his free lead Upline. The conversation goes like this...Yeah I want to pick up your Oxford and RNA at 120% because I need to leave my Trans and UHL where they are at 60% because they give me free leads.

You telling no one else gets those calls?

There is no doubt that happens. But dont you think captive shops get similar calls saying I need to change because I can't afford leads/not getting enough leads/not enough training/ etc?

Captive shops have their role in this business as does independent shops. In regards to risk, I'm not sure who's is bigger but I will say that if a captive shop offers leads and training they are making a larger investment upfront in their agents bc they spend money with no guarantee they will get a return. Indy shops may waste a little time, but if a dud doesn't produce the imo still probably made a few bucks on the lead side.

 

[Newby]

There is no doubt that happens. But dont you think captive shops get similar calls saying I need to change because I can't afford leads/not getting enough leads/not enough training/ etc?

Captive shops have their role in this business as does independent shops. In regards to risk, I'm not sure who's is bigger but I will say that if a captive shop offers leads and training they are making a larger investment upfront in their agents bc they spend money with no guarantee they will get a return. Indy shops may waste a little time, but if a dud doesn't produce the imo still probably made a few bucks on the lead side.

I don't think most captive shops have great training these days. It's too much of a revolving door. I think the good indy shops lead the industry on training.

And when you supply the agent with free leads and the agent fails out, you would still give those free leads to the next agent. If you gave them away free they aren't going to be his exclusively if he can't sell them.

There are definitely plenty of agents who want to work for low commissions and free leads. But those are not the creme of the crop of agents. There can be an exception occasionally. But over all they will be the bigger collection of sub-standard agents. They don't believe in themselves or they would never want to work that way.

 

[HoosierLife]

I don't think most captive shops have great training these days. It's too much of a revolving door. I think the good indy shops lead the industry on training.

And when you supply the agent with free leads and the agent fails out, you would still give those free leads to the next agent. If you gave them away free they aren't going to be his exclusively if he can't sell them.

There are definitely plenty of agents who want to work for low commissions and free leads. But those are not the creme of the crop of agents. There can be an exception occasionally. But over all they will be the bigger collection of sub-standard agents. They don't believe in themselves or they would never want to work that way.

I don't know, I've talked to a number of $200K+ One Life producers getting 40-50 fresh leads a week at 50%.

I show them the math and they are slow to move. Even with @OttoGraf having come from a similar background and writing $350-$400k a year consistently.

You can make a ton more money buying your own leads at double+ the comp.

The thing with those free lead shops is if you don't have at least 80+ PPL, you don't get free leads at all. And you're right, they usually work in regions under a manager, so if somebody does fail out, they can give those leads away.

Still a lot of risk for the IMO upfront. If you had been at it for years and didn't sell exclusive leads, I could see transitioning into something like this, but I would never want to.

 

[myinsurebiz]

I don't know, I've talked to a number of $200K+ One Life producers getting 40-50 fresh leads a week at 50%.

I show them the math and they are slow to move. Even with @OttoGraf having come from a similar background and writing $350-$400k a year consistently.

You can make a ton more money buying your own leads at double+ the comp.

The thing with those free lead shops is if you don't have at least 80+ PPL, you don't get free leads at all. And you're right, they usually work in regions under a manager, so if somebody does fail out, they can give those leads away.

Still a lot of risk for the IMO upfront. If you had been at it for years and didn't sell exclusive leads, I could see transitioning into something like this, but I would never want to.

If a One Life Agent is doing $200k they are at 65% + . . .

 

[HoosierLife]

If a One Life Agent is doing $200k they are at 65% + . . .

True that. That's what he was at. They start at 45/50% though.