Funera Home Sales

Jul 17, 2008

  1. magagent
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    magagent Guru

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    Everyone feel free to chime in but I know for sure Newby is an expert on this question. I was asked the other day by a relative if someone is working for a "funeral home" selling their plans, do they have to remain captive to that funeral home. In other words if I take a job with xyz funeral home, can I also sell MOO,AIG,Royal Neighbors, Life Insurance plans If I develop MYown leads that have nothing to do with the funeral home?
     
    magagent, Jul 17, 2008
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  2. xrac
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    xrac Guru

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    This type of situation is always determined by your status with the funeral home (captive or independent) and what does you contract say if you have one. My guess is that you can do what you want to outside of the funeral home leads but as you say Newby is the resident expert in this market and believe me he knows what he is talking about.
     
    xrac, Jul 17, 2008
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  3. Newby
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    There are all kinds of different deals out there.

    Some funeral homes will have you as an employee and have benefits and tell you exactly what to sell.

    Others will want you to be a free agent and run their whole marketing program.

    If you sell other products (especially life insurance) you have to be crystal clear that it is NOT a funeral preplan policy. Funeral homes do NOT want people thinking that final expense insurance is in any way a guaranteed preplan.
     
    Newby, Jul 17, 2008
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  4. mswebb06
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    mswebb06 Super Genius

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    So, if you went work for one of the larger corporate funeral homes (bad idea in mind) and they hired you as a employee, benefits everything... Could magagent or whoever is asking not also sell other types of insurance that has nothing to with the funeral home. I certainly do not know the types of funeral homes like Newby does, but in my area Stewart Enterprises are very big. Interesting thread.
     
    mswebb06, Jul 17, 2008
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  5. Newby
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    First of all, I wouldn't go to work for a big corporate unless you just want the training. They will definitely stifle your other sales as well as give you uncompetitive funeral prices, bad insurance products and have 3-times as many salespeople chasing the number of clients as they should.

    Find a good, well run, competitively priced locally owned funeral home and you will sell more, make more, and be much more appreciated.
     
    Newby, Jul 18, 2008
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  6. mswebb06
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    mswebb06 Super Genius

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    I do not know where magagent is, but in the state that I am located in (Mississipp) a insurance license is not even needed. Everything is done through a funeral "trust".
     
    mswebb06, Jul 18, 2008
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  7. Newby
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    They may be using bank trusts for the pre-need funeral funding. And cemetery sales (grave spaces, headstones, mausoleums, caskets, burial vaults etc.) don't require an insurance license.

    There may be a state law against using insurance to fund pre-need funerals in Mississippi, I don't know. Makes it more difficult. They would all have to be single pay plans and the taxes on the growth fall back on the consumer. Insurance funding is a better option if it is available (tax-free growth on the face amount as well as tax free death benefit, multi-pay options, usually more portable if the consumer wants to transfer it.)

    Again, I would strongly recommed seeking out a good, well run locally-owned funeral home to compare. There are many layers of management within the corporates that all have a mouth to feed every time a sale is made and they add NOTHING to your production.

    With corporate funeral homes: prices are higher, consumers are usually much less satisfied with previous services, commissions are about half, rates on their insurance products are much higher, growth on the inflation protection is lower, early payoff options for consumers are worse etc. It all adds up to a harder to sell product and less job satisfaction and less income for you.
     
    Newby, Jul 19, 2008
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  8. magagent
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    I am in the New Orleans area, I recently sat down with the sales manager of a corporate pre-need funeral company this is practically what he had to say. He has two other councelors right now and need to hire four more, so he (sales manager) does not have to sell anymore. The position would be a base salary plus commission, paid trainning, w-2 position. He said he will call sometime this week, and we can discuss comps in more detail, how many funerals they do per month, and yearly.

    I know the strong warning againist working for a large corporate funeral home. Any thoughts?
     
    magagent, Jul 21, 2008
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  9. mcleanbr
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    mcleanbr Super Genius

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    You may like the security and training of this position initially. I would be careful of being locked out of the market in the future with a non compete clause or some other silly contract wording. You might ask if there is an independent option to the position, if you are up for it. If it is a captive agent position, this could be a problem too. Get a contract and read the fine print.
     
    mcleanbr, Jul 21, 2008
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  10. Newby
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    I sent you a PM with contact info for one of our competitors that is based out of New Orleans. They're very good. I would call them and see if they are looking for agents right now.

    I really would avoid the Corporates unless you just have no other options.
     
    Newby, Jul 21, 2008
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