Help Picking the right Company

[JaceG]

I had another thread going but it got highjacked by a debate not relevant to the thread.

At one point someone asked what I was looking for in a company and my financial goals. So here they are in detail.

From the company:

I'm looking to learn to sell insurance with hands-on guidance. I have previous sales experience from my own consulting to technology services to products to other stuff.

Culture is vital to me, I'm pretty great at identifying good culture, but I really need to know exactly what I need to look for in order to not get trapped or shoot myself in the foot if I join the wrong team and need to switch.

I would also like to know if working with multiple companies is a good or bad idea just starting out, and if it isn't an easy answer then why is it good or bad so I can discern for myself.

I would like to be doing this 8-12 hours a day 4-6 days a week.

Financial Goals:

I would like to spend about 200-1000 a week on leads as long as I can at least double my investment reliably to come ahead on average 11 out of 12 months out of the year.

I would ultimately like to get to a point where I can make 400k a year from issued policies

I would be through the moon to hit 220k a year and content if I never ended up making more than that a year from then on for whatever reason

I would like to make 120k after business expenses (leads, etc) in less than 2 years

It is vital that I make over 70k within my first year and can put at least 70% of that in my pocket.

Some companies that have reached out to me that I've been talking to are:

Marathon VDH

FFL

US Health

I am in Tampa FL and would prefer to sell Hybrid Remote with in-office being fully optional.

Full remote would be my next choice.

And I do understand Life Insurance better than Health Insurance but have no preference as to which I sell as of right now.

I am open to other brokers to work for that might be a better fit for me.

 

[DHK]

I'm going to try to answer your questions... and then help you know the questions you should be asking.

From the company:

I'm looking to learn to sell insurance with hands-on guidance. I have previous sales experience from my own consulting to technology services to products to other stuff.

Culture is vital to me, I'm pretty great at identifying good culture, but I really need to know exactly what I need to look for in order to not get trapped or shoot myself in the foot if I join the wrong team and need to switch.

I would also like to know if working with multiple companies is a good or bad idea just starting out, and if it isn't an easy answer then why is it good or bad so I can discern for myself.

I would like to be doing this 8-12 hours a day 4-6 days a week.

First, there's a difference between agencies, firms, IMOs (Independent Marketing Organizations), etc., and companies/carriers. Your thread was derailed because we were discussing companies/carriers as opposed to agencies or firms, etc.

Culture... is subjective. I'm not looking for 'good feelings', but I'm looking for an environment that won't get in my way with over-burdened compliance oversight on everything. Now, being new, that's a GOOD thing. I've been around the block a while and I know what "stupid is as stupid does."

In the beginning, I'd stick to one agency, firm, or IMO... and determine your companies/carriers from that one organization. You need one source of training and knowledge to get started with and if you're part of multiple agencies or IMOs, you're going to get conflicting information.

And no, I cannot make the decision for you as which to choose.

There are three major themes to these kinds of positions:

Career agent vs Independent Agent vs Team Building

Let me give you some broad answers here.

A career agent is often also labeled as a 'captive' agent for a specific company: New York Life, Northwestern Mutual, MassMutual, Guardian, OneAmerica, PennMutual, Ohio National, Prudential, Mutual of Omaha... and many others.

• The upside is if/when your planning philosophies are in alignment with your agency and company's philosophies. Contrary to public perception, you aren't restricted to just one company, although some have a "first right of refusal" - meaning you write them first, and then if they are declined or have a rating below standard, then you can "shop" them.
  
  
• The downside is often rather restrictive compliance requirements. You are a direct representative of your agency and of your company, so they may have a lot of rules for you to follow. Those rules get more strict if you get broker/dealer securities licenses, such as the Series 6, 7, & 63. In addition, you will have a minimum annual production requirement to meet for the primary company you represent. Granted, if this is truly a career, that shouldn't be a problem for you.
  
  
• Another note to consider asking about is whether you're allowed to offer Fixed Indexed contracts. Some companies won't... under any circumstances. Some require you to be a registered rep with their broker/dealer and only sell those allowed under B/D supervision. Others don't care either way. If you want to sell IUL and/or FIAs, you'll want to ask about this in advance.

There's a LOT of 'noise' about being "independent" so you don't have to be a 'captive' agent. The problem is where the noise is coming from.

• Team-building companies: There are some common names and not-so-common names: Primerica, WFG (World Financial Group), PHP (People Helping People), and FFL (Family First Life). (Shh... FFL is in denial, but while you don't have to build a team, it is in their culture.)
  
  
• True Independent IMOs: These IMOs support personal producing general agents who focus primarily on production. Sure, they might have a small team, but that isn't their focus. They are focusing on building themselves as the best agent/advisor they can and bringing their best services to their clients.

Oh, IMO stands for Independent Marketing Organization, not just "in my opinion".

What are the differences between team-building and true independent IMOs?

1. Initial compensation. I've heard varying reports, but if you're starting at LESS than 55%... ask why. Any career agent shop can get 55% + bonuses. This is often my biggest complaint with the team-building groups. However, of the 4 I listed, FFL seems to start people off at a higher level. Trust... but verify.
   
   
2. Training: True independent IMOs don't necessarily provide sales training. They'll provide product training and perhaps some vendor product demonstrations, but these are primarily for experienced producers who know how to prospect, do a fact-find, prepare recommendations, ask for referrals, and so on.

If you ask me where *I* would be most comfortable, well, my personal bias is towards being an independent producer working with true independent IMOs. After 16 years, Series 7, 66, insurance, ChFC, and CLU designations... I kinda have an idea of what I'm doing. And for me, I'd generally prefer NOT to recruit.

However, my preferences are NOT for everyone. Every place has its positives and negatives.

Your job is to determine where YOU best fit and to make the most of it. From there... it's all trial and error anyway.

Big tip: Never compare companies. Companies don't necessarily matter (for the selling organizations). There are top producers everywhere.

What does matter: Your agency and your training. That's #1. If you have that, almost nothing else matters. If you don't have that... nothing else matters. You can have a 150% contract... but if you can't sell the products to get paid on it, it's worthless.

 

[DHK]

Financial Goals:

I would like to spend about 200-1000 a week on leads as long as I can at least double my investment reliably to come ahead on average 11 out of 12 months out of the year.

I would ultimately like to get to a point where I can make 400k a year from issued policies

I would be through the moon to hit 220k a year and content if I never ended up making more than that a year from then on for whatever reason

I would like to make 120k after business expenses (leads, etc) in less than 2 years

It is vital that I make over 70k within my first year and can put at least 70% of that in my pocket.

In my post above, I discuss career agent, independent agent, and team building.

Lead Costs: Generally speaking, most team-building organizations have their own in-house lead programs that agents pay for. This may be where you're getting your figures on how much to spend on leads.

Revenues: You'd like to eventually earn $400k a year. (Let's assume that you're not building a team.)

You can do that in many ways:

• 400 policies where you earn $1,000 a piece
• 40 policies where you earn $10,000 a piece
• 20 policies where you earn $20,000 a piece
• 10 policies where you earn $40,000 a piece
• 4 policies where you earn $100,000 a piece

I'm just trying to get you thinking here. It's all possible.

The real question is: who do you want to serve and how? That may be a future question to ask after you get started somewhere and you get to see what's really possible out there.

Problem solvers earn far more per sale than product peddlers.

If you watched my monopoly guide video in the other (hijacked) thread, you'd see that there are many different markets and many ways to serve those markets.

Generally speaking, the higher the per-ticket commission, the higher your specialized knowledge will have to be. And the opposite is true for the lower commissioned policies.

And I do understand Life Insurance better than Health Insurance but have no preference as to which I sell as of right now.

Based on this knowledge, what would you really like to do?
Who do you want to serve?
How do you want to help them?

Again, that may be a future question to ask as you get started and learn more in the industry.

 

[JaceG]

There's a LOT of 'noise' about being "independent" so you don't have to be a 'captive' agent. The problem is where the noise is coming from.

• Team-building companies: There are some common names and not-so-common names: Primerica, WFG (World Financial Group), PHP (People Helping People), and FFL (Family First Life). (Shh... FFL is in denial, but while you don't have to build a team, it is in their culture.)
  
  
• True Independent IMOs: These IMOs support personal producing general agents who focus primarily on production. Sure, they might have a small team, but that isn't their focus. They are focusing on building themselves as the best agent/advisor they can and bringing their best services to their clients.

Oh, IMO stands for Independent Marketing Organization, not just "in my opinion".

What are the differences between team-building and true independent IMOs?

1. Initial compensation. I've heard varying reports, but if you're starting at LESS than 55%... ask why. Any career agent shop can get 55% + bonuses. This is often my biggest complaint with the team-building groups. However, of the 4 I listed, FFL seems to start people off at a higher level. Trust... but verify.
   
   
2. Training: True independent IMOs don't necessarily provide sales training. They'll provide product training and perhaps some vendor product demonstrations, but these are primarily for experienced producers who know how to prospect, do a fact-find, prepare recommendations, ask for referrals, and so on.

If you ask me where *I* would be most comfortable, well, my personal bias is towards being an independent producer working with true independent IMOs. After 16 years, Series 7, 66, insurance, ChFC, and CLU designations... I kinda have an idea of what I'm doing. And for me, I'd generally prefer NOT to recruit.

However, my preferences are NOT for everyone. Every place has its positives and negatives.

Your job is to determine where YOU best fit and to make the most of it. From there... it's all trial and error anyway.

Big tip: Never compare companies. Companies don't necessarily matter (for the selling organizations). There are top producers everywhere.

What does matter: Your agency and your training. That's #1. If you have that, almost nothing else matters. If you don't have that... nothing else matters. You can have a 150% contract... but if you can't sell the products to get paid on it, it's worthless.

FFL & Benzy seemed the most appealing to me. One of the guys that I talked to, I'm not sure which one but I assume it was Benzy said he had also sold life in the past so he could help me write those on the side if I wanted to learn. One of them also said that one of the owners generates the leads and would sell them to us, they only sell leads in $250 batches I believe? I can't really remember but I think that was Benzy as well.

I have 0 desire to build teams, probably ever.

I desire tried and true training, something turnkey, to streamline my experience while I learn the technical details of the industry that I need to be self-sufficient with or without the company.

In my post above, I discuss career agent, independent agent, and team building.

Lead Costs: Generally speaking, most team-building organizations have their own in-house lead programs that agents pay for. This may be where you're getting your figures on how much to spend on leads.

Revenues: You'd like to eventually earn $400k a year. (Let's assume that you're not building a team.)

You can do that in many ways:

• 400 policies where you earn $1,000 a piece
• 40 policies where you earn $10,000 a piece
• 20 policies where you earn $20,000 a piece
• 10 policies where you earn $40,000 a piece
• 4 policies where you earn $100,000 a piece

I'm just trying to get you thinking here. It's all possible.

The real question is: who do you want to serve and how? That may be a future question to ask after you get started somewhere and you get to see what's really possible out there.

Problem solvers earn far more per sale than product peddlers.

If you watched my monopoly guide video in the other (hijacked) thread, you'd see that there are many different markets and many ways to serve those markets.

Generally speaking, the higher the per-ticket commission, the higher your specialized knowledge will have to be. And the opposite is true for the lower commissioned policies.



Based on this knowledge, what would you really like to do?
Who do you want to serve?
How do you want to help them?

Again, that may be a future question to ask as you get started and learn more in the industry.

I guess my big question I still want to know is how realistic is it that I start earning enough to put $1000 in my pocket every week after business expenses and taxes in less than 2 months? Is that possible? Is it reasonable? Should it be a stretch goal? Is there something more reasonable to expect if I was working the hours I mentioned in my original post?

I just need to have some realistic expectations financially outside of what these companies are telling me to expect from working with them.

 

[DHK]

I guess my big question I still want to know is how realistic is it that I start earning enough to put $1000 in my pocket every month after business expenses and taxes in less than 2 months? Is that possible? Is it reasonable? Should it be a stretch goal? Is there something more reasonable to expect if I was working the hours I mentioned in my original post?

I just need to have some realistic expectations financially outside of what these companies are telling me to expect from working with them.

First, let's look at what an average sale can look like on the low end.

If the average mortgage protection sale is $50 a month or $600 a year premium... let's add some other factors to that:

• Commissions advanced (9 months) or as earned: Most companies will allow you to be paid in advance of all the premiums being collected. However, they won't advance you all 12 months, so they usually advance 75% or 9 months up front.
  • $600 x 75% = $450
  • Note that if you take your commissions "as earned", you'll only be paid as premiums are paid to the company. No advanced commissions... which might suck for cash flow, but can be great to help offset commission charge-back risks. (Remember that if you're advanced a commission, and the client cancels, you owe the remaining months of commissions back based on unpaid premiums.)

• What is your commission percentage on that business? I have no idea what most organizations will pay you to do the job. Let's just pick a number: 50%. (If you're at a true independent shop, this number should be at least 80%. Mortgage protection is often 100%. Final expense is often 120%.)
  • $450 x 50% = $225 in your pocket (gross)

Now, how many sales do you need to NET $1,000?

If each sale = $225... add up your lead cost and add in 5 more policy sales to net your $1,000.

If you're spending $200 - $1,000 a week on their lead program... that can get costly compared to your net earnings. But that also depends on how many appointments you're setting and how well you're closing that business.

Now that we figured out the math... the question then becomes... can it be done and can YOU do it with the resources and training provided?

Too many factors in that for me to answer conclusively.

 

[jdeasy]

I had another thread going but it got highjacked by a debate not relevant to the thread.

At one point someone asked what I was looking for in a company and my financial goals. So here they are in detail.

From the company:

I'm looking to learn to sell insurance with hands-on guidance. I have previous sales experience from my own consulting to technology services to products to other stuff.

Culture is vital to me, I'm pretty great at identifying good culture, but I really need to know exactly what I need to look for in order to not get trapped or shoot myself in the foot if I join the wrong team and need to switch.

I would also like to know if working with multiple companies is a good or bad idea just starting out, and if it isn't an easy answer then why is it good or bad so I can discern for myself.

I would like to be doing this 8-12 hours a day 4-6 days a week.

Financial Goals:

I would like to spend about 200-1000 a week on leads as long as I can at least double my investment reliably to come ahead on average 11 out of 12 months out of the year.

I would ultimately like to get to a point where I can make 400k a year from issued policies

I would be through the moon to hit 220k a year and content if I never ended up making more than that a year from then on for whatever reason

I would like to make 120k after business expenses (leads, etc) in less than 2 years

It is vital that I make over 70k within my first year and can put at least 70% of that in my pocket.

Some companies that have reached out to me that I've been talking to are:

Marathon VDH

FFL

US Health

I am in Tampa FL and would prefer to sell Hybrid Remote with in-office being fully optional.

Full remote would be my next choice.

And I do understand Life Insurance better than Health Insurance but have no preference as to which I sell as of right now.

I am open to other brokers to work for that might be a better fit for me.

What part of the insurance industry do you want to be in? If for FE there's different recommendations than for MP or annuity sales.

Also if you are opposed to face to face it's a different recommendation.

The sad part of asking for advice at these forums is that you will rarely get advice from actual producers. You will hear from desk jockeys and insurance groupies.

 

[goillini52]

Benzy???

 

[JaceG]

Now, how many sales do you need to NET $1,000?

If each sale = $225... add up your lead cost and add in 5 more policy sales to net your $1,000.

If you're spending $200 - $1,000 a week on their lead program... that can get costly compared to your net earnings. But that also depends on how many appointments you're setting and how well you're closing that business.

Now that we figured out the math... the question then becomes... can it be done and can YOU do it with the resources and training provided?

Too many factors in that for me to answer conclusively.

This pretty much sounds just like the people who are trying to get me to join their team. This is good, because it means they aren't trying to sell me since you're not trying to sell me and you are saying the exact same thing.

I'm ok if it mostly depends on me, but many companies say that and you realize it would be easier to make money selling ice to Eskimos than working with them.

 

[Jccwell]

FFL & Benzy seemed the most appealing to me. One of the guys that I talked to, I'm not sure which one but I assume it was Benzy said he had also sold life in the past so he could help me write those on the side if I wanted to learn. One of them also said that one of the owners generates the leads and would sell them to us, they only sell leads in $250 batches I believe? I can't really remember but I think that was Benzy as well.

I have 0 desire to build teams, probably ever.

I desire tried and true training, something turnkey, to streamline my experience while I learn the technical details of the industry that I need to be self-sufficient with or without the company.



I guess my big question I still want to know is how realistic is it that I start earning enough to put $1000 in my pocket every month after business expenses and taxes in less than 2 months? Is that possible? Is it reasonable? Should it be a stretch goal? Is there something more reasonable to expect if I was working the hours I mentioned in my original post?

I just need to have some realistic expectations financially outside of what these companies are telling me to expect from working with them.

Very possible and reasonable. You'll need decent leads, along with a solid script and sales process.

Assuming you're looking at FE, your best chance at success is by buying leads, getting in the field, and going to work.

 

[JaceG]

FE

Could you please spell out this acronym?