How Could A MLM Company Make Money With Insurance Products?

[The Rabbi]

I've had plenty of experience of MLMs and insurance is the only MLM where a person can make a good living without recruiting. I've seen very honest owners get hung by a hot shot distributor who goes out and misrepresents the program, just like any partnership can fail due to just one persons incompetence or greed. It's like a handshake means nothing anymore. I enrolled plenty of people who invested up to $800 in product and not only never left home plate, they wouldn't even return my calls. The trouble with MLM is it let's anyone in and the people think that it's easy, just pay the $35 fee and start raking in the money. It's the same with our business. I've recruited plenty who never write their first app. They go through the expense of getting a license and never make a move. My own wife gave up after her first appt was a no show.

All of this tells me that you will spend a lot of time putting it together and the members won't be able to afford it. The spending habits of Americans is changing from excess to saving and that's going to make it a lot harder to make money.

The last thing I want to do is discourage someone because I'm an entrepenuer, a die hard optimist but I've grown very wise over the years learning from the failures of others I've hooked up with to meet their part of the bargain.

I wish you the best of luck in making it work. Just keep in mind what I've experienced and take it slowly.

 

[Cornelius]

With MLM internal consumption plays a big part.

 

[Franz Kafka]

If you can't distinguish between MLM and insurance distributionship, you are very bad at math.

 

[Bertolinoins]

With MLM internal consumption plays a big part.

Exactly. High margins + internal consumption is the magic formula and that is why most insurance products do not fit the bill. Term life with Primerica being an exception but their model is extremely flawed as well.

 

[0b1kanobee]

I'm gonna let you guys in on a little secret since everyone seems to be thinking like a traditional MLM which I told you, this was not and then I'm gonna let it go because I already figured out how to do it (I think).

We aren't charging more for things which you would pay for anywhere else. Take for example these "juice company MLMs". They charge $30 bucks for a bottle of juice you take once a month. If you could go to the store and buy that SAME bottle of juice, it would probably cost $10.

However, as most of you have indicated, you need to feed the comp grid. Which you fail to realize is that most comp grids are geared to make the folks who get in early ALL THE MONEY.

This company takes that same bottle of juice and sells it for $10 just like the store. Hell it only took $5 to make it.

But lets get back to insurance. Why would anyone buy a life insurance policy from an mlm for more than what they could somewhere else. The answer is they wouldn't unless they are an *** or they have been promised they will make all this money one day soon (typical mlm BS).

Anyway, I'm talking about selling that same term policy for whatever the insurance company quotes it for. However, the consumer or associate (who buys the term plan) makes money/gets a discount/percentage goes into comp plan (otherwise known as an overall matrix).

How many people can say they bought some kind of insurance policy for what everyone else can only they made mopney from it somehow either through a matrix system (again comp plan) or discount or even money back directly deposited into their back office.

How many insurance agents do you think would be lined up to work at 50% comp for certain customers knowing they didn't have to do a darn thing to make that sell (known as prospecting). I know I would have no problem.

So there are many ways to get the revenue into the comp plan just like there is more than one way to skin a cat. Don't forget about the auto ship and the membership fee to be an independent distributor as well. With 50,000 associates at $65 per month auto ship (which includes back office, website and everything you need to open up shop and stay in business as an associate) that alone is $3,250,000.00 in revenue per month and that is just on the auto ship. We could put every other earned dollar (outside the auto ship) in the comp plan and associates would still make money.

I don't see too many flaws as of right now but I do see a lot of hurdles to jump over. Any feedback is welcomed. If this thing goes, I'll put an offer in the "offers section" for any agents who would be qualified to participate as they would be needed in every state. Right now I'm excited yet slightly discouraged because this would be no easy task.

 

[mynarky]

Primerica has a very smart pay structure that you can get very wealthy from. I don't like their products though. I use to be there but I know a lot of guys who made over 500k at pfs.

The smart guys who go wide and recruited a big base shop have financial stability that is amazing.

Yeah hacky products and pyramid style downlines really can pay off
- - - - - - - - - - - - - - - - - -

Life is short. Run an honest business. People who start MLMs go straight to hell (no purgatory). Everything about MLM is evil. It's a dishonest way to make a profit. Life is short.

This would be true if hell existed.

 

[DBKuhnke]

Oliver...You've got it figured out!!!

 

[The Rabbi]

Why does this sound like NAA?

 

[TwiLight]

I'm gonna let you guys in on a little secret since everyone seems to be thinking like a traditional MLM which I told you, this was not and then I'm gonna let it go because I already figured out how to do it (I think).

We aren't charging more for things which you would pay for anywhere else. Take for example these "juice company MLMs". They charge $30 bucks for a bottle of juice you take once a month. If you could go to the store and buy that SAME bottle of juice, it would probably cost $10.

However, as most of you have indicated, you need to feed the comp grid. Which you fail to realize is that most comp grids are geared to make the folks who get in early ALL THE MONEY.

This company takes that same bottle of juice and sells it for $10 just like the store. Hell it only took $5 to make it.

But lets get back to insurance. Why would anyone buy a life insurance policy from an mlm for more than what they could somewhere else. The answer is they wouldn't unless they are an *** or they have been promised they will make all this money one day soon (typical mlm BS).

Anyway, I'm talking about selling that same term policy for whatever the insurance company quotes it for. However, the consumer or associate (who buys the term plan) makes money/gets a discount/percentage goes into comp plan (otherwise known as an overall matrix).

How many people can say they bought some kind of insurance policy for what everyone else can only they made mopney from it somehow either through a matrix system (again comp plan) or discount or even money back directly deposited into their back office.

How many insurance agents do you think would be lined up to work at 50% comp for certain customers knowing they didn't have to do a darn thing to make that sell (known as prospecting). I know I would have no problem.

So there are many ways to get the revenue into the comp plan just like there is more than one way to skin a cat. Don't forget about the auto ship and the membership fee to be an independent distributor as well. With 50,000 associates at $65 per month auto ship (which includes back office, website and everything you need to open up shop and stay in business as an associate) that alone is $3,250,000.00 in revenue per month and that is just on the auto ship. We could put every other earned dollar (outside the auto ship) in the comp plan and associates would still make money.

I don't see too many flaws as of right now but I do see a lot of hurdles to jump over. Any feedback is welcomed. If this thing goes, I'll put an offer in the "offers section" for any agents who would be qualified to participate as they would be needed in every state. Right now I'm excited yet slightly discouraged because this would be no easy task.

Way too much thought is going into this....My head hurts.

 

[0b1kanobee]

Why does this sound like NAA?

I believe NAA recruited agents to sell insurance or something. These independent associates have no desire to sell insurance. They would like to be compensated for products they buy/recommend and they already have a good line of them. Insurance products would be another nice add on.

it is already being done with mobile phones, vitamins, ID theft, coupon book, prescription drugs and a couple of other things. Did NAA offer all that too?