How Much?

[NSRH]

While I might agree with you on this particular agent going captive, it shouldn't be a steadfast rule. I mean, you don't know anything about this agent and his experience. He might do just fine without being captive. That's something that should be examined before we make a blanket statement.

He asked for a realistic expectation.

The reality is, most independent final expense agents run out of business, or change their line of sales. Those that make it (even past 12 months) selling FE are the exception and not the rule.

 

[Todd King]

He asked for a realistic expectation.

The reality is, most independent final expense agents run out of business, or change their line of sales. Those that make it (even past 12 months) selling FE are the exception and not the rule.

Sure, you can assume the averages and just say the agent will most likely fail and you would be right 90% of the time. I would rather treat them as an individual with individual experiences and find out who they are and what they already bring to the table (if anything) instead of assuming they are just another failure waiting to happen.

Once again, blanket statements might be correct most of the time....but not always.

 

[NSRH]

Sure, you can assume the averages and just say the agent will most likely fail and you would be right 90% of the time. I would rather treat them as an individual with individual experiences and find out who they are and what they already bring to the table (if anything) instead of assuming they are just another failure waiting to happen.

Once again, blanket statements might be correct most of the time....but not always.

Frankly, the turn over rate is less a reflection on the agents, and more on the industry. We have the same success rates as any MLM company, and its because thats pretty much what the FE industry has turned into.

 

[Newby]

Some bad advice is coming through on this thread...

Number one... New York agents dont have to take a reduced comp. There are a number of New York agents who do well selling final expense over the phone in other states.

Number two... commission levels have very little to do with a new agents success. I firmly believe that new agents should start at a captive shop first (take a reduced commission for free leads) and learn the ropes.

Number three... following a proven system trumps everything else. Its more important than leads, commissions, or training. Now, those three things are part of a system, but successful agents follow a proven system.

I understand that this these views are unpopular on this forum, because all the marketers here sell leads to independent agents. Thats not a bad thing, and alot of independent agents make alot of money. However, alot of those independent agents started off with "free leads" to get into the industry.

I don't see where you are saying anything "unpopular" on the forum other than that "commisssion levels have very little to do with a new agent's success." Commission levels have a huge importance in any agent's bottom line and especially new agents when they haven't yet built up additional cash flow from pay throughs and renewals.

But a proven system is exactly what every new agent needs to make his chances of success much greater than average.

 

[Newby]

He asked for a realistic expectation.

The reality is, most independent final expense agents run out of business, or change their line of sales. Those that make it (even past 12 months) selling FE are the exception and not the rule.

What data are you basing this on?

 

[NSRH]

I don't see where you are saying anything "unpopular" on the forum other than that "commisssion levels have very little to do with a new agent's success." Commission levels have a huge importance in any agent's bottom line and especially new agents when they haven't yet built up additional cash flow from pay throughs and renewals.

But a proven system is exactly what every new agent needs to make his chances of success much greater than average.

So KSKJ pays some of the highest commissions in the industry? Thats your number one carrier right?

 

[NSRH]

What data are you basing this on?

Are you disputing that most FE agents fail out of the business?

 

[goillini52]

What data are you basing this on?

WikiLeaks.

 

[Brandon242424]

Lol, alot of good information here. We have Columbian Life and Foresters. I would lean towards Foresters. It's surprising that the failure rate is that high.

 

[Newby]

So KSKJ pays some of the highest commissions in the industry? Thats your number one carrier right?

NSRH, you are a man of many assumptions. Usually incorrect. Not sure where you are seeing "highest commissions in the industry". Also KSKJ is not our number one. They would likely be if they were in more states. Our business is a nice mix between quite a few companies. We were the #1 IMO's in the nation last year with Oxford and KSKJ which have starting levels of 120% and 100%. But those two combined are only around 25% of our sales volume.

Our agents sell a group of companies. The commissions range from 100% to 125% for ALL 1st day on the job agents. They select the company to sell based on health conditions, underwriting and competiveness of the rates as well as commission level. It's the agent's choice. Not all of our agents choose the same companies.

But even KSKJ at 100% is higher than many agencies have their agents selling far higher priced companies and making only 100% or often less. There is a reason that many agencies don't post their starting level commission grids so that agents can easily see them. And there are numerous stories where agents are not allowed to compare commission levels with other new agents within the agency. They get different commission levels based on how much they educated themselves before contracting. Not good for the agents.

That is the whole point. Agents have a better chance of making with high starting commission levels than they do with lower levels. I'm not sure how this could ever be incorrect. Assuming they have good training, leads and a proven system.