I have been selling final expense for three years in nw Ohio averaging $5200 a month in AP. I get all of my leads from funeral homes, accountants, and two local insurance agents. I give them p&c leads and they give me their final expense leads. I have the opportunity to become a mga for Standard Life and Accident. With the contract I have from them I will be able to offer subagents a 100% contract with a free 1000 piece mailer (probably from lead concepts) for every $4000 in AP they do. The $4000 does carry over from month to month for them. After 9 months if they hit $8000 a month I will give them 4 free 1000 piece mailers. I am not responsible for their debt but I would of course have my portion of their chargebacks.What I want to know does this sound fair to the subagents and me for that matter. My contract is for 120% and SL and Accident will participate in lead costs. Thank you.
I Need Your Opinion on Recruiting
- Thread starter gravel
- Start date
- 19,648
I personally would not take that deal as a sub agent. But, it's not a terrible deal. many agents have a much lessor deal than what you are offering.
Are the agents captive to Standard Life? What kind of training and support can they expect from you?
- Thread starter
- #5
Todd and I both would start marketing for any company that dont roll up debit balances to the Upline.
I beat if you sign up someone and they end up with a $1000 debit, it will get roll up to you. If your name is on the contract as their upline.
- 26,136
Recruiting = Adult Day Care.
IMHO
IMHO
Yep, I did it for 2 years...now I just wish I was an IMO, they spend the time up front then you never hear from them...they collect the % and just offer contracts...
I am in the wrong part of the business.
- 495
The front end contract sounds good but what about the back end? That's how MGAs really make money.
Also double check about the debt. When an agents debt rolls up to me and I pay it off I get to keep their renewals if they are not vested. If your not paying the debt someone else is. And they are probably keeping the renewals for themselves.
The most important thing is this: none of this matters unless you have agents!!! I started as an MGA in November of last year and I have hired a lot of agents and it has cost me a ton of time and money. You have to be able to afford an agency. You literally might have to hire 100 agents just to get 10 and you will have to train every single one and hold their hand for the first 6 months. Whether they are experienced or not.
Also 1000 mailers might get you 10 leads maybe. So you are offering 10 free leads for every 4k they write. Not too impressive. Most agents write about 6k a month. You might have a few that can qualify for the 4 free drops.
Remember.... recruit recruit recruit!!!!!!! Don't forget to check on your back end spread its the most important thing for an MGA.
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