I Need Your Opinion on Recruiting
- Thread starter gravel
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- #22
Sl pays for the mailers for every $4k in A.P. If an agents hits $8k in a month I will also but them 2 more mailers. I am responsible for chargebacks (for an active agent)but not responsible if the agent leaves. That is my understanding. If I find this not to be true I simply wont do it. Does anyone have any actual experience being a mga with SL?
- 17,072
It's a great deal for you but not many agents who can sell would take that offer. Standard Life is not a real competitive FE company. Giving up 15% of their commission is $150 per 1,000 or the same as them paying $600 for you "free" FE lead drops.
If an agent is going to limit himself by running leads for a specific company, that company better have very competitive underwriting and rates or the agent is going to be very frustrated.
If an agent is going to limit himself by running leads for a specific company, that company better have very competitive underwriting and rates or the agent is going to be very frustrated.
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- #24
I really am trying to be fair. That is why I wanted everyone's opinion. My philosophy is that everyone should make money or it just wont work. I can change whatever I need to make it more profitable for the agent. I would be willing to offer contracts to Settlers, Motorists and RNA to the RIGHT agents, but no lead program through them. Thanks for all the input I am getting.
- 17,072
gravel said:
I don't mean to be too negative. There are always agents looking for subsidized leads. So it may be attractive.
Agent leaves doesn't mean much, they are not captive. You need to get it in writing that you are not responsible for agent Debt!...an agent doesn't leave per say..they just leave a vector one hit for a debit balance where you have to go after him when he doesn't pay or its rolled up to you....if SL is willing to offer that, I may consider a deal like that here in FL...problem is SL doens't have that great of a FE product..not even in the top 10 down here.
G
Guest
Guest
Similar company, similar situation. (Don't ask)
I DO mean to be negative. 1000 mailed, 3 leads all uninsurable.
Plus the "subsidized" lead cost is showing up on some cryptic form (can't make sense out of insurance company reports) so I assume I have to at least pay tax on that "subsidized" cost.
Whatever.
I get my own leads alot easier and closing ratio is 100% higher.
I DO mean to be negative. 1000 mailed, 3 leads all uninsurable.
Plus the "subsidized" lead cost is showing up on some cryptic form (can't make sense out of insurance company reports) so I assume I have to at least pay tax on that "subsidized" cost.
Whatever.
I get my own leads alot easier and closing ratio is 100% higher.
gravel: If you want to build an MGA agency with SL, it can be done. But you are going to have to offer some reason other than a 100% contract to be successful at it. Agents can get that anywhere.
Back in the dark ages, I recruited. But, in addition to the contract, I offered joint field work, office support, contests, awards, etc. The ones that just signed a contract and didn't take advantage of the other items seldom ever produced anything.
The real problem I see with the SL&A contract you are talking about is there is not a large enough renewal base to make it profitable. If you give the grant vested renewals, and I wouldn't sign a contract without them, there will be no renewal overwrite left for you.
If SL&A is not going to roll up the debit balances to you, they sure have changed from what they used to do.
Back in the dark ages, I recruited. But, in addition to the contract, I offered joint field work, office support, contests, awards, etc. The ones that just signed a contract and didn't take advantage of the other items seldom ever produced anything.
The real problem I see with the SL&A contract you are talking about is there is not a large enough renewal base to make it profitable. If you give the grant vested renewals, and I wouldn't sign a contract without them, there will be no renewal overwrite left for you.
If SL&A is not going to roll up the debit balances to you, they sure have changed from what they used to do.
- 495
Its probably not the company that is covering the debt. Its his direct upline.
Think about this: what is the back end spread for your agents? How long until they are vested?
If you have an agent that works with you for 2 years. He writes 100,000 a year. That's 200k. Let's say he gets 10% on the back end. If he quits and is not yet vested who gets the 20k in his renewal account. Usually the upline gets it when they repay his debt balance or his accounts clear.
If someone is paying the debt then they are most likely keeping the accounts.
This is important because most agents will not make it and all the biz they wrote has to go to someone.
I would offer the same deal to an up and coming manager also. I would just pay the debt myself and keep the accounts. It would be worth it if you could afford it and their renewals were high.
At 4% on the back end and 20% on the front your agency would have to write 100k a month for you to make a profit. Its taken me a whole year to get even close to 100k. Not to mention over 50k in training, incentives, lead losses, and office expenses.
If you can afford it you can make a ridiculous amount of money as an MGA. But its a snowball. You will most likely file for a loss your first year.
Just hang in there bust your ass all year and you can make it work.
Think about this: what is the back end spread for your agents? How long until they are vested?
If you have an agent that works with you for 2 years. He writes 100,000 a year. That's 200k. Let's say he gets 10% on the back end. If he quits and is not yet vested who gets the 20k in his renewal account. Usually the upline gets it when they repay his debt balance or his accounts clear.
If someone is paying the debt then they are most likely keeping the accounts.
This is important because most agents will not make it and all the biz they wrote has to go to someone.
I would offer the same deal to an up and coming manager also. I would just pay the debt myself and keep the accounts. It would be worth it if you could afford it and their renewals were high.
At 4% on the back end and 20% on the front your agency would have to write 100k a month for you to make a profit. Its taken me a whole year to get even close to 100k. Not to mention over 50k in training, incentives, lead losses, and office expenses.
If you can afford it you can make a ridiculous amount of money as an MGA. But its a snowball. You will most likely file for a loss your first year.
Just hang in there bust your ass all year and you can make it work.
- 4,872
How do you come up with these figures being needed to make a profit?
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