If not the NAA - who is a decent Life products IMO?

[nevada]

Don't want to be negative so I like to give scenarios that make you think. Then you can make an informed decision as to what works best for you. If you are contracted at 55% and you also have to buy leads, pay for gas and wear and tear on your vehicle, lets take a look and see what this looks like financially. You write 1,000 in premium. You make $550(412.50 up front 55%, 75% of the 55.) Lets say you purchased 10 leads 20 bucks per lead. You made 2 sales for the 1,000 premium. Ok so you spent $200 and made $412.50($550 if it stays on the books for 12 months). That leaves $212.50 minus gas. Now lets say you went with an IMO that offered you a modest 80% contract. The difference is $250 per deal in this case $500. So you are really paying $700 for ten leads.The $500 you lost on a 55% contract instead of an 80% plus the $200 you paid for the leads. That equates to a whopping $70 per lead. Would it make more sense to take the higher contract and buy your own leads? Is a low contract a financial suicide mission?
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@biggityswat Presidential Life will no longer underwrite any life products after January 31st. They were recently purchased by Athene and will be focusing on annuities only.

 

[xrac]

Don't want to be negative so I like to give scenarios that make you think. Then you can make an informed decision as to what works best for you. If you are contracted at 55% and you also have to buy leads, pay for gas and wear and tear on your vehicle, lets take a look and see what this looks like financially. You write 1,000 in premium. You make $550(412.50 up front 55%, 75% of the 55.) Lets say you purchased 10 leads 20 bucks per lead. You made 2 sales for the 1,000 premium. Ok so you spent $200 and made $412.50($550 if it stays on the books for 12 months). That leaves $212.50 minus gas. Now lets say you went with an IMO that offered you a modest 80% contract. The difference is $250 per deal in this case $500. So you are really paying $700 for ten leads.The $500 you lost on a 55% contract instead of an 80% plus the $200 you paid for the leads. That equates to a whopping $70 per lead. Would it make more sense to take the higher contract and buy your own leads? Is a low contract a financial suicide mission?
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@biggityswat Presidential Life will no longer underwrite any life products after January 31st. They were recently purchased by Athene and will be focusing on annuities only.

This is an excellent evaluation of the cost of free leads even if the thread is 4 1/2 years old.

 

[nevada]

Oops, didnt realize the thread was that old. Sorry. I'm sure though that my post will help somebody. Folks are still out there 4 1/2 years later recruiting newbies and some veterans for 55% and 60 % and still expecting them to purchase their own leads.

 

[tnk]

If 55 or 60 commission you're saying leads must be free for it to be worthwhile? But otherwise get a higher commission and pay for your own leads?

 

[midwestbroker]

Higher commission and pay for your own leads.

The question is this, if you are no longer taking leads from them, can you bump your %? If the answer is yes, it maybe worth your while. If the answer is no, then walk, since every piece of business you write for that carrier will be reduced, and you have locked your contract at a VERY reduced rate for some past leads.

 

[nevada]

@tnk yes you are right. If you opt for the low contract, you should be getting free quality leads. Otherwise you will fair better financially if you take the higher contract and purchase your own leads.

 

[Judy716]

WhaT? Term policies dont pay renewals? Most of mine do. for at least 10years anyway. Transamerica/Life Investors have super rates/Good Commissions 95%/100%. We even have a neat lead program. 20free mortgage leads a week for 4 weeks. All free

No Im not a Primerica Agent, I just like the way their name looks.

I see that your post was done years ago, but interested me. I was a Transamerica agent for many years and loved this company. Due to a family illness, I haven't worked with insurance for a couple years, but am ready to go back to insurance work now.
Can you tell me what their lead program is now?