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You're right it's hard to generate much profit on an 80% contract with lead costs of $40 or more. All SL agents start at a minimum of 90%. If an agent issues $5k in a one month period then the agent promotes themself to 95%, and once an agent issues $10k in a one month period then the agent promotes themself to a 100% contract.Greg we both know there isn’t any agent netting squat on a 80-90% contract paying $40 plus a direct mail lead after chargebacks . Especially with sl’s very expensive product which you can’t replace much . Many people that answer direct mail leads have a plan already. You need competitive products to replace it .This scenario says it all about telesales fe . Agent5 on here who’s been a 100% recruiter for fe telesales the last 4 yrs . He had an agent that he always showed on the leader board month in month out doing $30-$40 k every month . This agent was at 110-125% comp . He was bragging on facebook groups for a yr how he was writing 40-60 apps every month . Agent 5’s video’s showing the leader board backed it up . Then all of a sudden 4 months ago he makes a 100% u turn and goes 100% into telesales medicare advantage . Why would a guy going that type vol all of a sudden u turn to medicare that takes yrs to establish big money ? It’s because he most likely after lead cost and massive chargebacks was netting peanuts . But he’s fixing to get the shock of his life slinging dsnp’s in multiple states on the phone . He’ll be lucky if 50-60% of the plans he writes go active 1-1-25
Most can start at 95% or 100% with a little proof of production. Or more than 100% if they have a team of agents. Contract levels are determined by production which keeps the upline from holding an agent back.
We don't do much replacing, more about adding on to what they already have in place, especially adding Legacy savings for the family. Full time telesales agents usually enjoy a $35k to $75k tax deduction their lead investment.
When finding out the prospect's "why" they usually say:
_to get another policy because their other policy has lapsed because of a financial matter that came up
_to add more coverage to what they took out years ago (good persistency payors)
Rarely have I ever heard the lead say they answered the ad ((DM, TV, or FB) to see if they could find somehing cheaper. I've heard that but not very often.
When you sit back and think about, investing in FE leads yields a better return than investing in stocks, 401's, etc. You receive a positve 2x to 4x return on your lead investment, usually with 1-2 weeks, and the investent price is tax deductible on top of that. Where else can a person get 2-4x their investment back in less than 2 weeks? If Warren buffet knew this he'd probably become a FE agent...lol.
As far as the guy you mention that went from FE telesales to Med Advantage telesales you'll have to ask him.