Is the old school way of insurance sales- gone forever?

[Allen Trent]

I would say most agents today have no idea what a Polk Directory is.

Yeah, the current generation thinks I am asking about their hit list of 1 night stands when I bring up going through their Poke directory

 

[DonP]

Final expense uplines are basically MLM agencies. They want agents to dial,knock doors,whatever so they can get an override. Those who operate these agencies would never do either. They look for the monkeys who will drink their kool aide. They have zero interest in getting out there and meeting people or dialing all day long,probably don't know how either. However ,you must get contracted so might as well play along. They serve a purpose.


F2F street agents do this job because they have a natural interest meeting people,helping them obtain suitable coverage. Many have been in their careers 20,30 + years because they built something with a vision and their longevity proves it.
Our clients have a natural desire to meet with us and buy from us and that's not going away.

Big difference is the generation of young people(under 35) who if they could,they wouldn't work at all. Just be a stay at home dad or live in momma's basement. As long as they have a place to stay,a few cigarettes or a vape and can pick up a few bucks they're good.

Perfect candidate for telesales.

Me ? I'd start a fruit stand in Nicaragua before I I sold any over the phone or a computer.

Correct insurance sales is the ultimate mlm of all sales . The IMO's/fmo's are under Nmo's . Everyone's under somebody . The Nmo is happy to make 5% on the fmo as its basically risk free as the fmo cushions most if not all roll up debt if in the rariest instance it gets to him. The only difference in the insurance mlm structure is a great % of people actually sell the products . Most every business is an overriding structure . If I'm a paint contractor or own a subway you're making money of Your $12-$25 an hr employees . The Hospital makes money off the doctor . Thats why it's the agents job to narrow the override as much as possible if you're a risk free producing agent . I would say overall roll up debt is as great as ever in the ins field as more new agents than ever are entering . A great % of those agents will not make it an exit the business . Naturally some of those policy's will fall off . Few of the agents will pay it back if they've exited the business .

 

[jdeasy]

Correct insurance sales is the ultimate mlm of all sales . The IMO's/fmo's are under Nmo's . Everyone's under somebody . The Nmo is happy to make 5% on the fmo as its basically risk free as the fmo cushions most if not all roll up debt if in the rariest instance it gets to him. The only difference in the insurance mlm structure is a great % of people actually sell the products . Most every business is an overriding structure . If I'm a paint contractor or own a subway you're making money of Your $12-$25 an hr employees . The Hospital makes money off the doctor . Thats why it's the agents job to narrow the override as much as possible if you're a risk free producing agent . I would say overall roll up debt is as great as ever in the ins field as more new agents than ever are entering . A great % of those agents will not make it an exit the business . Naturally some of those policy's will fall off . Few of the agents will pay it back if they've exited the business .

Only reason the IMO system exists is to shield the companies from chargeback debt.

And to farm out the hiring process.

There's 200% commission and fees in every policy sold.

The agent needs to get as much of that 200% as possible.

But the IMO has to make money too. They aren't in business for sport.

I want FEX to make money so they stay in business.

It is a true partnership or it will fail.

 

[noah]

Correct insurance sales is the ultimate mlm of all sales . The IMO's/fmo's are under Nmo's . Everyone's under somebody . The Nmo is happy to make 5% on the fmo as its basically risk free as the fmo cushions most if not all roll up debt if in the rariest instance it gets to him. The only difference in the insurance mlm structure is a great % of people actually sell the products . Most every business is an overriding structure . If I'm a paint contractor or own a subway you're making money of Your $12-$25 an hr employees . The Hospital makes money off the doctor . Thats why it's the agents job to narrow the override as much as possible if you're a risk free producing agent . I would say overall roll up debt is as great as ever in the ins field as more new agents than ever are entering . A great % of those agents will not make it an exit the business . Naturally some of those policy's will fall off . Few of the agents will pay it back if they've exited the business .

The IMO's pitching telesales have a lot in common with someone unwilling to get into F2F final expense.

They both have a high interest in selling insurance without any concern about ever meeting their customer in person. Do you noticed the IMO's and agents in the telesales marketplace only talk numbers ? How much? Volume….etc…

How come they never talk about the mission of helping clients find a suitable product that's affordable?

What can a telesales agent learn about a client,the beneficiary,the client's overall situation over a telephone?

Do you really think the business is done the right way without meeting the client,performing a professionally risk assessment?

There's a reason why there's a box to check on an FE app and Covid did not change that.

 

[DonP]

The IMO's pitching telesales have a lot in common with someone unwilling to get into F2F final expense.

They both have a high interest in selling insurance without any concern about ever meeting their customer in person. Do you noticed the IMO's and agents in the telesales marketplace only talk numbers ? How much? Volume….etc…

How come they never talk about the mission of helping clients find a suitable product that's affordable?

What can a telesales agent learn about a client,the beneficiary,the client's overall situation over a telephone?

Do you really think the business is done the right way without meeting the client,performing a professionally risk assessment?

There's a reason why there's a box to check on an FE app and Covid did not change that.

Because when your doing telesales its about a lot of leads and its a transactional sale . It's a #'s game . There's no question when you sell transactionally your persistency will be much lower. I bet i replace 20-30 Call center Medicare plans a month . As far as i can tell not one of these outfits came back to save the plan they wrote ( there could be a few over the yrs but it would be less than 5) . They sell shotgun style much like any high vol telesales . You can build a true relationship . Now because of the immense advantage in vol selling over the phone with 100's of leads a week their willing to take that lower persistency being offset by potentially higher sales

 

[DonP]

Only reason the IMO system exists is to shield the companies from chargeback debt.

And to farm out the hiring process.

There's 200% commission and fees in every policy sold.

The agent needs to get as much of that 200% as possible.

But the IMO has to make money too. They aren't in business for sport.

I want FEX to make money so they stay in business.

It is a true partnership or it will fail.

No question . They want the fmo to take the chargeback risk off the table and to manage and train the agents . In the old days that had w-2 regionals on the ground that fielded agent questions and trained them . But the carrier still had charge back risk .

 

[jdeasy]

No question . They want the fmo to take the chargeback risk off the table and to manage and train the agents . In the old days that had w-2 regionals on the ground that fielded agent questions and trained them . But the carrier still had charge back risk .

Completely about volume for the IMO.

If a telemarketer writes $200K and has 70% persistency they still make their override on $140K.

Doesn't matter to them if that agent spent $100K on leads to write the $200K.

 

[DonP]

Completely about volume for the IMO.

If a telemarketer writes $200K and has 70% persistency they still make their override on $140K.

Doesn't matter to them if that agent spent $100K on leads to write the $200K.

It's always been that way . I remember some of the old posters on here buying 80 leads a week boasting doing $300 k . After chargebacks and lead costs they were netting piddly amounts for the crazy long hrs they worked . That's why for many yrs when talking I put NET in capital letters . I'm spoken about the upline only caring about gross vol 100 times . It's the agents job to understand what's best for him and his profit margins . That's why I never cared about how much business someone does . Show me what you net in your bank account before taxes and after near costs at yr end

 

[jdeasy]

It's always been that way . I remember some of the old posters on here buying 80 leads a week boasting doing $300 k . After chargebacks and lead costs they were netting piddly amounts for the crazy long hrs they worked . That's why for many yrs when talking I put NET in capital letters . I'm spoken about the upline only caring about gross vol 100 times . It's the agents job to understand what's best for him and his profit margins . That's why I never cared about how much business someone does . Show me what you net in your bank account before taxes and after near costs at yr end

Yeah. There was one guy saying he got 70 leads per week, had an appointment setter and only writing $300K per year.

And admitted to 70% persistency.

 

[noah]

All I hear is talk about money……Hey Don,ask some of the IMO's,middlemen who post here to post their contract levels,what they receive from carriers.

You believe what they say here,right?

lol