Tried contracting an agent recently and came back he had a vector hit. The company reporting the vector debt had a lead finance system. I did not realize that a company could report a lead debt to Vector. I actually thought it could only be commission related. Does anyone know the ins and outs of what you're supposed to be able to report or not?
Lead Debt
- Thread starter lsalmans
- Start date
- 4,872
That agent received a set of leads on credit, did not even write enough biz to pay for his lead costs, and then apparently makes no effort to pay the lead debt.
Why would you want to waste your time on a loser? Your time is much more valueable than that. Remember, time is $$$ in this biz.
Honestly, I think the whole vector thing is getting out of control. It used to be used only for "unrecoverable debit balances" although these days it seems they place you in there for anything. I have even heard that active agents are now getting placed on there as well.
It seems vector one will just place anyone on there that a participating member wants........
They are also trialling "Persistency Check" now as well. Soon your persistency numbers will be posted as well.........
- Thread starter
- #4
I would agree with you to an extent. Its all case by case. This particular agent was on 65% overall with 75% advance. with a third of the check being withheld for lead debt at a $25 per lead price. You cannot write enough business to pay this debt off. and As he worked and worked the lead debt grew and grew. Thats what its designed to do though. That lead debt makes it to where he cant afford to leave, it hamstrings him. To some degree this company maybe has ruined this kids insurance career, because he didnt know any better. He didnt even know there was a vector. So now we have a sharp young kid whose career is done because hes got this debt, all because a bunch of managers wanted to rip huge overrides.
In my opinion. There is a reason the managers are keeping huge overrides, its to help pay the debt for when the kid inevitably leaves because hes not making money. But then to pin it on the kid even after he leaves. c'mon
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I couldn't agree with you more. Vector is becoming less of an impartial monitoring and reporting agency and more of an advocate for insurance companies. I have seen people reported to Vector for debts they had proof were false and the insurance company still refused to remove it and Vector wouldn't remove it without the insurance company's go ahead.
- 15,041
I wonder how long until someone goes after Vector. It sounds rather like a credit rating agency, and should be subject to the same rules. I have a strong feeling they have run afoul of the Fair Credit Reporting Act.
- 2,455
What minimum contract percentage would he or anyone else realistically need to be with $25 lead prices so as to jot get caught in a mess like this?
I'm just trying to understand this but are you saying it can't be done by anyone at those levels and lead prices? Is it flat out impossible?
I know an FMO that places anyone and everyone on vector. Real shitsters.
They aggregate your debit balances and report you as soon as its over $400. So if you had 5 carriers with a $100 debit balance each, they would report you, no questions asked!
It's unbelievable just how easy it is to put someone on there.....
They aggregate your debit balances and report you as soon as its over $400. So if you had 5 carriers with a $100 debit balance each, they would report you, no questions asked!
It's unbelievable just how easy it is to put someone on there.....
- Thread starter
- #9
Yes. Its nearly impossible. So lets say in your first month you run a 100 leads. Your lead debt is $2500. On average you sell a $1000 AP per 10 leads. The 65% overall on this is $6500. With a advance 75% leaving you a gross check of $4875 before lead costs. They would then withhold a third of your check to go towards your lead balance. So $1608 go towards your lead debt. Your net check = $3217 This leaves you about a $900 lead debt that rolls to the next month. Managers tells you you're hitting your numbers and if you keep working the lead debt will take care of itself.
Then you have an off month, with some charge backs and 8-9 months later you're frustrated and only making $3000 a month. You look for a different path and you now have an $8000 lead debt.
With a 100% overall contract for example, more of your check could go towards your lead debt instead of your managers pockets, the lead debt would then be much much lower, if not 0.
I'm worked up, I feel bad for the kid. Because he is truly stuck.
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I dont know if you're joking or not, but everyone uses vector
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- 4,872
You're right, 65% comm. and paying $25 per lead won't keep an agent on board very long, unless there are a lot of free follow-up leads thrown into the mix.
If you are not able to contract that agent,and he/she is in eastern NC let me know.
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