Let's talk releases!

[Joe Moore]

NO feedback on the thread Joe?

Yeah, just been composing an answer.

Getting late, going to bed now. I did not realize I had talked to you, please identify yourself when you call, or did I call you?

Goodnight.

 

[senior-advisor-indiana]

I called you and told you that I heard about you from Scott. You sent Scott my contract.

 

[Joe Moore]

I called you and told you that I heard about you from Scott. You sent Scott my contract.

OK now I remember, I think you talked to Greg, and he told me about it. Thought I may be getting more senile.

Thanks
Joe

 

[MedSuppPro]

Our e-mailing machine is running right now notifying all our contracted agents, and prospective agents that we have e-mail addresses, of a delay of the "New Vista" Shenandoah Final Expense product, that could be the premier final expense product in the industry.

What the hell is an e-mailing machine?

​

senior-advisor-indiana,

I'm glad your not so easily fooled by a "premier" MO whom owns an e-mailing machine. The bottom line is that Joe will not release you unless he feels you should be released when he is good and ready to release you. Why chance it?

 

[GreenSky]

The bottom line is that Joe will not release you unless he feels you should be released when he is good and ready to release you. Why chance it?

So you know how you make certain you get a release. Have a pre-nup signed guaranteeing it.

Problem solved. No pre-nup; no contracting.

Rick

 

[theinuranceguy]

What the hell is an e-mailing machine?

​

senior-advisor-indiana,

I'm glad your not so easily fooled by a "premier" MO whom owns an e-mailing machine. The bottom line is that Joe will not release you unless he feels you should be released when he is good and ready to release you. Why chance it?

I call my e-mail machine a computer.

 

[Joe Moore]

Let's try to look at the releases from the perspective of bringing in the local players:

ZYX Insurance Co. has a potential hot new product. ZYX has decided with actuarial help they can offer agents directly 100% contracts. Their costs to get to the agents is 40% marketing costs, with home-office recruiters, advertising, travel, employee benefits, etc. So, with this scenario their out-of-pocket cost is 140% of the 1st year premium.

Some genius at the home office says we can cut this cost by 10% by giving the IMOs a 130% contract, and probably sell much more of this product than we could directly offer it to the agents. We also would not have to worry about benefits, retirement, etc. What a brilliant move by ZYX!

So ZYX contacts SAI, who is an IMO with plenty of available contacts to market this product. SAI says sure I can market this product through my agent list, and matter-of-fact I will spend $25,000 of my own money to promote this product.

1. SAI, the IMO spending much money recruiting, recruits
2. Retread at a 115% contract; Retread knows a lot of agents and recruits
3. Green Sky at a 110%; Green Sky knows and recruits
4. The Insurance Guy at 105%; The Insurance Guy knows
5. Newby and Newby gets a 100% contract.

Newby had never seen this product, and felt at the time a 100% commission was fine for it.

Newby has the lowest contract, but still it is what the company would have been able to pay him if they had the home-office doing their own marketing.

Let's assume Newby turns into a super-star, selling the fool out of this product. He starts screaming that he is the man at the bottom of the pack doing all the big numbers and everybody else is "making money off my back".

Are they? Sure, they are all trying to make a living by promoting products, and 15% or 5% may not even come close to their potential exposure to the risks.

Newby is unhappy with the set-up, so he contacts the home office and they send him back to his IMO, SAI to try to calm the situation.

Should SAI try to please Newby by cutting out the rest of his uplines? Does Newby deserve the 115% contract? I don't see how SAI could do this without making all his downline mad, and lose them all.

Should ZYX say, "Newby you are such a super star, we are going to give you an IMO contract", and cut out everybody above you.

If ZYX did this, this would be probably the last time SAI would trust them, or even deal with them.

If SAI did this to his downlines, it would be the last time any downlines would want anything to do with SAI. And the company would probably want to get involved to prevent this type of thing from happening again.

In this situation, which sometimes is somewhat typical in this business; I would like to know the opinions of the right way this situation should be handled.

I do not see there is a way to keep everyone happy. The blanket statement of "It is simple, releases any time, for any reason", is not always real simple.

 

[jdeasy]

Let's try to look at the releases from the perspective of bringing in the local players:

ZYX Insurance Co. has a potential hot new product. ZYX has decided with actuarial help they can offer agents directly 100% contracts. Their costs to get to the agents is 40% marketing costs, with home-office recruiters, advertising, travel, employee benefits, etc. So, with this scenario their out-of-pocket cost is 140% of the 1st year premium.

Some genius at the home office says we can cut this cost by 10% by giving the IMOs a 130% contract, and probably sell much more of this product than we could directly offer it to the agents. We also would not have to worry about benefits, retirement, etc. What a brilliant move by ZYX!

So ZYX contacts SAI, who is an IMO with plenty of available contacts to market this product. SAI says sure I can market this product through my agent list, and matter-of-fact I will spend $25,000 of my own money to promote this product.

1. SAI, the IMO spending much money recruiting, recruits
2. Retread at a 115% contract; Retread knows a lot of agents and recruits
3. Green Sky at a 110%; Green Sky knows and recruits
4. The Insurance Guy at 105%; The Insurance Guy knows
5. Newby and Newby gets a 100% contract.

Newby had never seen this product, and felt at the time a 100% commission was fine for it.

Newby has the lowest contract, but still it is what the company would have been able to pay him if they had the home-office doing their own marketing.

Let's assume Newby turns into a super-star, selling the fool out of this product. He starts screaming that he is the man at the bottom of the pack doing all the big numbers and everybody else is "making money off my back".

Are they? Sure, they are all trying to make a living by promoting products, and 15% or 5% may not even come close to their potential exposure to the risks.

Newby is unhappy with the set-up, so he contacts the home office and they send him back to his IMO, SAI to try to calm the situation.

Should SAI try to please Newby by cutting out the rest of his uplines? Does Newby deserve the 115% contract? I don't see how SAI could do this without making all his downline mad, and lose them all.

Should ZYX say, "Newby you are such a super star, we are going to give you an IMO contract", and cut out everybody above you.

If ZYX did this, this would be probably the last time SAI would trust them, or even deal with them.

If SAI did this to his downlines, it would be the last time any downlines would want anything to do with SAI. And the company would probably want to get involved to prevent this type of thing from happening again.

In this situation, which sometimes is somewhat typical in this business; I would like to know the opinions of the right way this situation should be handled.

I do not see there is a way to keep everyone happy. The blanket statement of "It is simple, releases any time, for any reason", is not always real simple.

Yes, it is simple. In your example, you still expect that SAI owns Newby. If Newby is unhappy with the situation and wants more, he should get more or be allowed to go where he can get more.

Besides, there's no way in hell that the FMO spent 40% in marketing costs. Nor is the IMO going to $25,000 of his own money.

You are continuing to crate smokescreens to try and justify your own greed in regard to releasing agents.

Again, you are not winning converts here. You are just strenthening the resolve as to why agents should not work for you.

 

[senior-advisor-indiana]

It is very simple. If Newby wants a release he should get it from the Insurance Guy not SAI. Newby nmight be a captive agent with the insurance guy.

 

[Newby]

Let's try to look at the releases from the perspective of bringing in the local players:

ZYX Insurance Co. has a potential hot new product. ZYX has decided with actuarial help they can offer agents directly 100% contracts. Their costs to get to the agents is 40% marketing costs, with home-office recruiters, advertising, travel, employee benefits, etc. So, with this scenario their out-of-pocket cost is 140% of the 1st year premium.

Some genius at the home office says we can cut this cost by 10% by giving the IMOs a 130% contract, and probably sell much more of this product than we could directly offer it to the agents. We also would not have to worry about benefits, retirement, etc. What a brilliant move by ZYX!

So ZYX contacts SAI, who is an IMO with plenty of available contacts to market this product. SAI says sure I can market this product through my agent list, and matter-of-fact I will spend $25,000 of my own money to promote this product.

1. SAI, the IMO spending much money recruiting, recruits
2. Retread at a 115% contract; Retread knows a lot of agents and recruits
3. Green Sky at a 110%; Green Sky knows and recruits
4. The Insurance Guy at 105%; The Insurance Guy knows
5. Newby and Newby gets a 100% contract.

Newby had never seen this product, and felt at the time a 100% commission was fine for it.

Newby has the lowest contract, but still it is what the company would have been able to pay him if they had the home-office doing their own marketing.

Let's assume Newby turns into a super-star, selling the fool out of this product. He starts screaming that he is the man at the bottom of the pack doing all the big numbers and everybody else is "making money off my back".

Are they? Sure, they are all trying to make a living by promoting products, and 15% or 5% may not even come close to their potential exposure to the risks.

Newby is unhappy with the set-up, so he contacts the home office and they send him back to his IMO, SAI to try to calm the situation.

Should SAI try to please Newby by cutting out the rest of his uplines? Does Newby deserve the 115% contract? I don't see how SAI could do this without making all his downline mad, and lose them all.

Should ZYX say, "Newby you are such a super star, we are going to give you an IMO contract", and cut out everybody above you.

If ZYX did this, this would be probably the last time SAI would trust them, or even deal with them.

If SAI did this to his downlines, it would be the last time any downlines would want anything to do with SAI. And the company would probably want to get involved to prevent this type of thing from happening again.

In this situation, which sometimes is somewhat typical in this business; I would like to know the opinions of the right way this situation should be handled.

I do not see there is a way to keep everyone happy. The blanket statement of "It is simple, releases any time, for any reason", is not always real simple.

Joe, I don't see this situation as being an argrument in your favor. What happens in the real world is: If I don't have a good contract with a product, I just sell something else.

I don't feel like I have a good contract on Mutual of Omaha or Americo right now. It's not even worth the effort for me to switch them, I just don't sell them. There are too many other products to choose from.