LifeSecure Group LTC

[ltci4sure]

2-5 per day is about normal.

I am getting more confused with every post. 5/day, 150/month, say 6:1 conversion (even though it's pretty high) yields 25 policies, 50k submitted, 30k placed @60% placement rate, 15k FYC/month, 180k FYC per year.

Let us now imagine that you have a 30-person agency. Out of these 30 agents, you got 10 who need 20 leads /week (none of them are as good as you with conversion between 7 and 15 leads/app), 20 who need 10 leads/week. This amounts to cool 400 leads/week, 1600 leads/month. If we are doing PPC, we're out cool 72k/month. If we are doing mail leads, 106k or so (and that's without getting a penny in the coffers yet, all upfront with 8 week lead time).
Expected yield: 40k premium / week, 160k/ month. Now, lets remember that we spent either 106k or 72k on leads, we also have to pay agents. Let's be generous. 50% FYC to the agent, just because all these ACSIAs, GNWs, LTCFPs are such greedy fools. 8k is left if you go all internet and -26k (a hole in the floor) if you go all mail. If you use combination of the two, you are out FYC and then some.

Now, let me ask you - can you or can you not generate this volume of leads with no lead costs?

Disclaimer: The above is a model, nothing more.

----------

I do not have not takens.

Right, no one ever gets surprised when they get re-rated for health with husband or wife being declined and refusing coverage instead.

My business model is probably different than your agents.

Majority of agents do the same thing you do with respect to giving people financial advice - which includes (judging by what you said) "referrals" (otherwise I can't explain constantly ringing phones). Problematic for someone starting in this business.

I do not make any presentations ever.

Right, so you are talking numbers and financial goals without ever showing anything to the client...

I do not "sell" or "close" anyone.

So you don't have people choosing a product that fits their goals, not doing quotes to price various options, none of that? Not asking health questions? Not helping the client to fill out the application, not sending it to carrier, not following up with the underwriters - nothing of the sort? They just tell you what product they want and you either help them with that or send them to their financial adviser (to receive Lincoln Moneyguard) ?

That has got to be some sort of Disneyland version of a business flow...

 

[goillini52]

I am getting more confused with every post. 5/day, 150/month, say 6:1 conversion (even though it's pretty high) yields 25 policies, 50k submitted, 30k placed @60% placement rate, 15k FYC/month, 180k FYC per year.

Let us now imagine that you have a 30-person agency. Out of these 30 agents, you got 10 who need 20 leads /week (none of them are as good as you with conversion between 7 and 15 leads/app), 20 who need 10 leads/week. This amounts to cool 400 leads/week, 1600 leads/month. If we are doing PPC, we're out cool 72k/month. If we are doing mail leads, 106k or so (and that's without getting a penny in the coffers yet, all upfront with 8 week lead time).
Expected yield: 40k premium / week, 160k/ month. Now, lets remember that we spent either 106k or 72k on leads, we also have to pay agents. Let's be generous. 50% FYC to the agent, just because all these ACSIAs, GNWs, LTCFPs are such greedy fools. 8k is left if you go all internet and -26k (a hole in the floor) if you go all mail. If you use combination of the two, you are out FYC and then some.

Now, let me ask you - can you or can you not generate this volume of leads with no lead costs?

Disclaimer: The above is a model, nothing more.

----------


Right, no one ever gets surprised when they get re-rated for health with husband or wife being declined and refusing coverage instead.


Majority of agents do the same thing you do with respect to giving people financial advice - which includes (judging by what you said) "referrals" (otherwise I can't explain constantly ringing phones). Problematic for someone starting in this business.


Right, so you are talking numbers and financial goals without ever showing anything to the client...


So you don't have people choosing a product that fits their goals, not doing quotes to price various options, none of that? Not asking health questions? Not helping the client to fill out the application, not sending it to carrier, not following up with the underwriters - nothing of the sort? They just tell you what product they want and you either help them with that or send them to their financial adviser (to receive Lincoln Moneyguard) ?

That has got to be some sort of Disneyland version of a business flow...

At 1st I thought you were being picked on a little bit, but the more you post...the more obvious it is that you're Trolling. It's really ridiculous the way you're twisting everything he says. For a while I thought I was reading the FE Forum.

 

[ltci4sure]

At 1st I thought you were being picked on a little bit, but the more you post...the more obvious it is that you're Trolling. It's really ridiculous the way you're twisting everything he says. For a while I thought I was reading the FE Forum.

Well I am trying to figure out whether Jack really has a business model (he previously claimed that he's generating 500k / year in business w/ $0 lead cost). All the agencies I have worked with have tangible (and significant) costs of doing business - leads being one of them. All of the agencies had to deal with lead conversion, lead utilization, etc - very real problems.
Now here comes Jack and the minions and claim that people who work at agencies are mere incompetent fools, who don't know what they're doing, plus the agencies are robbing them.

If you read what I wrote - please tell me, what am I missing there?

 

[CALTCAgent]

Glad you are talking numbers now. Your numbers are off though.

Let us now imagine that you have a 30-person agency. Out of these 30 agents, you got 10 who need 20 leads /week (none of them are as good as you with conversion between 7 and 15 leads/app), 20 who need 10 leads/week. This amounts to cool 400 leads/week, 1600 leads/month. If we are doing PPC, we're out cool 72k/month. If we are doing mail leads, 106k or so (and that's without getting a penny in the coffers yet, all upfront with 8 week lead time).
Expected yield: 40k premium / week, 160k/ month. Now, lets remember that we spent either 106k or 72k on leads, we also have to pay agents.

Let's be generous. 50% FYC to the agent, just because all these ACSIAs, GNWs, LTCFPs are such greedy fools.

This is not accurate. Most I have seen only give around 35%. Don't forget the agencies are on higher contracts with overrides. That puts them in the profit margin.

8k is left if you go all internet and -26k (a hole in the floor) if you go all mail. If you use combination of the two, you are out FYC and then some.

They most likely aren't doing direct mail. They don't even give all the agents leads. So they are in the profit first year by a lot.

Even if they weren't, these contracts are not vested and most agents leave and never collect their renewals. Sounds like a good plan for these agencies.

Also, some agents may not be released, so agents are stuck at lower compensation that still produce some.

 

[ltcadviser]

Majority of agents do the same thing you do with respect to giving people financial advice - which includes (judging by what you said) "referrals" (otherwise I can't explain constantly ringing phones). Problematic for someone starting in this business..

Not referrals. If you have a website with written content your phone should ring. This is my experience. YMMV.

 

[ltci4sure]

Glad you are talking numbers now.

Your response got just one number - 35%, pulled out of the thin air.

Don't forget the agencies are on higher contracts with overrides.

Yes, they are - the example I used was from Jack's GA - 100% FYC, 50% to the agent. What I was trying to show is that trying to run an agency, without factoring in support costs (you know, those fools who do books, run accounting systems, etc) and paying out 50% FYC places you in precarious situation from the get-go. I can do an analysis with data from my agency - and the numbers don't look pretty.

They most likely aren't doing direct mail.

Really? And that is based on factual knowledge? Please humor me.

They don't even give all the agents leads. So they are in the profit first year by a lot.

You make me laugh. If you don't give your agents leads they turn around and leave. So before you even got a chance to find out if an agent is going to work the leads and bring some business - you are in the hole.

Even if they weren't, these contracts are not vested and most agents leave and never collect their renewals.

Those who don't write anything and consume leads like water? Sure there is a lot of renewals to be collected there.. against all the leads they've wasted. I don't know what former LTCFP is doing now, but when I was talking to people around 2004-2005 - there was no such thing as vesting... everyone was vested from day one. Guess what happened?

Sounds like a good plan for these agencies.

Why don't you and Jack start your own, collect those overrides... good life?

Also, some agents may not be released, so agents are stuck at lower compensation that still produce some.

This is completely laughable. You know who used to do this? Genworth. You know who I've never heard doing it? Your friends at LTCFP.

And are all of you harping at Genworth? Or, perhaps, Jack's GA who's providing *nothing* in return for 50% FYC? NOoooooo. You're all harping at LTCFP....

 

[scagnt83]

At 1st I thought you were being picked on a little bit, but the more you post...the more obvious it is that you're Trolling. It's really ridiculous the way you're twisting everything he says. For a while I thought I was reading the FE Forum.

When have I ever picked on anyone?

 

[ltci4sure]

When have I ever picked on anyone?

The problem is that when it comes to disparaging (for no reason) it is either Jack or the minions. Opinions don't have much of a diversity - being independent agent = good, LTCFP = bad, we don't mention others by name. That's pretty much the picture one can construct after reading this forum and dare you not disagree with Jack.... bc you don't know Jack, even if you know Jack...

 

[CALTCAgent]

Your response got just one number - 35%, pulled out of the thin air.

This is pulled from actual conversations. Straight from multiple agencies. I'll even bet money on it. Like you pointed out, they need to adjust those numbers to make it work for them.

Who pays 50%, let me call them now and confirm ?

PM me if you like.

Yes, they are - the example I used was from Jack's GA - 100% FYC, 50% to the agent. What I was trying to show is that trying to run an agency, without factoring in support costs (you know, those fools who do books, run accounting systems, etc) and paying out 50% FYC places you in precarious situation from the get-go. I can do an analysis with data from my agency - and the numbers don't look pretty.

Using Jack's GA as an example makes no sense. They don't have a churn and burn operation like yours. You should use your numbers. The fact is you cannot use Mass because the numbers don't work for you. Shame on you.

I am sorry there are "support" costs. That is not important though to the agent, you just have a bad system for the agent. The fat in your system is in the management/sales recruiters like yourself. The system is good for you only.

Really? And that is based on factual knowledge? Please humor me.

Yes, my personal experience. I don't know what yours is based on, what do you do again ?

You make me laugh. If you don't give your agents leads they turn around and leave.

These agencies don't care. They hire more, it is a revolving door. They keep the renewals and possibly more. They lock the agent into low contracts and never release the ones that are quiet.

They can tell them leads aren't in yet. They can tell them they are not closing enough. Both situations require the agent to self produce with the hope of getting leads. Dangle the carrot. Poor system for the agent.

So before you even got a chance to find out if an agent is going to work the leads and bring some business - you are in the hole.

You aren't. You will hire more agents to work the leads. They will turn into "B" leads. You can give them to senior agents to work. Plenty of options for the agency.

Those who don't write anything and consume leads like water?

The training should be sufficient that if the leads are good, they should be able to close them. This is not rocket science. Again, those make great "hot" responder leads for others. Poor system for the agent, IMO.

There is a lot of renewals to be collected there. I don't know what former LTCFP is doing now, but when I was talking to people around 2004-2005 - there was no such thing as vesting... guess what happened?

There is no vesting. System doesn't work with vesting.

Do you think we are stupid ?

What is the written release policy ?

Why don't you and Jack start your own, collect those overrides... good life?

It would be a financial windfall. I can't treat agents like that though. No way I can treat people looking for a job to support their family in that manner. It takes a special breed of human to do that.

And are all of you harping at Genworth? Or, perhaps, Jack's GA who's providing *nothing* in return for 50% FYC? NOoooooo. You're all harping at LTCFP....

I'd rather have 50% and get nothing than 30% and get nothing.

 

[ltcadviser]

Mass Mutual will also pay ERA to move 50% to a respectable number.