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So let's delve into it a bit more. I had to deal with a brand new agency starting up in this business. Studied what various outfits do (including LTCFP) - was surprised to learn how they did it. LTCFP started out by providing an option for agents to buy mail leads at a discount (to the tune of $300/1000 mailed), 70% advances, 65/6/4 or so commissions, uniform across carriers, vesting day 1, ability to borrow to buy leads, 0% interest - against future commissions.
This is 10% less first year average LTC commission. 1 sale at $2,500 premium equals $250 less compensation. All to save $200 per thousand on direct mail ?
Do you have requirements on the mailing criteria ? (piece, age, income, etc.)
I guess you are hiring agents that can't afford leads.
Worried about the future? The partnership bylaws specified agent portion of renewals is secured (agency can't touch it, can't leverage it or borrow against it).
Not when company provides leads. Nice try though.
You have issues with your pc? There was tech support, appointments specialist on site, training, etc. It required them to run red ink. Should I continue?
All fluff. Give me the leads and comp.
So I was going to look at the startup agency I have mentioned. About 30 agents. Contracts that we got looked more like 85/12/6 than the do-nothing parasitic GA that Jack likes so much (and you, the minion, don't mind, bc they tell how you they will screw you, and then go ahead, and well - screw you).
Good comp., who are they ? I'm sure you don't get any leads at that comp.
Expected 160k weekly turned out to be more like 70k. 1 staff accountant, 1 appointments/hr/receptionist, 1 tech guy, attorney's time, office rent - total annual budget about 500k. So you have to make payroll of about 45k/month. Out of the said 70k you spend almost everything on leads - and the press cannot stop. Bc if you stop - you dig yourself deeper hole.
That is too bad. What you describe sounds like it is necessary to run it like churn and burn to make it.
You need agents to leave to get the renewals for any profit.
So you look for more agents, who require more leads. So you try to get rid of people who took the leads and did ... big ... fat ... nothing.
Come on you hire people with lead financing as a perk. You are not hiring experienced LTC agents. This is not your business model.
So you try to keep people who got into some sort of trouble and could not work (but told you a month later, after they got 3 weeks worth of leads, that could have been worked by someone else). Do you feel the pain yet?
No. Give me those leads and I will work them.
Having read the above, you are still delusional? Let me help you - if you are serious coming onboard, we (and any other agency) - will tell you what your compensation will look like, what you can expect with respect to leads and what is expected of you.
I am still delusional. It helps keep me from going insane.
There also has to be an open release policy in writing up front. It is not fair for an agent to drop contracts to come on board somewhere then find out things were not working for whatever reason and be stuck at the IMO.
Not everyone likes to have their math splashed across the forum for people like yourself to wag their tongues on. Not that it is a huge secret.
I understand. Too bad there wasn't an easier way.