Charlie456
Expert
- 88
One thing that's important to know is that if you decide to leave their retail/career shop you are prohibited from writing Genworth for 1 year.
Ltc Insurance Question
- Thread starter Broker22
- Start date
Just unacceptable. Train yourself. Get a General Agent's contract. Run your show. Write your own ticket.
Pretty interesting how people feel Genworth career shop is being "unfair". Training new agents takes both the expense of paying the trainers, going through the rigors (including attending appointments with new agents, etc), plus a major expense of supplying the leads, which new agents may not be using well. Basically the company makes an investment and wants to make sure it is not a complete loss. Probably hiring 10 new agents results in 3 agents staying with only 1 producing a volume of policies that makes them break even in the first year.
Interestingly, some of the same attitude has been showing up in posts regarding LTCFP's program (which probably would not even qualify as being "draconian"), though LTCFP's is pure evil if you believe the posts and Genworth's, well...
And another note - I have read some posts regarding the Genworth and LTCFP (being that LTCFP does not have a contract with Genworth). People stating that LTCFP had been "stealing" career agents and so forth. If I were to believe the posters, LTCFP should behave like some Silicon Valley figures - see articles regarding the conspiracy of not to hire employees between Facebook/Google/etc. Seems like Genworth is engaging in a stupid retaliatory practice which hurts their business side to make some strange point with respect to the career shop which would run afoul of regulators in any other industry.
Perhaps true proponents of independent business on this forum can comment regarding this duality of attitude found in the posts?
Interestingly, some of the same attitude has been showing up in posts regarding LTCFP's program (which probably would not even qualify as being "draconian"), though LTCFP's is pure evil if you believe the posts and Genworth's, well...
And another note - I have read some posts regarding the Genworth and LTCFP (being that LTCFP does not have a contract with Genworth). People stating that LTCFP had been "stealing" career agents and so forth. If I were to believe the posters, LTCFP should behave like some Silicon Valley figures - see articles regarding the conspiracy of not to hire employees between Facebook/Google/etc. Seems like Genworth is engaging in a stupid retaliatory practice which hurts their business side to make some strange point with respect to the career shop which would run afoul of regulators in any other industry.
Perhaps true proponents of independent business on this forum can comment regarding this duality of attitude found in the posts?
Charlie456
Expert
- 88
I just don't understand the 1 year moratorium as a well trained retail/career agent that eventually feels the independent channel is a better fit would probably still sell a whole lot of Genworth if they were permitted to do so.
Don't overstate the pyramid scheme. LTCFP paying an agent only 35% FYC on a PPC lead is not an investment. It is profit. If I had a stable of agents contracted at 35%, I would gladly train them and give them all the leads they could handle. As would everyone else on this forum. Instead, if anyone ever asks me I simply make a call and get people a General Agent contract and wish them good luck. I would rather see an agent make 80% than see an agent make 35%. Sorry if I dont find value in your hierarchial structure.
Regarding Genworth career contracts, at least the Genworth compensation is closer to being reasonable. And an agent is vested immediately. LTCFP agents have stated they do not vest for 3 years. Really?? 3 years is eons with the changes in LTC these days.
Either way, most everyone on this forum is independent. So you will receive a view slanted highly towards being independent.
We all drank company kool aid once. And we all spit it up a long time ago.
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You are 100% correct. If permitted, Genworth would still be the preferred carrier of many agents.
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You are simply misinformed about the compensation structure at ltcfp. Agents who come onboard and not through the training program have no such thing as a vesting requirement, to the best of my knowledge. As for 35% FYC - agents always have an option of paying for the leads themselves (and not being restricted to 35%). In this case they still get the advantages of the infrastructure and being part of the organization (such as opportunities to work large accounts). Those who come onboard through a training program (and that entails company investing time & resources into a new hire) - vesting is not time-limited. If an agent places certain amount (which escapes me at the moment) - they're fully vested regardless.
Let me also address "this is profit" statement - with a question - what is your ratio for closing leads? Arthur stated on DM thread that he sells 2 out of 10 leads resulting in $10,000 in premium. I would say LTCFP would be lucky to get new agents to sell 1 out of 20 (for those who sell at all). So suppose LTCFP gives out 100 leads (thats $10,000 investment if you take return rate of 0.5% - sorry Arthur, not everyone is doing business in NY). On average they'd be lucky to get 5 sold on average (due to agents being new, not working, etc). That policy will be subject to reduced placement rates by new agents - say 50%. Amount at the end of the day: $5,000 in placed premium for new agent's business. The fatal flaw in your argument is that you are assuming LTCFP is taking onboard experienced people and sticks them into a program where they're "milked" for business. This is very very far from reality. People who join LTCFP get training, support and access to opportunities which are difficult to come by as an independent.
Like anything in life - where one person finds value - others see none.
Really? Not what other posters on this thread shared...
I am not asking you to drink any company's Kool Aid. Just try to be fair. There are advantages and disadvantages to any offering out there - Acsia, LTCFP, career or independent. When looking at it, let's try to look at facts, not innuendo.
ltcfp doesn't have a contract with gnw because the ceo of ltcfp screwed gnw years ago long before he ever started ltcfp.
bottom line, if you can't sell gnw you are at a big disadvantage.
Yes, LTCFP does not represent Genworth or even Mass Mutual? So, how do you expect a newly trained agent to close any business? The deck is stacked against your newly trained agents.
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No it is not; more like $2000 investment at PPC acquisition costs. If agent sells 1/100 LTCFP profits. Not much risk. Especially because agents say they get A leads and B leads. So leads are turned over to multiple agents reducing LTCFP acquisition costs.
It may be considered somewhat of a disadvantage - although agents I spoke to don't feel this way.
Splendid - you have access to $20/lead quality leads. Where would I find that? I know some folks at LTCFP who would shell out some serious $ to an expert who can point to an unlimited supply of those.
Assuming 100% placement rate. DO you place at that rate?
As far as I know, agents at LTCFP do get b-leads, but those do not count toward any limits against production.
The cost of A leads which I have quoted was specifically for DM leads using 0.5% response rate and Arthur's figure in the other thread. Generating needed volume of internet leads for a company of LTCFP's size is a challenge.
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Please enlighten us. Having read this forum I was under the impression that gnw got mad at their former agents for leaving and hiring away their "career" agents. Having spoken to LTCFP people, no one ever mention any laws were broken. Seems to me gnw is behaving like a slave driver - or an organized crime group (depending on your point of view). A similar case is winding its way through courts right now (see "High tech employees anti-trust litigation"). Conspiring between industry players "not to hire" each other agents would certainly constitute a similar situation.
I am really surprised by a blatant advocacy of gnw's behavior on this forum.
Arthur Rudnick
Guru
- 1,652
previously posted by ltci4sure
Yup, that's exactly what happened.
Yup, that's exactly what happened.
