MA opportunity, good deal or not?

May 30, 2007

  1. Juddzilla
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    Juddzilla Expert

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    I've been contacted by a broker to work pre-set MA appointments. They are offering up to 8 appointments a day, a minimum commission of $150 and the lead/appointment costs $17.50 (deducted from commission).

    I have never been involved in MA before, so I don't know if this is a good deal or not. Any thoughts? Thank you!
     
  2. InsuranceJosh
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    InsuranceJosh Super Genius

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    You sould be making closer to $300 in commission. And on top of that they are charging you $17.50 per appointment? That means that they are at least making $150 + $17.50 per close and you are only making $132.50.

    Dont forget that you are still paying $17.50 on the ones you dont sell.
     
  3. Juddzilla
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    Thanks Josh, I'll put their feet to the fire with this info and see how they respond.
     
  4. senior-advisor-indiana
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    senior-advisor-indiana Guru

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    Sounds like Greenway or Parker and Assoc.

    If you will be paying 17.50 per appt then you would be better off buying leads and getting $300 commission. YOu can get a set of leads for $350 and get about 30 people to see. If they are MA leads you should get at least 10 sales and make $3300. You can always make more money buying your own leads.
     
  5. Juddzilla
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    I knew it sounded too good to be true. Thanks for the advice guys.
     
  6. Cenla Agent
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    SHC?
     
  7. senior-advisor-indiana
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    YOu might try contractiong with just one carrier if they will let you. Pick one thats not the mot competitve and then contract with the other companies direct. That way you can pay for the appointments and still get full commission. They are screwing you so why not crew them back. Thats how I look at it.
     
  8. sman
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    I can't say anything that hasn't already been said. There is no reason for them to reduce your commission AND charge you for the lead. I think the MGA commission on MA plans is in the $450-$500 range. So if you're getting $150, they are getting $300-$350 and you are paying for the lead as well. If you have to pay for the lead, they should give you much more commission.

    Dang, sounds like a pretty good deal. Maybe I'll just set up a call room and schedule appointments for agents.:biggrin:
     
    sman, May 30, 2007
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  9. Juddzilla
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    If that's the name of a brokerage, then no. They're called LIS.
     
  10. Cenla Agent
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    The MGA commission for Pyramid is $350. I don't know about other plans but the highest I recall hearing is $400. At any rate, $150 is very low for an independent agent, especially with having to pay for leads. Captive agents with one carrier I know of make around that for MA sales and in addition have a salary, car and cell phone allowance, seminar expenses paid, etc.
     
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