Mega comes collecting

[Colorado Newbie]

100% agreed WITH a caveat. The only "perceived" liability about advances is if a GA/MGA, etc. with a larger work force is liable for commissions and they have unethical agents or ignorant by choice or laziness.

The argument between as-earned vs. advanced is comparable to the BTID debate, but doesn't take into account the time value of money and opportunity cost. Granted we're only talking about months and not years initially, but the argument is sound about using OPM.

Taking John's $10,000 AV per week estimated with a 20% commission leaves an agent with $2000 per week or $104,000 a year before taxes, savings, expenses, etc. One method could be:

20%-30% savings for taxes (individual tax bracket and state taxes impact this number) leaves you with $1400

30% for marketing leaves you with $980.

25% secured (12% of gross) in a separate "save investment account" for chargebacks leaves you with........

$735 left over for business and personal expenses, which can be broken down in more different categories.

After a few years the renewals will given you even more money to dump into marketing and work the same strategy allowing you to get into advanced applications.

I can see the comfort zone of having as-earned, but who in their right mind (if they weren't personally liable as a GA) would give up the chance to obtain an interest free loan with low risk.

Interest free loan? With advance commissions through both World and GR I am being a charged 1% monthly interest rate. I do not consider myself to have a 20% comm rate from World and GR I consider it to be 19%.

I am going as earned as soon as I can afford it!

 

[Crabcake Johnny]

There's never interest if you're direct.

 

[J.R.]

Interest free loan? With advance commissions through both World and GR I am being a charged 1% monthly interest rate. I do not consider myself to have a 20% comm rate from World and GR I consider it to be 19%.

I am going as earned as soon as I can afford it!

It sounds like you're through AHCP or another organization. John P already illustrated the difference between direct and non-direct. Even so, where else can you find a 1% (monthly loan).

If I made $5000 in commission in one month and half of it charged back I'd be liable for $25 in interest. If somebody is worried about $25 or they have 50% of their business blow back they need to quickly reevaluate their ability to stay in this field.

 

[Crabcake Johnny]

First of all, the math quoted is wrong. If you're through an agency that advances indirect and they charge 1% it's on the balance, not the commission percentage.

Example:

$10,000 written X 20% = $2,000 X 1% charged = $20

Not

$10,000 written X 20% with 1% in commission charged means $10,000 X 19% = $1,900.

They are not taking 1% off your commission percentage. Also, outfits like AHCP do not charge 1% to advance commissions. There is no charge on advances. If you're at 20% you get the full 20%. They only charge 1% on debt. If you're in the hole, that's when the 1% kicks in.

The only company I know that charges to advance is Mega.

 

[J.R.]

First of all, the math quoted is wrong. If you're through an agency that advances indirect and they charge 1% it's on the balance, not the commission percentage.

Example:

$10,000 written X 20% = $2,000 X 1% charged = $20

Not

$10,000 written X 20% with 1% in commission charged means $10,000 X 19% = $1,900.

They are not taking 1% off your commission percentage. Also, outfits like AHCP do not charge 1% to advance commissions. There is no charge on advances. If you're at 20% you get the full 20%. They only charge 1% on debt. If you're in the hole, that's when the 1% kicks in.

The only company I know that charges to advance is Mega.

Hmmmmm....Something sounds familiar????????

If I made $5000 in commission in one month and half of it charged back I'd be liable for $25 in interest.

FedEx - Stolen idea

 

[senior-advisor-indiana]

All my med supp companies charge interest on advances.

 

[STIBROKER]

WELL.....it seems that we have something that pertains to this thread...lets see how long this stays up....

_______________________

Hi Stibroker,
My name is xxxxxxxxx and I'm embarrassed to say, am an ex-agent with Mid-West/MEGA/Health Markets.
I wanted to see if you had any input for me from what you've experienced and heard on this forum and elsewhere.
My problem is this…actually, if you have a few minutes, allow me to share with you what I put on the Ripoff Report…I omitted certain things because I'm pondering a lawsuit for mis-leading, mis-representation, fraud, and other things by the managers on up at these companies…
Here's what I wrote out of pure frustration against Health Markets:
After over two years of working with Health Markets (Mid-West, MEGA, Cornerstone America), I finally let the burden and monkey off my back by focusing in another industry that isn't as sketchy as selling MEGA insurance nor as financially draining to the pocket book too. Sure the managers and regionals were nice to a certain degree and the training was consistent and in depth, but many things were mis-leading, mis-represented, and omitted to us agents...even to the degree where I've heard and read several agents say it was like 'brain washing' [they'd make you think the product is the best thing out there and teach you how to sell it without going over the flaws and pitfalls (somewhat deceiving people)...when in reality, the product is very limited and specific to who it can and can't help]. Not to mention that we agents were made to believe we'd all be making upwards to $90k our first year (assuming we could keep up with the unrealistic goals of 10+ appointments a week, etc.), supplied with great leads to call, and the business would build from there. It would take a little money to make money, but that's to be expected with any job, right? Come to find out, you're contracted with the company, yet treated like and employee and have certain expectations on you when it was apparent in training that we were free to be on our own.

No wonder the first office I worked out of went thru 50-100 agents each month...probably keeping 1% of them no more than a month or two at the longest!

And the leads...about as cold as it gets in Alaska for the most part, but still a lead (except for the 1/4 to 1/3 of them that either the phone numbers didn't work or people who said someone asked called them for their phone number and were almost 'forced' to give their info for something they didn't want or need).

So the main reason I'm writing this is due to this: I received a letter that now put a gorilla on my back...after selling for them, trying to keep a good face for the company and yet going into debt and losing money (since the company doesn't do a good job with servicing and answering questions due to the lack of needs the insurance actually meets); clients kept dropping the plans. So MEGA (Health Markets) is stating that because of the contract I signed, it's my responsibility to pay them back for advances I received that didn't even come close to paying the bills, and basically that it's my fault that Health Markets can't retain clients during and after I leave their company because the product flat out 'stinks' for the most part. Check out the article on NAIC...Health Markets is certainly 'reaping what they sow', but I don't want to pay their bills for them if I don't have to.

I know there are several out there that have faced the same situation so my question on our behalf is this:
Is there any way to get out from paying them this money that is supposedly owed to them since: 1.) I can't afford $xxxx, 2.) I don't feel it is just nor fair to pay them any money...they should pay me for trying to convince clients how good their insurance is, and 3. So I can just move on with my life and prohibit other agents from getting upside down in their finances and deal with the same misfortune and mess it appears I'm dealing with now."
Thanks Stibroker,

_______________________
CALL Me....512-260-0856

_______________________

sorry "Stibroker",
I've been getting slammed with work which is good considering this economy!
I've been testing and seeing what this guy in Cornerstone's Collection Dept (AKA Health Markets, MEGA, Mid-West) wants and is willing to do, but he sure has little man syndrome.
We apparently owe them $xxxx + and he said he'd take $xxxx, but I still don't have that nor want to pay it.
He's asking for my tax assessment, and not sure I really want him to have that info as well as health items since we said I've been having health probs...which is true. I'm going to also ask an attorney friend if there's anything I can do, but I'll call you to see if you have any ideas from other's you've "threaded" with on the insurance forums.
Thanks and hope you're doing well,

___________________________


ask him to provide a complete accounting of your account from your fist client to your last client and documentation of how long they were on the books and when they fell off ......
Good call. I used to be able to access that info, but can't now since I left the company.

___________________________

Exactly...I think that's what they hope...just sent that email to the guy...his name is "xxxx" of all names. =)​

I'm not as pissed as I was, but still am willing to fight for what's right.​

If I owe them, then I owe them, but I do not trust them!

________________________________

​

Can you or someone provide me with a complete accounting of my account from
the fist client to my last client and documentation of how long they were on
the books and when they fell off please?
Thanks xxxx,
xxxxxxxxx

_____________________________

I can provide you everything with the exception on when a policy, or who, dropped off the books. It is against HIPAA regulations to even view this material. I always tell everyone though that in order to figure out who has dropped off, just do a simple process of elimination, i.e., if John Doe is on the books in March and April then no longer in May, he has dropped off.

______________________________________

Hi xxxx,​

I have a records of the applications I sold, so if Cornerstone is saying I owe a certain amount (like $xxxxx.xx), I must have the details and be shown who paid (names only, not personal info), when it was paid, when the client dropped the policy (Mid-West, MEGA, AAS), and how Cornerstone came up with that amount.​

If this information can't be provided, then there's no basis nor proof for me to know what I need to pay, and no way to cross reference it with my accounting.​

I would also like a statement of checks that were cut to me (or direct deposited into my account) please.​

All of this information used to be accessible on the website, so I know it's available.​

If it can't be proven, then this isn't going to get anywhere.​

No matter what, this information is a must in order to complete any transaction if there is to be one.​

Also, HIPAA prohibits me from having clients personal information, however, this isn't a breach of HIPAA since I'm not asking for client's personal info, just what was stated above please that is pertaining my financial information.​

If I still have people on accounts, and it may still pay out, that's one of the things I want to review.
Thanks,
xxxxxxxx

_________________________________________

xxxxxxxxx,

I have no reason to lie about HIPAA. I will provide you every possible piece of information that I can, which will be the same information that we provide to everyone that asks.

I can now guarantee you that there will not be any type of reduced settlement on your account. You will have two options to repay your debt: 1) pay entire ending balance then receive monthly back-end checks on all future earnings or 2) pay in full, and immediately, the difference between your remaining first year policies (you are eligible for 95% of per the contract), and your ending balance. This number will change on or around February 5th, based on the fact that new numbers come out each month around the 5th business day of the month.

Thank you!!!!

 

[InsuranceBenefitsGroup]

Colorado, what ever happened with your $5K bill with Mega? Are they pushing to collect?

 

[Colorado Newbie]

Well, I have to admit that I have yet to see anything from them other than a nasty letter saying I owe them money. No letters from any collection agencies either.

And I just talked to my old DSL earlier today and he said that they usualy just try and push people into paying and rarely ever pursue it beyond a phone call and a letter from them.

 

[STIBROKER]

I bet if you call Vector One..you will find a different story....

Well, I have to admit that I have yet to see anything from them other than a nasty letter saying I owe them money. No letters from any collection agencies either.

And I just talked to my old DSL earlier today and he said that they usualy just try and push people into paying and rarely ever pursue it beyond a phone call and a letter from them.