MLM Agencies??

Dec 18, 2018

  1. StarterAgentKG
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    StarterAgentKG Expert

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    Again this is another question that I am sure varies per Carrier and Agencies. But, what is the difference between and MLM agency and for example an MGA or GA that recruits agents under them. Don't they both technically have downlines, or is it that MLM agencies focus more on recruiting then selling the Product?
     
  2. myinsurebiz
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    myinsurebiz Guru

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    Pretty much as far as structure.

    Insurance is the ultimate MLM or Pyramid. Has been for a century. Those at the top are shielded from great risk since there are layers in the hierarchy.
     
  3. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Culture and professionalism are the two biggest differences you'll find between traditional agencies and the "MLM's" out there. I tend to see that most MLM agents are doing well in the "kiddie-pool" of financial services and just enjoy "trolling" their non-thinking ideas upon everyone else.

    There are exceptions, but they seem to be rare.
     
    DHK, Dec 18, 2018
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  4. StarterAgentKG
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    StarterAgentKG Expert

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    I know what you mean.. like agents who sell term who say "we don't rip off our clients with trash value" and stuff like that.
     
  5. Newby
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    Newby Guru

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    My definition is that MLM agencies allow and some even strongly encourage agents who are new to the biz recruit other agents under them. And they often put them at lower commission levels than other agents who are also new but just got there first.

    It’s one of the worst things about the insurance business that this is even a thing.

    I get roasted by the recruiters when I say this but every single agency group should be required to post their commission levels for new agents right on their website. If there is another level where an agent can give up some f his commission for certain “value adds” that should be listed too and clearly explained. That way the agent can decide which option he wants.

    But with MLMs agents are recruited out of ignorance. Agents sign up under a “buddy” at 80% instead of 120% because they were never aware the 120% was the normal commission and you “buddy” is putting you at 80% because he was so ignorant that he is a recruiter and only has 90%. And the recruiter that signed him up is at 100% and the guy that signed him up is at 110%...

    These guys are pitched that the real riches are to recruit your friends rather than selling insurance. This plan works out for very, very few. It’s a racket.

    My advice has always been to signup at the full commission levels that new agents are supposed to start at. We have ours posted right on our website (FexContracting) if you are not already familiar with what FE commission levels are.

    Then learn how to sell insurance. Take advantage of your Upline training and mentoring and interact with the known high level producers within your agency. Don’t reinvent the wheel. Do exactly what other successful agents do. Be careful about getting advice from Facebook groups or even this forum if you don’t know the person giving the advice. There are some really crazy things I’ve seen especially on Facebook lately. Just nutty techniques but to a new agent the advice givers would look credible.

    Once you get to a high level of insurance sales of your own personal production (in FE it’s generally thought of as $200,000+ issue paid annually is high level) now you are at a level where you could recruit if you still want to. You have knowledge to share. And you will have higher than beginner level commissions so you can put beginners at proper commission levels without taking part of theirs.
     
    Newby, Dec 19, 2018
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  6. lukifer
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    lukifer Expert

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    Ahhhh... Primerica....
     
    lukifer, Dec 19, 2018
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  7. StarterAgentKG
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    StarterAgentKG Expert

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    lol are they known for saying that.

    kind of off topic but here is how it all comes up. WIth Primerica people, I have noticed that as soon as you mention you have an Insurance license, usually at a networking event, they are like hawks. Basically told the I wasnt interested and he asked why I wouldnt atleast want to sit down. Told him I was leaning toward final expense (of course he said there is no money in that), Then I said that I heard that Primera agent don't get paid off renewals, and his response was "well right because we don't screw people over with Trash Value, or mean cash value"

    So do yealy renewal commissions only happen with whole life.
     
  8. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    UL, IUL, NLGUL... can all have renewal commissions.

    I just consider the "kool-aid" drinking Primerica agent "professional trolls" and they have been for a long time.

    I just like what John Savage said about AL Williams: "Don't be worrying about A.L. Williams! Part-time!? Can you imagine Dr. J coming down the court and me on defense? Do I go to the left and put it in? Go to the right and put it in? Do I put the guy and the ball in?"

    I'm also trying to avoid "feeding the professional trolls" because it's very difficult to have a business discussion with a "kool-aid" drinker. I've seen it (and done it) many times, and it just can't be done. Let them do their **** and we can keep converting their expensive term to our beautiful, glorious, permanent cash value coverage!

     
    DHK, Dec 19, 2018
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  9. StarterAgentKG
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    SO what is Final Expense considered because I have been told that FE has Renewal Commssions as well
     
  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    FE does. It's a permanent policy, but it's not designed to build up any cash values.
     
    DHK, Dec 19, 2018
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