MLM Agencies??

Dec 18, 2018

  1. jcorr
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    jcorr Expert

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    I'm with New York Life and we get paid renewals on term. Term is a great product and allows us to make multiple sales to the same client over the years, especially when our client becomes educated on what permanent insurance can do. Permanent insurance isn't the end all but it definitely does cover a lot of needs.
     
    jcorr, Dec 22, 2018
    #31
  2. Cornelius
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    Cornelius Guru

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    Are people buying their products? If so and anyone can offer a better service or product then just compete. The "MLM" part is mostly about compensation.

    Times are a changing...Yet recruiters recruit and sales people sell...There's room for both in these streets..
     
  3. old rookie
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    old rookie New Member

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    No matter how hard you try to recruit honest people, somewhere in your down line a dishonest person will appear and hurt a lot of folks. I see this as the biggest problem with MLM marketing in the insurance/Financial services business. Most MLM organizations treat the business like it is Amway and we are not selling soap. It is very difficult if not impossible to "control" the quality and honesty in a MLM organization. I am speaking from my personal experiences. AL Williams would have been a lot better off if Hubert Humphrey and his Amway model had not been allowed. MLM is an open invitation to con artist. If it is soap or or other consumable products it might be okay. Protecting families financially is a different story.
     
  4. toolbelt
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    toolbelt Guru

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    That's exactly what MLM companies would have you believe.
     
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    For those who are professionally minded, that should be true.

    The problem is that "Compensation drives behavior". What behavior does MLM compensation plans drive? Recruit and make sales the easiest ways possible. This creates a "short-cut" mentality - which is the opposite of professionalism.

    Remember the MLM-famous line of J. Paul Getty: "I'd rather have 1% of 100 people's efforts than 100% of my own." And because of the MLM structure, sales results pay A commission for retail sales, but a great deal of it is also passed along upline. So the way to "do well" in MLM is to have a large organization who make "token sales" with the promise that each person can also "build a large group".

    Now, I personally don't care about MLM for consumable or even durable items. Even Lularoe was decent... until they rescinded their return guarantees. It's the notion that financial services should be "MLM" that I have the biggest issues with.

    You know PHP, right? You know that guy Matthew Sapaula? He's no longer licensed - even as an insurance agent! Look him up in Illinois on the NAIC licensing website. All he does... is promote the insurance agent opportunity with PHP (personally, with a radio show, and his YouTube channel) and lets his WIFE do the selling! He used to do personal production, but now, because PHP allows two people to share a rep number... his wife does the selling and he does the speaking.

    Why is that?
    1) He did run afoul with Illinois Department of Securities for selling or representing unregistered securities without proper disclosures. (You can look that up on his BrokerCheck record.)

    2) He really is a motivational guy, so he actually is a better promoter of the "opportunity" than he probably was as a producer. And without licensing, he PERSONALLY doesn't have to be held liable to regulators (other than FTC and others that "regulate" MLMs).



    You've got to have a "face" to the MLM and have some people promote the "high-consumption" lifestyle to RECRUIT (a common MLM recruiting theme)... but CLIENTS, while they want you to do well, don't really want you to do THAT well.
     
    DHK, Dec 22, 2018
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  6. somarco
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    somarco GA Medicare Expert

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    I doubt that is true, but could be.

    My son worked in their HO a few years ago as a security engineer. I don't recall the exact figure but the avg PFA agent made less than $10,000 per year. I think it was a LOT less.

    Most sell very little personally but are hoping to build their downline who WILL produce so they don't have to.
     
    somarco, Dec 22, 2018
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  7. somarco
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    somarco GA Medicare Expert

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    The Fran Tarkenton business model?
     
    somarco, Dec 22, 2018
    #37
  8. StarterAgentKG
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    10,000 per year— is that a misprint, did you forget a 0.
     
  9. somarco
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    somarco GA Medicare Expert

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    You could be right.

    Might have been $1,000 per year.
     
    somarco, Dec 22, 2018
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  10. Cornelius
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    Even traditional companies get a few bad Apples. There are more good than bad.. As going forward Hubert Is focused on building with simplification for the masses..

    Now for the issue of training. People are independent business people and can run their business/organization as they see fit within company guidelines..

    So a person can build and have their own trainings for their team be it in person or online. The "MLM" thing doesn't really apply beyond compensation.. The big game changer is the platform of simplification for the masses which will help with prospecting and building..

    As for the 1% thing yes there will be many who do a few because not everyone has a desire to be wealthy. For the most part I assume most of the agents in this forum are or want t o be full-time.. When building with part-timer people can just give it a try with a trainer. If the opportunity or industry isn't for them then they can walk.

    Ok I know here comes the professional thing. As mentioned above a person can train their organization as much as they wish.. In short.. The business model isn't for everyone but the masses will be able to be exposed to the opportunity and be able to try.. Simplification...
     
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