New Agents: Beware Low-Commission Final Expense "Opportunities"

Jun 19, 2019

  1. Rearden

    Rearden Guru

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    Thinking about selling final expense?

    Heads up! Be wary of final expense "opportunities" that start you with LOW commission levels.

    Here's the thing...

    Most insurance agencies are not focused on agent development. Instead, they are focused on recruiting, anyone and everyone (Have a pulse? You're HIRED! =))

    And as soon as you join their multi-level marketing agency, you'll be pushed to recruit your friends and family.

    And with new agents recruiting people heavily, what happens is this. New agents like you end up at the very bottom of the downline at very low commission levels.

    And many times with heavy recruiting means there are a LOT of people in your downline.

    I've seen agents with starting commissions at 50%, 60%, and 70% first year commission.

    This is BAD.

    Why are these commission levels bad?

    Because low commissions in combination with having to pay for your own leads lowers your profit margins and makes it more difficult to leverage a high income from your personal sales.

    Sure, you can move up a few points here and there. But most recruiting-based organizations want you RECRUITING to get to the higher levels.

    And what if you don't WANT to recruit? What if all you want to do is SELL?

    Or what if you have some self-respect and want to actually LEARN the craft of selling insurance first before recruiting people who'll depend on YOU to train them?

    You can see where a relationship with an insurance MLM gets problematic, right?

    Instead, if you're interested in developing yourself into a top producer, you need to find an organization (like mine [​IMG]) that focuses on teaching, training, and mentoring agents to become self-sufficient producers, first and foremost.

    The good news is that agencies like that usually offer MUCH better commissions. We're talking about starting commissions at or above 100%.

    Why settle for lower commissions, especially since you're in business for yourself, are doing the lion's share of the work, as well as paying for the leads yourself?

    I talked to a top producer the other day at an insurance MLM. She netted $60,000 for the year on $140,000 in production. I'm guessing her commission averaged 50% to 60%.

    If all she did was worked with a carrier that paid her 100% or more, she'd DOUBLE her income and make six-figures, WITHOUT doing ANYTHING differently!

    Moral of the story, ladies and gentlemen... do NOT get screwed on your commission levels. Seek a relationship with an agency that will allow you to maximize your earnings.
    Rearden, Jun 19, 2019
  2. myinsurebiz

    myinsurebiz Guru

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    Reduced Commissions in exchange for a consistent weekly flow of hot & fresh Direct Mail Leads in conjunction with Training & Support is a GREAT idea . . .

    Especially for new Agents -or- Agents that can't afford the $500+ it takes weekly to be on a weekly lead order . . .

    Plenty of quality Leads = Plenty of people to see to make sales!

    Peeps shouldn't recruit until they are making money themselves and even then it's a PITA.

    Nothing wrong with reduced commissions, if you are getting something of value by doing it . . .