Perfect Example Of Why You Should Door Knock Your Leads

[Ron Van D]

Everybody's so opinionated. Don't ya'll know that there is only one that is always right on the final expense forum, and unfortunately, he doesn't post anymore.

But we can all go back and read their posts to see what we should think on specific subjects.

AL???

 

[Newby]

I'm a new NY agent looking to make a decision on what direction to take for telesales. I've spent the last week hyper focusing on what is the best opportunity.

Selling F2F in NY is kind of out of the question. Yeah - there's the AIL NY subsidiary NILICO that provides free leads for around a 60% cut - but the lead premise is "get your no cost benefits"...then let's get into the needs analysis and the insurance sale. It's a huge Craigslist recruiting operation...throw 1,000 agents on the wall maybe 5 will be there next year... I prefer that the prospect know upfront we're talking insurance...

Anyway - looking at doing telemarketing to out of state prospects seems to be the only clear direction to take. I'd rather be in my upscale, comfy home working 12 hours from my desk 8am-8pm then driving all over the place for no shows and no thanks...and doing door knocking in NY after dark...fahgettaboutit....

I've been around the block in corporate jobs, owned a number of businesses and worked for 100% commission in the mortgage business (best decision ever pre 2008) and the argument that has diverted here for being either totally independent at 115% + buying leads or getting free company leads at 60% - is nothing more than a classic "make or buy" decision.

Gentleman - with both methods you are 100% self employed. Both methods are being in business for yourself. It's just a numbers game. I've run the numbers up/down/sideways and conservatively the NET for the front end is very close whether it's at 115% buy leads vs 60% with free. The back end renewals are probably the biggest difference.

At the end of the day it's all about the quantity and quality of the leads plus the back end servicing, support and training. It's not about if you have the money or not to front the business.

To me it appears that the telemarketing choice for leads/platform is either to go 115% at DigitalBGA or 60% at NSIA...it all depends on available lead quantities and closing conversions. DBGA are not live transfer - so there is the outbound calling scenario you have to deal with, while NSIA says their leads are all inbound and pre-screened. DBGA says look for a 5-8% close while NSIA touts a 20% close...they both come close for upfront cash flow based on the above assumptions....I'd have to delve a little deeper into NSIA's vesting policy - I believe DBGA is day one.

So there you have it as a new old guy sees it. Thoughts?

I'm not sure who NSIA is. But if you are working for 60% you can probably forget all about vesting. You probably are not paid by the companies at all. Many times you will be a "licensed only" agent. Not the agent of record. That's a scary thing to do if you are looking at a long term business. If you are just looking for quick turn key sales job with little to figure out for yourself it might be fine. But not like owning your own book.

 

[Newby]

Sorry I mean't NorthStar IA...they say you are direct contracted...i know it's just for one insurer...
Telemarketing options??? Will get licensed in as many states as necessary to get the lead flow...

if you are direct contracted to the carrier then I am incorrect and vesting may be a possibility. I can't imagine it even being a decision that takes more than a second to figure out (if it were me. ) I would never want reduced commissions for free leads. And I would never want to be limited to selling one company. But I guess it depends on your start up capitol and how independent you want to be.

 

[NSRH]

Thanks for your insight - you are a knowledgeable poster on this forum. I have enough start up to do whatever direction is best - but just because you have it...doesn't mean you should throw it away.

My comparison based on what the MO says - help me to understand:

TV ads w/live pre qual transfers 40/week free: 7 deals closed /$800/60% comm/20%NI/20%Per:
7x$800=$5600x.8=$4480x.8=$3584x.6=$2150 (get 75% upfront but cash flow not that important cause no leads). $2150-$150 exp = $2000/week annualized

Outbound call leads 100/week@$12 = $1200 cost: 5% closed=5 deals closed/$700/115% commission/20%NI/20%Per:
5x$700=$3500x.8=$2800x.8=$2240x115%=$2576-$1200leads=$1376/week annualized. @75% payout cash flow is $1932-$1100=$832/week
Sell 7% gets extra $1400x.8=1120x.8=$896. $1376+$896=$2,272.
Need 7% close ratio for this to be better deal...also back end is better here which for me is most important...

That being said, I believe that I read that NorthStar requires a non-compete...a non-compete for what? LOL....
I think I saw where Hakim addressed that issue saying well if you don't hurt the company or interfere or whatever blah blah then you have nothing to worry about...I'd have to look at their wording first...
Thanks for helping me walk this reasoning thru...

To be clear, North Star is NOT for everyone.

If you've sat through our webinar and spoken to a recruiter and still have apprehension, I would caution you to join.

You need to be 100% sold on our concept, or you'll always be thinking "what if?". We don't like to sell people on the opportunity. We are who we are and we are looking for like minded people.

DigitalBGA is a great place to go for a totally independent model, and by the sounds of what you're looking for, probably a better option for you specifically.

 

[NSRH]

Although I sat thru your webinar but haven't spoken to a recruiter...you are probably right. I've been an independent guy for over 15 years now - probably best to stick with the same personality in an organization...
i would have broken your cojones over the non compete anyway...

If you only knew how many people took leads they never paid for, and wrote them behind my back with another carrier you'd understand.

But I get it, Indy for 15 years and looking to get into telesales, we are not for you.

Who knows... you might even like selling over the phone... I see it all the time...

But good luck, and if I can ever be of assistance feel free to reach out!

 

[rousemark]

if you are direct contracted to the carrier then I am incorrect and vesting may be a possibility. I can't imagine it even being a decision that takes more than a second to figure out (if it were me. ) I would never want reduced commissions for free leads. And I would never want to be limited to selling one company. But I guess it depends on your start up capitol and how independent you want to be.

And, I would never want to be LOA.... No matter who the upline is.

 

[NSRH]

And, I would never want to be LOA.... No matter who the upline is.

I completely agree. Unless youre an employee, its never a good idea to go LOA.

 

[goillini52]

I'll continue to train people to run a business...

Huh...what? When your whole "downline" is captive and with your definition of "business owner"...WTF are you talkin' 'bout?