PHP goes Public ---- HOW ?

[Mike Siegal]

Somewhat familiar with this Organization and its founder...but never understood HOW they got Public Funding to expanding Nationally?

Apparently, they modeled 'AL Williams' and focus marketed the Latin Market. (that's easy enough)

BUT 'How were they able to go public?'

Anyone know how they were able to pull-this-off ?

LINK

Thoughts / Opinions

???

 

[DHK]

All I can suggest is that they are known for offering 'equity' in the company's growth to all their associates, so there may be a connection there.

 

[Mike Siegal]

All I can suggest is that they are known for offering 'equity' in the company's growth to all their associates, so there may be a connection there.

Hi David...

That's good for employee retention, but makes NO SENSE for a Cash-flow model (which is usually how a company gets funded to go public)...

Were they generating that much Cash-flow ?

 

[Allen Trent]

HOW they got Public Funding to expanding Nationally?

I don't think they did. I think they are privately owned & took on additional equity or debt financing from other privately held companies.

 

[Real_AMG]

They are a wildly profitable company. An agency we headhunted from them told us that the company keeps an average of 78 percent on the entire distribution.

 

[suranceman]

They are a wildly profitable company. An agency we headhunted from them told us that the company keeps an average of 78 percent on the entire distribution.

That doesn't surprise me.

Their whole operation is to push the dream via recruiting. People are not told or taught to make money via selling insurance. It's taught via recruitment.

Look at their big events. They have a ton of motivational speakers. There isn't much discussion on how to sell insurance or get new clients (not agents).

Basically, a new recruit comes on board and they buy coverage for themself and sell to any friends and family who are willing. After that, the only way the agent will make money one day is by building a huge team.

The whole operation is a joke. Oh and the comp for agents is absolutely embarrassing.

Here is the pdf about the opportunity. It shows an example of an agent helping 1 family per week at a 40% contract.

 

[Real_AMG]

That doesn't surprise me.

Their whole operation is to push the dream via recruiting. People are not told or taught to make money via selling insurance. It's taught via recruitment.

Look at their big events. They have a ton of motivational speakers. There isn't much discussion on how to sell insurance or get new clients (not agents).

Basically, a new recruit comes on board and they buy coverage for themself and sell to any friends and family who are willing. After that, the only way the agent will make money one day is by building a huge team.

The whole operation is a joke. Oh and the comp for agents is absolutely embarrassing.

Here is their pdf about the opportunity. It shows an example of an agent helping 1 family per week at a 40% contract.

For the life of me I do not understand how they convince agents that their business model is a good idea. In my experience as an MGA, PHP agents are the least recruitable of any IMO.

 

[suranceman]

For the life of me I do not understand how they convince agents that their business model is a good idea. In my experience as an MGA, PHP agents are the least recruitable of any IMO.

They don't know any better. And they don't know what they don't know about insurance.

They have no clue that street comp is 100+

Plus like most MLM's they are so enamored by the prospect of making it big that they don't consider much else.

 

[DHK]

That article was written in 2017.

Expansion just means taking on partners (equity) or debt.

PHP is not a publicly traded company (yet?).

They primarily sell IUL, so large overrides there with a smaller commission for newer associates.

 

[DHK]

Btw, last I checked, only Primerica is a publicly traded company (PRI) and they're also a true insurance company that issues their own policies, not just a marketing agency.

WFG is not publicly traded. PHP certainly isn't either.