Recruiting

[Rearden]

Rirwin, it's your business.

Do what you want.

You don't need anyone's validation or approval to grow in the direction you want to go.

The biggest disadvantage to selling final expense is the low renewal business generated from personal production.

That's why I and everyone who recruits on this forum went into recruiting agents.

One can personally produce and train agents at the same time, and continue to generate high first year commission through personal production while gradually building up a passive/renewal income from downline production.

Just make sure you offer something of substance to your downline agents. There are a lot of different models that work with varying success (free leads model, high starting commission model, captive model, etc.). Figure out what suits you best and differentiates you from your competition. Then get to work building a program that attracts those agents to your offer.

As my upline and I were having a conversation about future goals, he told me to not even think of recruiting or building a team.

I've been doing this for a while now, and after breaking my foot I realized that if I want to sustain long term income it'll have to be more than just selling since an illness or something could prevent me from being out in the field.

I've done some research here and seems like lots of IMO's are against agents recruiting, is there a reason for this or is it them avoiding any competition?

 

[Matthew King]

Overall, we encourage it (to recruit, build an agency or a team) but only if the agent recruiting has experience and success under their belt already. If you feel you are ready then definitely go at it! However, somethings to be wary about and double check you are ready:

• Do you have savings in case agents roll up debt to you?
• How are you going to recruit said agents?
• What system are you going to use to contract them?
• What is your offer going to be?
• Are you going to train those agents?
• Are you going to provide them leads?
• If you train, is it going to be by phone or in person or online?
• What's the overhead going to be to do all this?
• Does your current upline have anyways to help with any of the above questions?
• And again, are you prepared when an agent rolls up 10K or more to you to pay back to the carrier.

Normally, agents want to recruit for the wrong reason. They believe (not saying you believe this but some do), a downline can be built without any worry and just rake in money. However, that's just not true. One agent can derail your entire business if it happens while you aren't prepared.

Second, an upline isn't there to just collect money. They are there to guide, mentor and develop agents. To provide support and value to the agents they have recruited. To go to bat for you when a carrier does you wrong (and it does happen).

Finally, if you decide you are ready. Then I encourage at least a one-page business plan. Just a simple plan of what you want to do, some small goals you want to hit then get out there recruiting!

 

[HoosierLife]

Just think, a week ago we couldn't have had this conversation.

I will say this, recruiting is hard work. Especially while you're still in the field. Matt makes good points.

If you want a good place to build, you will need a few things:

-Set price lead program. Leads are the lifeblood of this industry and a set price program does a number of things. With the lead deposit, it weeds out tire kickers and scammers that will roll up huge debts. It also puts agent's feet to the fire. They are "forced" to take leads each week, thus enabling their own success and your continued override. A win-win.

-Training platform. Does your IMO offer training, support, group chats, videos, tests, cheat sheets etc? You need to have all the information an agent needs to succeed easily accessible at their fingertips.

-Reports! Does your IMO offer reports to be able to track your agents success? Premium Per Lead, closing %, the number of leads they've taken etc. Without these reports you will have no idea if an agent is slipping until it is too late.

-**Recruiting Department**. Does your IMO have ways of indefinitely supplying you a steady stream of recruit prospects? Can they do this in an automated way? All while you are in the field selling? If not, you are going to have to spend hundreds of hours working on videos, SEO, posting on social media in hopes that agents will see your content and come to you. This is important either way, but you can grow successfully using Permission Based selling techniques where interested prospects are COMING TO YOU.

-Back Office Staff. There's a lot of work to be done when you recruit an agent. Getting them contracted, getting their leads and having them assigned each week, troubleshooting, underwriting questions and host of other admin type work. It will bog you down very quickly if you don't have a team of professionals behind you.

-Ability to grow. Can you keep growing all the way to the IMO level? Or are you stuck under some middle man? Does your IMO have the ability to pass any one in your hierarchy as you grow, if needed?

-Builder Training. Everyone needs a mentor. Are you going to be working with someone that can teach you the ins and outs of building, so that you don't repeat their mistakes and can now just replicate their successes. Is there additional training by seasoned recruiters and buliders to help you grow your agency quickly and efficiently?

When I left FEX, I had no desire to build an agency. It was not until I joined EFES and saw all they had to offer that I decided to give agency building a whirl. It's hard work, but with the right tools you WILL be successful.

Feel free to reach out to me if you have any questions. My contact info is in my signature.

 

[PA Bill]

I agree with Matthew. Prove to yourself and others that you can do it yourself. An upline with credibility will command trust and respect from their "crew". This will inspire agents to not only sign with you, but stay with you. People are attracted to winners. How can you be a winner if you've never won?

p.s.- Don't underestimate the "cult of personality"! Every big agency I've seen was headed by someone who had the "chops". And "chops" ain't something you can fake. Agents, like kids and ballplayers, can smell a phony a mile away.

 

[NSRH]

Rirwin, it's your business.

Do what you want.

You don't need anyone's validation or approval to grow in the direction you want to go.

The biggest disadvantage to selling final expense is the low renewal business generated from personal production.

That's why I and everyone who recruits on this forum went into recruiting agents.

One can personally produce and train agents at the same time, and continue to generate high first year commission through personal production while gradually building up a passive/renewal income from downline production.

Just make sure you offer something of substance to your downline agents. There are a lot of different models that work with varying success (free leads model, high starting commission model, captive model, etc.). Figure out what suits you best and differentiates you from your competition. Then get to work building a program that attracts those agents to your offer.

I've seen you reference this a couple of times. Do you not believe that an agent selling full time for 5 to 10 years couldnt generate a significant income stream based solely on renewals?

Also, the reason why agents become recruiters is not because of the renewals, its because they get burnt out. This is a tough job, and very few last the 5 year mark, full time.

 

[HoosierLife]

I agree with Matthew. Prove to yourself and others that you can do it yourself. An upline with credibility will command trust and respect from their "crew". This will inspire agents to not only sign with you, but stay with you. People are attracted to winners. How can you be a winner if you've never won?

p.s.- Don't underestimate the "cult of personality"! Every big agency I've seen was headed by someone who had the "chops". And "chops" ain't something you can fake. Agents, like kids and ballplayers, can smell a phony a mile away.

That's a good point. Successful agents will always make the best agency builders. We have so much competition, from people who have been in the business for 3 months or less.

Groups like Family First Life, NAA, Symmetry, Lincoln Heritage etc are full of brand new agency managers.

I'm talking to a new Symmetry agent right now. The guy is killing it. But he's at a 60% and 48% on his Final Expense biz. He's excited to go hear John Maxwell speak at their convention. I told him that as he listens, just keep in mind that he's being paid for by half your commissions being taken away haha!

 

[Rearden]

You answered your own question.

A had a conversation with a final expense company that you've all known and heard of that was thrilled with an 8th year 20% persistency. That's aggregate.

Added, you'll have to quantify your question further and define what "significant" is.

I tell every new recruit in this business that final expense is not a renewal driven business, and not to expect renewals to be a significant source of income in future years.

I've seen you reference this a couple of times. Do you not believe that an agent selling full time for 5 to 10 years couldnt generate a significant income stream based solely on renewals?

Also, the reason why agents become recruiters is not because of the renewals, its because they get burnt out. This is a tough job, and very few last the 5 year mark, full time.

 

[NSRH]

That's a good point. Successful agents will always make the best agency builders. We have so much competition, from people who have been in the business for 3 months or less.

Groups like Family First Life, NAA, Symmetry, Lincoln Heritage etc are full of brand new agency managers.

I'm talking to a new Symmetry agent right now. The guy is killing it. But he's at a 60% and 48% on his Final Expense biz. He's excited to go hear John Maxwell speak at their convention. I told him that as he listens, just keep in mind that he's being paid for by half your commissions being taken away haha!

They actually charge their agents for their convention.

So the 60% (and still having to pay for leads) is just simply a bad deal for an agent.

 

[Ryan Caras]

As my upline and I were having a conversation about future goals, he told me to not even think of recruiting or building a team.

I've been doing this for a while now, and after breaking my foot I realized that if I want to sustain long term income it'll have to be more than just selling since an illness or something could prevent me from being out in the field.

I've done some research here and seems like lots of IMO's are against agents recruiting, is there a reason for this or is it them avoiding any competition?

i always talk to whomever wants to build an agency...

i explain to them the good the bad and the ugly that comes with growing a team...

as long as you know what your getting into then i say go for it...

if you don't know what the good the bad and the ugly is in growing make sure someone explains that first...

and to answer that last question of why some IMO's are against growing, i firmly believe the answer is because they don't have a platform for that person to grow

RC

 

[HoosierLife]

They actually charge their agents for their convention.

So the 60% (and still having to pay for leads) is just simply a bad deal for an agent.

Oh didn't realize that haha. I know one of their mid-level agency owners. He's a hard worker and writes a lot of biz, but he even admits he's drinking the koolaid something fierce.