Roll Up Debt & High Commissions-not what it seems?

[Sylver Gallardo]

Hello.
I am new to the life broker insurance industry. I got contracted with Family First Life in the beginning of the year. Everything seemed great at first, but I have come to find out things I wish were disclosed to me prior. 1) commissions aren’t as high as they seem. Even at a 125% commission, a carrier only pays out 100% until you reach your quota. 2) roll up debt. My question is if anyone here is building an agency and is acquiring this agent roll up debt simultaneously. It’s very hard for me to wrap my head around having perfect credit to owing money because of people who leave the industry and get charge backs they don’t pay off. I mean, imagine going into something with no debt and now you have debt. And I’m sure it’s bound to happen as your agency grows. Idk if I should ask if that’s something that you have to deal with and you just roll with the punches or if this is not okay.
As I’m reflecting on what I really want, I think I just want to do my own thing and not build an agency, but they really sell you on building one.
Another thing I’d like to mention and ask if it’s normal to get a lot of wrong numbers, wrong addresses, and people who never requested info on life insurance. I feel the lead crm sells multiples of the same leads. For example, the instant internet leads go into the cherry picked 1 month leads and then to the 3 month. So essentially, I end up buying the same lead on several different occasions. I figure, just buy the older ones, but they really push those instants. It seems like in a mater of a couple of weeks, they go old. I can’t help but think that the company benefits somehow from the purchases of those leads.

Lastly, training is not that great other than videos. They kind of brush you off when you ask about products because apparently the product isn’t important. Dialing is what’s important. I agree to an extent, but there’s not a lot of drilling on dialing like I’d imagine. Just scripts to follow. So if you get thrown off by objections, you just missed your shot. This is where a good upline comes to play a very important role in your success. Especially when you need to be a good upline yourself. Who are you going to learn from if you don’t have a present one.
Can anyone help in regards to this company? I’d appreciate if you actually worked with them for credibility.

 

[TRG1225]

Hello.
I am new to the life broker insurance industry. I got contracted with Family First Life in the beginning of the year. Everything seemed great at first, but I have come to find out things I wish were disclosed to me prior. 1) commissions aren’t as high as they seem. Even at a 125% commission, a carrier only pays out 100% until you reach your quota. 2) roll up debt. My question is if anyone here is building an agency and is acquiring this agent roll up debt simultaneously. It’s very hard for me to wrap my head around having perfect credit to owing money because of people who leave the industry and get charge backs they don’t pay off. I mean, imagine going into something with no debt and now you have debt. And I’m sure it’s bound to happen as your agency grows. Idk if I should ask if that’s something that you have to deal with and you just roll with the punches or if this is not okay.
As I’m reflecting on what I really want, I think I just want to do my own thing and not build an agency, but they really sell you on building one.
Another thing I’d like to mention and ask if it’s normal to get a lot of wrong numbers, wrong addresses, and people who never requested info on life insurance. I feel the lead crm sells multiples of the same leads. For example, the instant internet leads go into the cherry picked 1 month leads and then to the 3 month. So essentially, I end up buying the same lead on several different occasions. I figure, just buy the older ones, but they really push those instants. It seems like in a mater of a couple of weeks, they go old. I can’t help but think that the company benefits somehow from the purchases of those leads.

Lastly, training is not that great other than videos. They kind of brush you off when you ask about products because apparently the product isn’t important. Dialing is what’s important. I agree to an extent, but there’s not a lot of drilling on dialing like I’d imagine. Just scripts to follow. So if you get thrown off by objections, you just missed your shot. This is where a good upline comes to play a very important role in your success. Especially when you need to be a good upline yourself. Who are you going to learn from if you don’t have a present one.
Can anyone help in regards to this company? I’d appreciate if you actually worked with them for credibility.

Sorry to hear that. Sounds like they really screwed you. While I'm new to the independent side, roll up debt seems to just be something that comes with the business. Another reason why it pays to build slowly with people you trust are not only capable of doing the work, but fiscally responsible. I have three agents, and all of them I would say are at least as finally stable as myself, if not more.

That's a real downside to FFL's model of pushing you to grow an agency like that. That lead thing is really shady too.

If I were you, I'd probably do the following:

1. Don't add anymore carrier contracts through FFL

2. Call up any current carriers you have a contract with through FFL and find out how long you would have to wait once declaring intent to transfer IMO's. Also, find out if they allow contracts with multiple IMO's.

3. Research the forum to find IMO options that might be a better fit for you. There's some solid guys here.

 

[Cornelius]

No business is perfect and business has business issues. As for roll ups there's a good chance you can consider going the legal route or at least find out what your options are.

Consider getting a LegalShield membership and attaching a small business plan. Speak with an Attorney to find out what your options are as far as recovery.

Or just go it alone and find an Attorney on your own. Here's a hard lesson learned. No company can and will tell agents everything. It's a learned process.

One scene in the movie that stuck with me was when Bud Fox was telling his manager that a client backed out on him. The manager told him to get back on the phone because someone has to pay and it won't be him = Roll Up..

Sit down and decide what you want to do. If leads are an issue call the lead department and schedule a call. As for compensation just consider carriers do pay out different amounts. Consider something like a 10 yr term compared to a 20yr term commission.

As for product training carriers have trainings and consider taking a look at the Advance Marketing side where you can get trainings on IUL and FIA.

Wish you the best.

 

[DayTimer]

1) commissions aren’t as high as they seem. Even at a 125% commission, a carrier only pays out 100% until you reach your quota.

See, this is the problem with FFL as this is untrue: If you are on a 125% commission, that is exactly what the carrier pays you. Now, most carriers will limit the advance to 75% of that first year commission, but it is 125%. I have several 125% contracts and even if I sell just one or tow policies with those companies this year, they will pay me 125% of the first year premium.

I am new to the life broker insurance industry ... I have come to find out things I wish were disclosed to me prior ... roll up debt. My question is if anyone here is building an agency and is acquiring this agent roll up debt simultaneously.

If you recruit you sign for the debt of your agents.

Again, this is the problem with FFL: You are new. You hjave no business recruiting agents. And yet I have seen FFL videos on youtube where agents were admitting they recruited new agents before they themselves were licensed to sell insurance. I can't even imagine that that is legal.

None of which helps you at this point, but it is a well-deserved rant, imo lol.

If you have debt that has been rolled to you, the first thing you need to make your mind up to do is get to work and write enough business to cover that debt. And you must do your level best to write good business that will stick. And any policies that are falling off the books, whether your own or written by your down line agents you should get out and visit and try to save.

 

[Sylver Gallardo]

Okay. So you aren’t with FFL and you have such contract? Mine is if I write certain policies.

 

[DayTimer]

Okay. So you aren’t with FFL and you have such contract? Mine is if I write certain policies.

I presume you are speaking to me.

Commission is often product specific. For example, you might be at 125% on MOO Living Promise, but 130% on MOO Term Life Express.

But that contract you have is FFL telling you when you will be moved UP to higher levels. MOO did not write that contract. Americo pays everybody 125% on the Eagle FE product UNLESS you are with FFL or some other IMO that starts agents lower than street.

 

[Newby]

FFL is known to give lower commission contracts to new agents than what the “name” of the level is. For instance on their 110% commission level their agents are at 90% with most of their final expense companies.
But they do claim that they will release so you can just get a release and go elsewhere and get a REAL 110% or higher on those companies.
The reason they do that is because a certain % of agents will put up with it and accept it.
Take a look at the FexContracting.com website. There is a lot of information there to help you not fall into those kind of traps and how easy it is to start fresh elsewhere.

 

[jasperjohns]

Sylver, I have heard a good deal about FFL recently and not a single thing has been good. Outfits like FFL are the reason so many people fail in this business. Everything Daytimer has said above is true. A 125 level pays you 125%. New agents should not be training and recruiting as they don’t even know what they don’t know. This is usually an indication of a crappy agency/company as a agent with 1 year experience is considered tenured because most agents leave before they reach a year so anyone with over a year is considered a savy veteran fit to train. Lots of IMOs on this forum that would offer you so much more AND a contract that actually matches the level.
Good luck

 

[Duane Freeman]

Hello.
I am new to the life broker insurance industry. I got contracted with Family First Life in the beginning of the year. Everything seemed great at first, but I have come to find out things I wish were disclosed to me prior. 1) commissions aren’t as high as they seem. Even at a 125% commission, a carrier only pays out 100% until you reach your quota. 2) roll up debt. My question is if anyone here is building an agency and is acquiring this agent roll up debt simultaneously. It’s very hard for me to wrap my head around having perfect credit to owing money because of people who leave the industry and get charge backs they don’t pay off. I mean, imagine going into something with no debt and now you have debt. And I’m sure it’s bound to happen as your agency grows. Idk if I should ask if that’s something that you have to deal with and you just roll with the punches or if this is not okay.
As I’m reflecting on what I really want, I think I just want to do my own thing and not build an agency, but they really sell you on building one.
Another thing I’d like to mention and ask if it’s normal to get a lot of wrong numbers, wrong addresses, and people who never requested info on life insurance. I feel the lead crm sells multiples of the same leads. For example, the instant internet leads go into the cherry picked 1 month leads and then to the 3 month. So essentially, I end up buying the same lead on several different occasions. I figure, just buy the older ones, but they really push those instants. It seems like in a mater of a couple of weeks, they go old. I can’t help but think that the company benefits somehow from the purchases of those leads.

Lastly, training is not that great other than videos. They kind of brush you off when you ask about products because apparently the product isn’t important. Dialing is what’s important. I agree to an extent, but there’s not a lot of drilling on dialing like I’d imagine. Just scripts to follow. So if you get thrown off by objections, you just missed your shot. This is where a good upline comes to play a very important role in your success. Especially when you need to be a good upline yourself. Who are you going to learn from if you don’t have a present one.
Can anyone help in regards to this company? I’d appreciate if you actually worked with them for credibility.

I know for a fact that the "Instant Internet Life Leads" are not exclusive and are just shared resold leads amongst the agents. They are making a good amount of money off those leads. If you are looking to generate your own "Exclusive" leads, I have a Facebook group with step-by-step videos on how to set up a lead system for yourself. Facebook Groups

I started with them, and the guy who recruited us is no longer friends with my wife and I because we decided to write with other carriers. This guy had no underwriting expertise, besides using Americo Instant decision. If that didn't work he would say go AIG. Awful advice as an independent agent. Prior to FFL, my wife knew this guys for years prior to him becoming an agent with FFL. He was so brainwashed, that he was willing to cut off the friendship because we decided to go with better carriers.

 

[Sylver Gallardo]

Sylver, I have heard a good deal about FFL recently and not a single thing has been good. Outfits like FFL are the reason so many people fail in this business. Everything Daytimer has said above is true. A 125 level pays you 125%. New agents should not be training and recruiting as they don’t even know what they don’t know. This is usually an indication of a crappy agency/company as a agent with 1 year experience is considered tenured because most agents leave before they reach a year so anyone with over a year is considered a savy veteran fit to train. Lots of IMOs on this forum that would offer you so much more AND a contract that actually matches the level.
Good luck

thank you! Yes. I actually sold an additional policy to a client. When I showed up, she showed me the business card of not only an FFL agent, but someone in my own group. That’s when I figured it out. It was a 3 month old Internet lead and the person who got to her first bought the lead when it was new. I bought it at $2 she bought it at $11. But when I ask, they keep denying that they are resold within FFL.

wow from AMERICO to AIG?! I have done AMERICO to Aetna to prosperity to moo.