The 'Corrupt Agency Model?'

[Tim Resnick]

Hi Friends,

How's does one avoid working in the 'Corrupt Ins Agency Model?'

What i mean by this is the following;

What i've found out 'newbe' time working as a LH agent, ARE Insurance Agencies running phone rooms who want to 'Rope' in newly licensed agents (get them to sign 'non competes' (no release) and EXPECT the agt to 'work as their Phone Jockey' forever). When questioned, they will confess you can get released after 6 mths if you are not happy---. (so basically, you are locked out of the business til then).

I see these ads all the time and MOSTLY Selling Senior Insurance Plans (MAPD, Med Sups, Final Expense, etc).

This MODEL, basically turns a worthy person into a Soul-less Slave. I see this all over the place and 'MAN is it discouraging.' (Brokerage Co's., will keep your commissions, not pay you (when and if you leave)---most agents leave within a few months, or maybe last 1 yr (in best case scenarios).

What CAN an agent do to work within a group of other agents to gain experience? (without getting 'Raped?') I like the idea of working in team environment. I don't really like the lone wolf gig (for me, its more fun when you have team mates or co-workers, partners, SUPPORT MEMBERS, etc).

I know there are pros and cons to everything in life but how does one avoid getting into this trap?

What's the Solution?

Please help...

Thanks for your constructive input...


~T

 

[goillini52]

Hi Friends,

How's does one avoid working in the 'Corrupt Ins Agency Model?'

What i mean by this is the following;

What i've found out 'newbe' time working as a LH agent, ARE Insurance Agencies running phone rooms who want to 'Rope' in newly licensed agents (get them to sign 'non competes' (no release) and EXPECT the agt to 'work as their Phone Jockey' forever). When questioned, they will confess you can get released after 6 mths if you are not happy---. (so basically, you are locked out of the business til then).

I see these ads all the time and MOSTLY Selling Senior Insurance Plans (MAPD, Med Sups, Final Expense, etc).

This MODEL, basically turns a worthy person into a Soul-less Slave. I see this all over the place and 'MAN is it discouraging.' (Brokerage Co's., will keep your commissions, not pay you (when and if you leave)---most agents leave within a few months, or maybe last 1 yr (in best case scenarios).

What CAN an agent do to work within a group of other agents to gain experience? (without getting 'Raped?') I like the idea of working in team environment. I don't really like the lone wolf gig (for me, its more fun when you have team mates or co-workers, partners, SUPPORT MEMBERS, etc).

I know there are pros and cons to everything in life but how does one avoid getting into this trap?

What's the Solution?

Please help...

Thanks for your constructive input...


~T

You have to "do your homework" and make sure that you get a signed release before you sign contracts. That way if the new FMO doesn't work out, you're free to move on.

I'm sure you'll get a lot of PM's now. Ask yourself why they aren't making their offers out in the open where others can see. Be careful, there are so many snakes in this business. Good luck.

 

[Bevo]

What's the Solution?




~T

Part of the solution is to keep in mind that there is NO free lunch. Too many people come on here (not saying you're one of them) wanting it all handed to them down to the last drop, unwilling to sacrifice anything themselves.

That being said, agency owners have every right to run their business anyway they choose as they are fronting all the expenses in many cases. Many of them cross the line, and some go out of their way to really help people. I went out of my way to help agents when I first started, only to get completely screwed over by many of them.

So my suggestion is be prepared to give up some things if you're wanting top notch training, leads, CRM, support...etc. It's only fair.

Otherwise do all the due diligence and climb the learning curve yourself, then you deserve 100% of the prize.

 

[Tim Resnick]

Part of the solution is to keep in mind that there is NO free lunch. Too many people come on here (not saying you're one of them) wanting it all handed to them down to the last drop, unwilling to sacrifice anything themselves.

That being said, agency owners have every right to run their business anyway they choose as they are fronting all the expenses in many cases. Many of them cross the line, and some go out of their way to really help people. I went out of my way to help agents when I first started, only to get completely screwed over by many of them.

So my suggestion is be prepared to give up some things if you're wanting top notch training, leads, CRM, support...etc. It's only fair.

Otherwise do all the due diligence and climb the learning curve yourself, then you deserve 100% of the prize.

Thanks for commenting.

'No Free lunch'---yep, i get that.

I guess when expectations don't meet reality (is the problem). Agencies Promise the moon (that's when i get suspicious).

How did you as an Agency Owner get screwed?

You hired agents, and the check's first came to you...Not understanding how an agency would get screwed over by an agent?

 

[JimmyCrappedCorn]

Thanks for commenting.

'No Free lunch'---yep, i get that.

I guess when expectations don't meet reality (is the problem). Agencies Promise the moon (that's when i get suspicious).

How did you as an Agency Owner get screwed?

You hired agents, and the check's first came to you...Not understanding how an agency would get screwed over by an agent?

Most of these agency owners and FMO'S are like Tony Soprano. In their own minds they are great wonderful caring people out to help all. In reality they are cold ruthless sociopaths.

 

[Bevo]

Thanks for commenting.

'No Free lunch'---yep, i get that.

I guess when expectations don't meet reality (is the problem). Agencies Promise the moon (that's when i get suspicious).

How did you as an Agency Owner get screwed?

You hired agents, and the check's first came to you...Not understanding how an agency would get screwed over by an agent?

It's a tough balance just starting out. I'm one of the few agencies that actually pays my agents residuals. They get the best leads, full admin support, CRM, all they have to do is call, close, rinse and repeat. In return they're able to write in upwards of 500-700+ policies per year each, with zero expenses. In exchange for all my costs, risk, and responsibilities they take less comp. Win-Win 10X for everyone.

I also, was a top producer in the country writing almost 1000 policies by phone my first year, with NO residuals paid to me. So I know how it feels. Many people cried that I got screwed by not getting residuals. Well I didn't have to front any lead money or have expenses, and fully accepted the deal. But I was obviously able to make a ton of calls which led to a great education and form my own successful sales process from this. So I know both sides very well. Then again I took full advantage of the opportunity when I went on my own.

That being said, if my CPA wasn't so darn low I'd never pay this way as an agency owner, ever. I also wouldn't screw people though, in fact I'd stay solo. I understand you not wanting to get raped, but this is a classic "Low Risk will always equal Low Reward" type of situation. The agency owner puts up some, most, or all the risk. So you'll have to decide what you're comfortable giving up to be a part of that, in return for training and experience. I don't have many agents, for the exact issues you're bringing up. I'd rather pay more, get top quality people who have no intention or want to go on their own, and we all win.

Keep in mind that many agency owners are basically training their own competition though. Not a reason to put handcuffs on people, and many go to the extreme to compensate for this. In reality many really have very little to give in the first place, other than the cash to put up for leads. Quality varying of course..lol

I'd suggest reading everything possible on this forum, design a game plan for marketing especially, then formulate a great sales process, (We're 100% by phone with now a little local crowd sprinkled if they hear about us by accident. Many people love F2F but I'd never change) and hopefully you've got cash reserves so you can execute your plan while ironing out mistakes made along the way, and there will be many (and should be).

Long story on me getting screwed and not worth talking about here. Happened years ago and I assure you won't ever happen again. It did help me formulate my mindset with agents though.

Selling Med supps is EASY. Getting people to sell to is the hard part. Figure that out, and you're golden.

 

[joe92275]

If an agency creates a business model where they ask for a non compete and you sign it, thats on you not the agency. This is the land of the free....you can run your business any way you want (within the rules) and if an agent signs on, bless their heart. Best you can do is what the others have said.....do your homework. Watch out for those call centers too, especially in Florida....so many unlicensed agents selling too...I cannot believe in todays day and age none of these rooms get shut down....especially the medicare rooms...how do the carriers not realize they are cold calling the do not call list? Telling them they are from the Medicare Enrollment Center? How in 2018 are these places not being shut down or these uplines not losing their contracts?

 

[leevena]

Corrupt agency model, soulless slave, and rape. Pretty strong beliefs and harsh words for a self-described newbie.

Just as in life, there are always good and bad, and yes some agencies may be a poor choice for you. But there are many good options for you out there, including striking out on your own. But keep in mind, it is always your choice. If you are in an agency situation that is truly like you described, it is your fault. If you are not, why are you opining about it?

 

[JimmyCrappedCorn]

How in 2018 are these places not being shut down or these uplines not losing their contracts?

It always has been the wild wild west out there and it still is. Not likely its ever going to change.

 

[kgmom219]

Selling Med supps is EASY. Getting people to sell to is the hard part. Figure that out, and you're golden.

THIS.

And honestly, I don't think you will be getting screwed. You have to learn somehow. Take the year, learn the biz and walk away. Look at it as a paid internship.

Then be ready to starve as you start your own business.