The Industry is Changing Quickly

[Baseball7]

It's a Large Facebook group with about 5000 members

 

[NSRH]

TTC = ?

You need a Facebook to understand...

 

[goillini52]

You need a Facebook to understand...

Haha, I spend about 2 minutes a day on there.

 

[Newby]

It's a Large Facebook group with about 5000 members

The DPOG? That's surprising!

I never thought the Doberman Pinchers Owners Group would take the cash.

 

[Newby]

I watched this play out in the Funeral Home and Cemetery industry back about 20 years ago. SCI (Dignity) and the Lowen Group were buying up funeral homes and cemeteries left and right. Paying top dollar for them too. Everyone said, "Not me! I'm not selling to the devil. " But one by one they did sell. About 30% of the entire industry.

But that didn't end well. Most of them sold for stock, not cash. They got a lot more in stock. At least on paper. Then one week the stock plummeted from $78 per share to $2 per share. A month later Lowen declared bankruptcy. SCI stock was less than $1. They sold off their life insurance company (American Memorial) to Fortis (later renamed Assurant) and their casket company (Marcallas) to Batesville Casket Company to stay afloat. I don't know if their stock ever made it back to it's glory days. I sold mine at $2 and have never looked at it again.

Hopefully this ends better. I have a few friends in the industry that have sold. They feel good about it so far.

 

[damadcrapper]

So who is/are the next big IMOs to sign up?

 

[goillini52]

So who is/are the next big IMOs to sign up?

I hear that Gordon Marketing and 360 are next. Ramiz told me.

 

[GMDM100k]

Integrity is not contracted with any carriers. They're not buying these agencies and merging everyone together. They're basically buying the imo owners check.

The carriers are not worried. If I got bought out by them nothing would change for my agency. Everything stays the exact same. They don't get overrides.

If the carrier really was worried they would just cut my contract. And put all my agents direct. This could happen to any imo at any time. And it's happened plenty throughout my time in this business. And integrity wouldn't even care.

Integrity is doing something new. But what they're not doing is taking over all of us life insurance agents. It's not going to give them any bargaining power at all. Not with the carrier.

What it is going to do is make a ton of money for everyone. Make all the people involved super rich.

All those commissions coming into them can be invested just like the carriers do with the premiums they collect. All the guys that are having their renewals sent to them for an over all percentage are going to make out big.

Integrity doesn't care about how much business anyone writes from now on. They don't need the overrides. All they cared about what your renewals and how much you would be paid from it. And where to invest it for the biggest profit.

The industry is changing. But it's not consolidating like the way you're thinking. It can't. It's too easy for the carriers to replace imos. All they'd have to do is offer the top contact to the next manager in line

 

[HoosierLife]

Integrity is not contracted with any carriers. They're not buying these agencies and merging everyone together. They're basically buying the imo owners check.

The carriers are not worried. If I got bought out by them nothing would change for my agency. Everything stays the exact same. They don't get overrides.

If the carrier really was worried they would just cut my contract. And put all my agents direct. This could happen to any imo at any time. And it's happened plenty throughout my time in this business. And integrity wouldn't even care.

Integrity is doing something new. But what they're not doing is taking over all of us life insurance agents. It's not going to give them any bargaining power at all. Not with the carrier.

What it is going to do is make a ton of money for everyone. Make all the people involved super rich.

All those commissions coming into them can be invested just like the carriers do with the premiums they collect. All the guys that are having their renewals sent to them for an over all percentage are going to make out big.

Integrity doesn't care about how much business anyone writes from now on. They don't need the overrides. All they cared about what your renewals and how much you would be paid from it. And where to invest it for the biggest profit.

The industry is changing. But it's not consolidating like the way you're thinking. It can't. It's too easy for the carriers to replace imos. All they'd have to do is offer the top contact to the next manager in line

Protecting the sanctity of the hierarchy is a big deal.

Though I don't know if you're correct about comp. I've spoken to some of the guys at American Senior Benefits, who used to get 50-60% that are now getting 100%+ because of the "levels they share with Integrity," which is their words not mine.

 

[GMDM100k]

Protecting the sanctity of the hierarchy is a big deal.

Though I don't know if you're correct about comp. I've spoken to some of the guys at American Senior Benefits, who used to get 50-60% that are now getting 100%+ because of the "levels they share with Integrity," which is their words not mine.

I don't know if the hierarchy can be protected. I wonder what would happen if every carrier offered efes managers the imo lever contact? How many managers would take it? With my imo it's broken into 13 agencies. If each on got offered the same contract at the imo level I wonder how many would branch off. How loyal would any manager be to any imo?

I can see how some comp might be raised. If the guy on top is taking such a big spread. And doesn't need it anymore because of the commission share going on with Integrity, they might raise contracts. None of the carriers I've talked to have mentioned integrity having a contract. And I've never seen them on a newsletter.

The only thing I have ever heard from a carrier about integrity is "well, we can't control who you want us to send your check to"