Trading Training & Leads for % - What's Fair?

[Logos1]

This is a variation on a theme that has been discussed here in various ways but I still feel I don't have a good handle on it. I have previous experience selling group (and a little individual) health but haven't been actively using my license for the past 2 years.

After 2 relatively unsatisfying sales jobs that provided a base salary, I'm strongly considering selling FE and (eventually) other senior products. I'm a pretty quick study and understand insurance basics reasonably well but could use some initial support and training (as well as good leads) to get moving. From what I've read, Securus and EFES seem to provide relatively good contracts and support, though you pay for the support through reduced contracts.

I'm wondering if I need to go that route or if I can get what I need from sites like finalexpense101 and hack out my own contracts. I'm also meeting Monday with a local agent whose willing to mentor me some again, in exchange for some yield.

Thanks in advance for your responses.

 

[Rearden]

Can you honestly one-call close?

Can you set appointments?

Do you have $5000+ to comfortably lose on investing in your own mailing campaign?

If not, I suggest EFES if you don't have any connections at Securus.

If you DO have connections at Securus, consider them equally as well. Otherwise, you're liable to be 4th in a downline and have some flunky as a manager who wants to build a team but is incapable of training.

 

[Todd King]

$5000+ huh? Really? That may be a bit of a stretch, don't you think?

 

[Rearden]

I agree, Todd. But allow me to explain.

If you do your own mailers... and you're TRULY committed... expect to drop around $800-$1000 per WEEK in mail to get 20-30 leads a week (depends on the mailer, of course).

It conservatively takes 4 weeks to get back mail, and another 30 days to get paid if you're paid on draft (the smart way).

So, you don't cash flow conservatively for 2 months, while all that money is invested in mailers.

So, in the best case scenario, if you were dropping $800 in mail weekly, that gives you 6 weeks of mail before you hit $5000.

Also you must count in the definite probability of you mailing into wrong areas... dropping right behind somebody else... adjusting to the learning curve...

With all that said, that's the major advantage EFES has -- they bill you 10 days after you receive leads. That's powerful for the hard working agent who doesn't have the capital necessary to get rolling himself.

 

[Todd King]

So, bottom line here is that you are going to save yourself 10 days and maybe just a few bucks because the leads are subsidized a little.

 

[Tearmann]

This is a variation on a theme that has been discussed here in various ways but I still feel I don't have a good handle on it. I have previous experience selling group (and a little individual) health but haven't been actively using my license for the past 2 years.

After 2 relatively unsatisfying sales jobs that provided a base salary, I'm strongly considering selling FE and (eventually) other senior products. I'm a pretty quick study and understand insurance basics reasonably well but could use some initial support and training (as well as good leads) to get moving. From what I've read, Securus and EFES seem to provide relatively good contracts and support, though you pay for the support through reduced contracts.

I'm wondering if I need to go that route or if I can get what I need from sites like finalexpense101 and hack out my own contracts. I'm also meeting Monday with a local agent whose willing to mentor me some again, in exchange for some yield.

Thanks in advance for your responses.

The question of giving up a few points in contracting vs. lead quality and training comes up all to often with FE agents. It seems some if not most boost about the size contract they can get or have already but, are unwilling to take a step back to receive quality leads and the training they truely need to sell more.

What good does a contract for 120 or 130 points do if you cannot get in front of someone or when you do you cannot close the sale. The most successful agents earned the high contracts they receive because they paid their dues and leaned, working their way up to those contracts.

Trust me in the long run taking a step back for quality leads, training and support will be well worth it for your career. I would caution going with Securus & EFES those big boys may not want to give you a release from your contracts when you decide to move on. There are many threads in this forum that speak to their training & leads...I would read those first.

As to lead cost...there are alternatives to direct mail to help with cash flow issues until you get yourself up and running. Meaning once you're able to close more deals and make better appointments to reduce your out of pocket expense for direct mail.

Although the mentioned $5000 out-of-pocket expense for doing your own mailer is about right on, there are other direct mail companies out there that maybe less expensive but, not by much. You will have at least three weeks of cost into the mailers before you start seeing a return. Depending on your carrier contracts and how you will be paid you can add that time before you receive commission dollar one.

 

[jdeasy]

So, bottom line here is that you are going to save yourself 10 days and maybe just a few bucks because the leads are subsidized a little.

That's pretty fuzzy math right there. With EFES they would only pay for the leads not for mailings. Plus they would not pay for the leads until 10 days after receiving them. That's not really a big plus because once you start paying for leads you will have a lead bill every week. But, you won't be out $1000's upfront on leads.

In most cases it's better to do it all yourself if you can. Meaning if you have the skills to do the selling, the mailings, the contacts at the companies, etc.

I say in most cases because in some cases it is still better to be with someone like EFES even if you do know how to do everything by yourself. My case, for example, I do know how to handle it all myself and I have done it all by myself at one point or another. I could not generate the same number of leads at the cost that I pay EFES. That's not even taking into account that my leads from EFES are all in the same county or zip code when I get them. I'm just talking pure cost.

Nor could the difference be made up in higher commissions. The returns are really bad here. EFES is thrilled when they can get .07% return in one of my areas. Many are .04%.

If I were in an area that returned 1.5% or more I would look strongly at doing my own mail again.

Of course I'm at the top levels with EFES. My contracts are all 100% or more and I'm at the lowest lead cost possible with them. You do have earn your way to those levels. It's very hard to do that. Most do not get there.

 

[Logos1]

As it turns out, I probably could invest $5,000 or perhaps more in starting this business if that was a wise investment. Still that would leave me potentially without training and support. Those things are worth something to me - the question is whether they're worth the long term haircut.

Could anyone comment about EFES or Securus (or someone local) in the Orlando area or even another organization I'm not considering that provides what they provide? Again, thanks for your input.

 

[Rearden]

EFES -- Joe Ciaccio out of Tampa -- good manager.

Go direct to him, negotiate to 90% -- probably cap out at 95%.

 

[Logos1]

EFES -- Joe Ciaccio out of Tampa -- good manager.

Go direct to him, negotiate to 90% -- probably cap out at 95%.

Thanks a bunch, Reardon. Is he on here or could you send me his contact info? Thanks.