Weekend Lead Generation / Sales Testing . . .

[Rirwin]

You are right. The agents that don't make it are the ones that will kill profits. I take a $800 loss on average for every agent that doesn't make it in my call center. That's why call centers pay very very low comp. That's the only way to make a profit with all the expenses!

Most on here will say you are ripping off your agents with absolute no knowledge of how it works.

 

[myinsurebiz]

1. As soon as an agent owes the carrier $500 or more they will bail.

This isn't my first rodeo with a call center selling FE . . .

1. They will be in a (I have to pay the CB back before I can pay my own rent, gas, food, etc) and you will get the roll up.

We have a unique way of handling Charge Backs for producing Agents. I'm no stranger to debt rollup.

2. Once an agent does really well and figures out he can bail and roll the business to a better carrier for more money you will lose him and charge backs will roll up.

They won't be able to "roll" any present client for 36 months due to our non-circumvent agreement. Plus - you assume there would be a "better carrier" . . .

Charge Backs will happen no matter what. That's why we limit the advances to 3 or 6 months.

3. You need to keep the ALL the commissions and pay them a wage and bonus, so if they bail you at least keep what stays on the books. (you will need it)

They are welcome to keep what they've earned. They can't sell direct with these Carriers anyway. In addition - Alabama, Georgia and S. Carolina don't like it when an Agent jumps out of line . . .

4. If they are using your script, your leads, your office etc, they are employees and as soon as they work a week with no pay because of charge backs you are open for a law suit, they are 100% employees.

They are 1099 Contractors and have an Agent relationship with the Carrier. We pay them bonuses, etc through a W2 based solely on performance. They are a commissioned only - not hourly / salary. We do pay taxes on earned income that they receive direct from us . . .

5. This is my basic breakdown of your profit, and based on real call center numbers, I am also being very conservative. For my example I am using these figures - Average premium $50

We project $60 avg . . .

Average close rate 20% (haha lets hope so) . . .

1 in 4 is the target for D2D leads.

Charge back rate 70.

LOL - not even close. Based on our past results. We project to see a Not Taken rate of 20% and 20% to 25% 1st Year charge backs. This should be less based on 3 and 6 month advances. We only get debited for any "unearned" advance. 65% 2nd year persisitency is expected . . .

Thanks for your insight. We've done this before so we are pretty comfortable with our projections. Our mistakes will help us avoid the land mines this time around.

 

[FinalExpenseDojo.com]

@myinsurebiz If you're making outbound calls you will need 100+ leads per agent per week to keep them active all day every day due to people not answering the phone. How many D2D lead generators do you need to generate 100 leads a week?

 

[myinsurebiz]

With a 80% spread and generating our own leads, we'll be okay. We're going to have lazy agents and most def charge backs. But - we minimize our overall exposure with the reduced Advance levels.

The Carrier will Vector the Agent's portion of the debt even though it rolls up and is eventually paid by us . . .

 

[chasejordan1]

This isn't my first rodeo with a call center selling FE . . .



We have a unique way of handling Charge Backs for producing Agents. I'm no stranger to debt rollup.



They won't be able to "roll" any present client for 36 months due to our non-circumvent agreement. Plus - you assume there would be a "better carrier" . . .

Charge Backs will happen no matter what. That's why we limit the advances to 3 or 6 months.



They are welcome to keep what they've earned. They can't sell direct with these Carriers anyway. In addition - Alabama, Georgia and S. Carolina don't like it when an Agent jumps out of line . . .



They are 1099 Contractors and have an Agent relationship with the Carrier. We pay them bonuses, etc through a W2 based solely on performance. They are a commissioned only - not hourly / salary. We do pay taxes on earned income that they receive direct from us . . .



We project $60 avg . . .



1 in 4 is the target for D2D leads.



LOL - not even close. Based on our past results. We project to see a Not Taken rate of 20% and 20% to 25% 1st Year charge backs. This should be less based on 3 and 6 month advances. We only get debited for any "unearned" advance. 65% 2nd year persisitency is expected . . .

Thanks for your insight. We've done this before so we are pretty comfortable with our projections. Our mistakes will help us avoid the land mines this time around.

That is why I said you don't really want advice. Your 20% not taken and 20% to 25% is a 40% off the top I projected 30% which is the 70% I said. Seem you really do have it all figured out. I am curious Mr. Cowboy since it is not your first rodeo, why did the last rodeo fail? If it is not your first then the first rodeo should still be running like a dream. You said project $60 bassed on what exactly (the first Rodeo?) Like an agent cares about a piece of paper, oh and YOU have a unique way to deal with Cb haha. Again you are setting yourself and the agent up for massive failure and your 2 blind to take advise and ask why questions about thoughts and concerns we have about YOUR post. Why post if you have it all figured out, just do it and come back in 2 years and tell how awesome you are. It is clear by your numbers you have zero idea. Hence the word "projected" you are using if you actually had a clue your numbers wouldn't be projected they would be based on facts. Don't start a business based on "projections" unless you have $100k your willing to lose. Business 101 take your projections cut them in half and decide if you can survive. #bangmyhead

 

[chasejordan1]

With a 80% spread and generating our own leads, we'll be okay. We're going to have lazy agents and most def charge backs. But - we minimize our overall exposure with the reduced Advance levels.

The Carrier will Vector the Agent's portion of the debt even though it rolls up and is eventually paid by us . . .

You clearly can't do math, I did the math for you. At a very liberal $17 per sale I hope you sell 250 a week just to make any real money.

 

[chasejordan1]

@myinsurebiz If you're making outbound calls you will need 100+ leads per agent per week to keep them active all day every day due to people not answering the phone. How many D2D lead generators do you need to generate 100 leads a week?

No point in talking to this dude he won't listen.

 

[rousemark]

This isn't my first rodeo with a call center selling FE . . .

If you had a call center before, why did you shut it down?

We have a unique way of handling Charge Backs for producing Agents. I'm no stranger to debt rollup.

And, my guess you are still going to be very good friends with it!

They won't be able to "roll" any present client for 36 months due to our non-circumvent agreement. Plus - you assume there would be a "better carrier" . . .

There is no way you will prevent agents from rolling business for 36 months no matter what you put in the contract. ,,, There is always a "better carrier".


They are 1099 Contractors and have an Agent relationship with the Carrier. We pay them bonuses, etc through a W2 based solely on performance. They are a commissioned only - not hourly / salary. We do pay taxes on earned income that they receive direct from us . . .

Then why make them W2 and have the added expense of FICA, Unemployment Insurance, Worker's Comp. etc.? 1099 the bonuses also.

 

[chasejordan1]

This isn't my first rodeo with a call center selling FE . . .

If you had a call center before, why did you shut it down?

We have a unique way of handling Charge Backs for producing Agents. I'm no stranger to debt rollup.

And, my guess you are still going to be very good friends with it!

They won't be able to "roll" any present client for 36 months due to our non-circumvent agreement. Plus - you assume there would be a "better carrier" . . .

There is no way you will prevent agents from rolling business for 36 months no matter what you put in the contract. ,,, There is always a "better carrier".


They are 1099 Contractors and have an Agent relationship with the Carrier. We pay them bonuses, etc through a W2 based solely on performance. They are a commissioned only - not hourly / salary. We do pay taxes on earned income that they receive direct from us . . .

Then why make them W2 and have the added expense of FICA, Unemployment Insurance, Worker's Comp. etc.? 1099 the bonuses also.

He doesn't know what he is doing. Doesn't matter if they are contracted direct to carrier if they are in his office they are his employees. People just don't know what they don't know.

 

[myinsurebiz]

@myinsurebiz If you're making outbound calls you will need 100+ leads per agent per week to keep them active all day every day due to people not answering the phone. How many D2D lead generators do you need to generate 100 leads a week?

They get 5 fresh D2D Leads twice a week + cheap aged leads their 1st two weeks after Training. Each issued policy = 1 fresh D2D Lead + with each $20 in monthly premium - they get 1 fresh D2D Lead . . .

Keep in mind - these aren't Independent Agents. They will be happy making $150+ a day. Once they realize they can make more money being Independent - most will move on to a street level contract . . .