Went to the SL meeting

[theinsuranceman]

Greg, couple of questions:
1) What do you mean by chargebacks coming at the back end?
2) What are the chargeback rules on first year lapses? What I'm getting at is at one extreme, companies charge back 100% of commissions if the policy lapses at any time in the first year. At the other extreme, companies charge back only the unearned portion of any advances. Where does SL fall between the two?

edit: Never mind on the second question. I found a commission schedule you sent me a little over a year ago, where it says 100% chargeback period is for 6 months.

But I'm still wondering what it means to have chargebacks at the back end. I know some companies hold back a small portion of the advance commissions (maybe 10%) and keep them in the agent's account to offset chargebacks. Is that what you mean?

You have an outdated commission schedule. They have improved it quite a bit. Even have renewals on the GI.

Charge backs on the back end:
If you had a 60% advance that would be a 7.5 month advance, The other 40% is paid on months 8, 9, 10, 11, and 12. That's the back end. Sr Life reimburses itself for charge backs out of the back end, and the agent gets the difference as an extra check each month. Therefore charge backs don't come out of advances. Helps agents focus on production and not have a surprise charge back coming at a bad time.

 

[shonceman]

You have an outdated commission schedule. They have improved it quite a bit.

Charge backs on the back end:
If you had a 60% advance that would be a 7.5 month advance, The other 40% is paid on months 8, 9, 10, 11, and 12. That's the back end. Sr Life reimburses itself for charge backs out of the back end, and the agent gets the difference as an extra check each month. Therefore charge backs don't come out of advances.

So, back to the full chargeback question. Is it still 100% chargeback if policy lapses within first 6 months?

 

[goillini52]

So, back to the full chargeback question. Is it still 100% chargeback if policy lapses within first 6 months?

No answer means ...YES.

 

[goillini52]

Self explanatory.

DON'T BEND OVER!!!

 

[theinsuranceman]

So, back to the full chargeback question. Is it still 100% chargeback if policy lapses within first 6 months?

No. It's 4 months. About the only people who lose a lot of business the 1st 4 months are the brokers who roll business from carrier to carrier just so they can get advanced again and again on the same Ms. Jones with a different carrier.

This has never been a problem for me, even though I'm sure I've had a lapse in the 1st 4 months. I almost believe this is a protection mechanism against brokers rolling business.

Now, watch the brokers come storming in here to tell me I'm wrong...lol.

 

[theinsuranceman]

No answer means ...YES.

I don't respond so quickly as I don't hang around up here all day.....like some people.

 

[shonceman]

I don't respond so quickly as I don't hang around up here all day.....like some people.

Thanks for answering my questions. In the middle of the back and forth trash talk and shameless plugs I appreciate you for being a straight shooter.

 

[Todd King]

Logically think about your argument, you have very FEW producers with actual levels that I offer to Indy agents. Let's say a majority of your agents are south of 100%, which they are (how do I know, by consistently recruiting agents away from your pool, if you have promo guidelines please post that'd be helpful in the same sense us educating you is helpful - reciprocity)

Let's say you are cheaper my $3 per lead and my average agent is 115% and yours is 90%, which is probably 90% accurate for this scenario, your agents are GIVING UP 25% comp to save $3 per lead?
10k month with you at a 90% is $6,750 in deposits on 20 leads a week by (20*25)*4= 2k lead bill, netting them $4,750. With me there leads have now become free by having a higher contract level. Would you like the math since I've read the rest of the thread and you clearly can't do simply numbers? Surely! 115% contract with 10k a month in production and a 75% advance, same scenario all else remains constant results in $8,625-$2,240=$6,385 net. I think I can rest my case in that in it of itself. But you posted more, so I shall reply further.

Charging agents back and delaying it doesn't benefit anyone, take it out of their advance will prevent debt roll ups for uplines and that has been tested.. logically delaying it is only for people who have poor money management issues and will be out of the business shortly, so you'd want their chargebacks eaten up by advances, how long are you delaying? Many simple ways to fix that problem of poor money man agent, one is working with me and now getting your leads for "free". Most chargebacks don't hit till 30-45 days out anyways...

Yes, we do lead financing as well.. you definitely don't have an edge from any standpoint. Anything you offer, I offer with dramatically more comp. Plus agents don't lose their book when they leave! How long is that contract they sign? (I genuinely don't know, can you post the SL generic contract for us to read, I'll check my Dropbox to see what they have). When does vesting begin as well?

Ahh, to cherry picking leads. I would absolutely say that is subjective the manager above them. I've heard some complaints about leads being run before an agent gets to them and other times I haven't, so perhaps it comes down to their upline and how they operate their business. Glad to hear that you do NOT do that!

I was going to copy and paste your bottom portion of your reply as well, but it wouldn't let me. So here we go, all agents/managers that want to have a confidential business conversation, please reach out to me directly. We do lead financing to ensure that you do not have to come out of pocket for your agents leads till mail comes back in. We do NOT make you sign any contract and you are vested day one while owning your book of business and getting paid directly from the carriers.

704-724-3648

Side note - I'll offer all your agents a 120% across the board and allow them to pay $25 a lead just to recruit away from you so thank you for the insider knowledge.

The one, and maybe most important thing....You're not captive and you have several companies for your agents to use. This is the biggest part that Greg just doesn't understand. If he did, then he might begin to understand the rest of the things we try to explain to him. Nonetheless, he chooses to work with this one company and screw over many clients because of it. His choice, but not much of a choice when you do it out of ignorance though. Another sad thing is that he also spews his ignorance to other agents that he tries to recruit.

 

[rousemark]

The one, and maybe most important thing....You're not captive and you have several companies for your agents to use. This is the biggest part that Greg just doesn't understand. If he did, then he might begin to understand the rest of the things we try to explain to him. Nonetheless, he chooses to work with this one company and screw over many clients because of it. His choice, but not much of a choice when you do it out of ignorance though. Another sad thing is that he also spews his ignorance to other agents that he tries to recruit.

If he provides the benefits that clients need at a price point they can pay, even though it might not be the lowest price how can you say he is "screwing" the client.. If that be the case, every agent that has ever worked with a captive company is guilty. Also every Indy agent that is not contracted with every single FE company in order to always provide the lowest price is guilty..

 

[PA Bill]

Maybe if more agents sent all their risks to one company, there wouldn't be so many companies exiting the arena. At this rate, the captive outfits might be the only ones left.