What is Equity Share?

[kingkhon559]

My last company FFS always mention to us that if we sell x amount, we quality for equity share if the company decides to go public. They say, we can be millionaires like Primerca agents back in the 80s. They say that either ANICO or NATIONAL LIFE GROUP will buy out the agents. Is this true? If you build a big enough agency, let's assume you have 1 million agents, sell 600million policies and the company buys you out for 1 billion, 10% of that goes to the agents.... is this far fetch? That's what FFS was telling all their agents. I feel this was a way to manipulate you to stay. What are your thoughts? True?

 

[DigitalBGA.com]

I feel this was a way to manipulate you to stay.

This.


1m agents? Do you know how many agents there are in the US?

600m policies? You are going to get your 1m MLM agents to do 600 policies each? nope. Most do 0-2.

It's a pipe dream. 10% going to agents? doubtful

Instead of agency building or trying to build an empire, focus on selling something first. Need to sharpen those skills before you can teach others to do it. Don't be a teacher that can't do...go do, then teach while doing.

 

[jdeasy]

My last company FFS always mention to us that if we sell x amount, we quality for equity share if the company decides to go public. They say, we can be millionaires like Primerca agents back in the 80s. They say that either ANICO or NATIONAL LIFE GROUP will buy out the agents. Is this true? If you build a big enough agency, let's assume you have 1 million agents, sell 600million policies and the company buys you out for 1 billion, 10% of that goes to the agents.... is this far fetch? That's what FFS was telling all their agents. I feel this was a way to manipulate you to stay. What are your thoughts? True?

Short answer to "what is equity share?" A lie!!

 

[Norwayguy]

My last company FFS always mention to us that if we sell x amount, we quality for equity share if the company decides to go public. They say, we can be millionaires like Primerca agents back in the 80s. They say that either ANICO or NATIONAL LIFE GROUP will buy out the agents. Is this true? If you build a big enough agency, let's assume you have 1 million agents, sell 600million policies and the company buys you out for 1 billion, 10% of that goes to the agents.... is this far fetch? That's what FFS was telling all their agents. I feel this was a way to manipulate you to stay. What are your thoughts? True?

Lots of "if's in there. .

 

[FinalExpenseDojo.com]

Just a way for them to create value while offering agents crazy low comp! Dangling of the carrot.

My opinion is agents are better off getting high compensation levels up front.

 

[eersfan]

And if frogs had wings, they wouldn't bump their butt each time they move. As Norwayguy said...lots of "if's" in their.

 

[DHK]

My last company FFS always mention to us that if we sell x amount, we quality for equity share if the company decides to go public. They say, we can be millionaires like Primerca agents back in the 80s. They say that either ANICO or NATIONAL LIFE GROUP will buy out the agents. Is this true? If you build a big enough agency, let's assume you have 1 million agents, sell 600million policies and the company buys you out for 1 billion, 10% of that goes to the agents.... is this far fetch? That's what FFS was telling all their agents. I feel this was a way to manipulate you to stay. What are your thoughts? True?

1) There are only about 320 million people in the United States... and a portion of those are uninsurable, minors (who cannot sign a contract), and those who simply won't be able to afford it due to financial circumstances and age.

2) 600,000,000 policies sold... let's assume a $1,000 commission @ 100% each (term): $600,000,000,000 (that's BILLION) would've been paid out.

Why would you accept only $1 billion? And only 10% goes to the agents? You generate $600 BILLION in revenue... and you'd be happy with a $100 million payout? I guess that's how much the customer list would be worth?

$100 Million / $600 Billion = 2/10,000th. That would be too small of a payout to even waste your time on.

The business buy/out is only worth a certain amount based on ongoing revenue - which term life has very little renewal income - if any. That business would only have value if you knew how to convert term to permanent policies over time.

Most people who STAY committed to the MLM game simply don't work out the numbers for themselves, nor ask why their uplines deserve to earn larger overrides when the biggest job in this business is prospecting and marketing - done on the individual agent level. If you cannot (or don't) prospect, then no one earns anything. If you CAN prospect, then why does your upline deserve all the overrides and you (who are doing the important work) only get 25% to start?

 

[walthamny]

Build your book of business from day 1. Do what is best for your clients all the time. Go independent and cross sell them other products by either doing it yourself or hiring/partnering others. When you retire you will have a great equity share. And it won't depend on whatever company buys which one in the next 50 years.