What is this all about?

[Guest]

I got this from a guy I know who runs an FMO using the same methods as UA... booked appointments for agents with 1/2 the commission going to the FMO. They are an honest shop and sell mostly Pyramid MA. He sent me the following but would not give me any details... says he is just brokering it. They are having a meeting on Monday but I can't make it. Anyone heard of this paradigm for IFP before? Sounds like eHealthInsurance but I don't know.

Al

1. Everything including all sales is done from your home through the
internet. All you need is a DSL or better internet connection (no dial ups),
2. A national phone account (You will be working multi-states) and a good
computer. No more missed appointments or spending huge amounts in gas.
3. All commissions is advanced (Typically on submission except for major
medical)
4. Submit by Sunday, get paid by Thursday (issued on major meds)
5. Selling mostly underage health, some Medicare.
6. Up to 10 leads per day at no charge. (20% closing is mandatory to
continue program)
7. WE honestly believe (even with 20% loss in lapses) your income (closing
20%) be around $250K per year. (Based on 50 leads per week, 10 apps)

 

[Guest]

laughable...

10 apps a week at 20% lapse rate = $250,000 per week after the FMO gets their cut. Let's do their math...working with the Pyramid MA product although it is not clear what product you would sell.

10 apps x 80% retention = 8 apps per week = 32 apps per week = 384 apps per year (if you do not take a single day off).
$250,000 / 384 apps = $650 commish per app.
Pyramid's top contracts are $350 per MA app.
Add to that free leads at 10 per day and selling to seniors on the phone! Where are they getting all this money to pay you?

 

[Frank Stastny]

Kyle, maybe they are using some new kind of math invented just for FMO's. Or they could be talking about pesos and not dollars. That would make more sense.

I believe the biggest attraction in what they are claiming isn't the commission as much as how the agent can make all that money. Everyone today wants to be an "underwear agent" today.

That seems to be the latest, greatest, newest way to market insurance. I guess I wear the wrong kind of underwear cause it doesn't work that easily for me.

 

[Crabcake Johnny]

You can write substantially more business meeting with clients then doing it over the phone.

 

[senior-advisor-indiana]

I tried to sell a Medicare advantage plan yesterday in my underwear. Needless to say they slammed the door in my face and said they were calling the police.

 

[Frank Stastny]

John, that goes without saying.

On another board I am sorta-kinda a member of I was called an "Old School" agent and it wasn't a compliment. They just couldn't understand why I was wasting all that time and gas when I could sit at home, sell it and fill out the apps on line.

I couldn't help but wonder how much insurance they sold a year.

 

[Crabcake Johnny]

Selling over the phone is a myth. I pull it off but only with an insane amount of leads. And I'm leaving about $2,000 a week at least on the table.

Mike Golden has been running circles around me for the past two weeks and he's meeting with every client.

Truth be told with very few exceptions I don't know anyone selling over the phone who's not wondering where they're next check is coming from.

The truth is most agents who are really banging it out hard over the phone - $20,000+ per week in AV, are selling plans with the words "saver" and "right" in 'em.

 

[J.R.]

John, that goes without saying.

On another board I am sorta-kinda a member of I was called an "Old School" agent and it wasn't a compliment. They just couldn't understand why I was wasting all that time and gas when I could sit at home, sell it and fill out the apps on line.

I couldn't help but wonder how much insurance they sold a year.

Would you be kind enough to explain to the rest of us your thoughts about not becoming a phone agent?? I imagine the senior market is very different and probably requires a more hands on approach given the demographic. However, if somebody wanted to see you that bad, a desktop camera might be sufficient.

Granted, phone sales isn't the traditional way of selling and I am not saying one method is better than the other. I will say that since I have gone independent, my stress level has gone down a great deal now that I have the option of not having to visit a client.

 

[Mike_Golden1]

You can write substantially more business meeting with clients then doing it over the phone.

John,

What basis do you have for making this claim?


I just read the rest of the thread, I'm busted

Actually, I think the ideal situation is a combination of phone + in person. I'm not comfortable with meeting and enrolling people on the phone (yet) and meet with clients because I don't want to blow a deal.

Sometimes it leads to extra business-on Wednesday I met with a client to simply switch his enrollment from an old Assurant Value Plan to a CoreMed plan in order to pick up a longer premium guarantee-in the process we started talking about life insurance and I was able to show him how to switch from his current policy, which was a $300K term with 6 years left to run, to a $400K policy with a new 10 year term for the same premium. That wouldn't have happened over the phone.

 

[Winter_123]

I tried to sell a Medicare advantage plan yesterday in my underwear. Needless to say they slammed the door in my face and said they were calling the police.

====================

Think of it this way. Would you want Suze Orman giving you financial advice in her underwear?

I rest my case Your Honor.

Winter