Dave Ramsey Zander Insurance

[David C]

I emailed Zander Insurance and asked if Dave was in any way compensated by Zander for insurance sales.

I received a reply from Jackie in the Zander office. She said that the only compensation Dave receives is payment for ads on his program.

If you check out their website Dave has a letter under The Dave Ramsey Show that talks about his endorsement of Zander.

 

[VolAgent]

Did you ask what amount he receives for his ads? Also, get that in comparison to what he receives from other ads, or what comparable ads might cost on a similar site.

 

[Newby]

Is there even a question about this?

Does anybody really believe that Dave Ramsey recommends ANYTHING without a big payday for himself.

Like he REALLY believes that B-Alive Royal Jelly will cure everything that bothers you?

 

[rphillips]

I was a health ELP for a year. For $500 bucks a month I got whatever leads came in-- no guarantees. I was stuck in a captive as-earned contract with MOO and the monthly fee began to stretch me. I had two kids in college and two toddlers at home.

I dropped the ELP status. The leads were great leads, so I really didn't want to vacate but financially it made sense. Cross-selling was an option but I was up against his biggest advertiser: Zander Insurance and often people had already been there before they sought at my service through the ELP program.

This was also right when HSAs rolled out, but the Ramsey Group was insensitive to the fact that THEY were touting the half-price insurance which made it even harder still to re-coup my costs.

The position stayed vacant for about 9 months. I kept checking in to see if they were willing to reconsider and negotiate the fee. No-- they just sent the leads to eSurance IIRC.

When they eventually found a new person to take the slot, they were charging him $900 per month-- based on listenership. I wonder what it is now?

Ramsey is a profit-meister (not that there is anything wrong with that), but he would rather let the seat go vacant than negotiate reasonably. Lost some of my fandom over that...

 

[somarco]

Dave didn't need your $500, and if the current person leaves, he won't lose his house over losing that person's $900.

Love him or hate him, he is a master marketer. As I recall, he managed to borrow several million from local (Nashville) banks by the time he was 25. Most of this was due to chutzpah.

I have heard or read he was driving a Jaguar, living the good life, all on OPM. When the real estate market collapsed he lost everything except his drive.

I also seem to recall he was once a smoker and overweight.

This guy is a comeback kid. While I don't agree with his approach to things which is pretty much "my way or the highway" I have to admire his drive to succeed. In spite of his ego and methodology, it SEEMS that he does not step on others to get to the top . . . something that happens all too often with many wealthy people.

He is opportunistic and, I believe, genuinely cares for others. He has built an empire based on creating a not so unique brand. I believe (John Cummuta did it before Dave.

Both guys had early success followed by financial downfall then turned to religion as a way out.

John made money by starting an MLM program (FINL) that taught folks how to get out of debt. After that collapsed he became a direct marketer.

Dave was a direct marketer, selling his program out of the trunk of his car. He had a dream and refused to give in, much like Bill Porter.

If you don't know the Bill Porter story I suggest you rent Door to Door.

If you can watch D2D without emotion check to see if you have a pulse.

The same can be said for The Pursuit of Happyness.

Both are stories of people who overcame adversity and succeeded.

But back to Dave . . .

He not only overcame setback but did so in grand style. His business model is built on developing multiple streams of income. That is something all of us, especially those who make a living selling major med, can learn from.

Rather than criticizing his business model, emulate it.

 

[rphillips]

Dave didn't need your $500, and if the current person leaves, he won't lose his house over losing that person's $900.

Then why not let me have it for $200-- or nothing for that matter?

I think his listeners would have been better off with an agent than without one via e-surance. I had great success and rapport with the people I met through his program.

The seat sat vacant for about 9 months-- not because there were not inquiries-- just no takers. I should add that it was vacant for a long time before I took it.

My biggest gripe about them was a lack of reasonableness. I showed them the numbers: traditional plans vs. HSA plans and how my commissions would be cut in half by selling the product that Dave touted. They didn't care.

Homes with no offers go down in value not up. Mix in there the alleged increase in listenership and who knows where you come out. I do know that having no one to service those people was not good for Ramsey, his listeners or me!!

 

[Newby]

Then why not let me have it for $200-- or nothing for that matter?

I think his listeners would have been better off with an agent than without one via e-surance. I had great success and rapport with the people I met through his program.

The seat sat vacant for about 9 months-- not because there were not inquiries-- just no takers. I should add that it was vacant for a long time before I took it.

My biggest gripe about them was a lack of reasonableness. I showed them the numbers: traditional plans vs. HSA plans and how my commissions would be cut in half by selling the product that Dave touted. They didn't care.

Homes with no offers go down in value not up. Mix in there the alleged increase in listenership and who knows where you come out. I do know that having no one to service those people was not good for Ramsey, his listeners or me!!

It sounds to me like you were being unreasonable, not Dave Ramsey. If they were delivering even two or three good leads per month, Dave has them ready to buy health insurance, Long-Term Care Insurance, disability insurance, term life insurance etc.

It should have been easy to make your money back if the leads were quality.

I don't like most of what Dave Ramsey does but from a business standpoint, that doesn't sound bad.

 

[LGilmore]

Sorry to say this, but you aren't important in his plan. You don't matter. It has nothing to do with what you believe is right or fair or how things should be.

Unfortunately, that's not how this industry operates. There are many things disagreeable about our industry, the problem is you'd be out of business if you sat around fretting about them. Go through, around or over but move on.

 

[bhoward]

Heck, buy air time during his radio show on the local radio...

 

[rphillips]

It sounds to me like you were being unreasonable, not Dave Ramsey. If they were delivering even two or three good leads per month, Dave has them ready to buy health insurance, Long-Term Care Insurance, disability insurance, term life insurance etc.

It should have been easy to make your money back if the leads were quality.

I don't like most of what Dave Ramsey does but from a business standpoint, that doesn't sound bad.

Do you pay $133 to $500 per month for 1-3 leads? C'mon.

I was the only person to "assist" his listeners for the middle 8 out of 26 or so continuous months, so I don't think a plan that would have kept serving his listeners is unreasonable. They were more about having their price met than serving the audience. When I was asked to pay $500 there were other agents in even larger markets still paying only $200/month under some grandfathered arrangement for the time being.

If I had been in a different contract situation where I could have gotten annualization, I'd still be the ELP in all likelihood. As I recall a typical family premium about that time was $300 per month for an HSA plan. At 14% as-earned, I'd have to sell 12 per month just to cover my fee. Even with 20-30 good leads per month, it's tough to sell 12 that get through underwriting and placed... and that's just to keep even. If I had been in an annualized contract, only two sales would have kept me in profit.

He has Zander Insurance and an LTC ELP as well so cross-selling opportunities were limited. As an L&H ELP we were obliged to sign a pledge that we would sell nothing but term life insurance to Ramsey listeners.

DI was the only wide-open cross-sale-- although I think that was available through Zander as well IIRC.

It was fun while it lasted...
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Sorry to say this, but you aren't important in his plan. You don't matter. It has nothing to do with what you believe is right or fair or how things should be.

Unfortunately, that's not how this industry operates. There are many things disagreeable about our industry, the problem is you'd be out of business if you sat around fretting about them. Go through, around or over but move on.

True but the industry we are talking about is talk radio.