LifeSecure Group LTC

[CALTCAgent]

So let's delve into it a bit more. I had to deal with a brand new agency starting up in this business. Studied what various outfits do (including LTCFP) - was surprised to learn how they did it. LTCFP started out by providing an option for agents to buy mail leads at a discount (to the tune of $300/1000 mailed), 70% advances, 65/6/4 or so commissions, uniform across carriers, vesting day 1, ability to borrow to buy leads, 0% interest - against future commissions.

This is 10% less first year average LTC commission. 1 sale at $2,500 premium equals $250 less compensation. All to save $200 per thousand on direct mail ?

Do you have requirements on the mailing criteria ? (piece, age, income, etc.)

I guess you are hiring agents that can't afford leads.

Worried about the future? The partnership bylaws specified agent portion of renewals is secured (agency can't touch it, can't leverage it or borrow against it).

Not when company provides leads. Nice try though.

You have issues with your pc? There was tech support, appointments specialist on site, training, etc. It required them to run red ink. Should I continue?

All fluff. Give me the leads and comp.

So I was going to look at the startup agency I have mentioned. About 30 agents. Contracts that we got looked more like 85/12/6 than the do-nothing parasitic GA that Jack likes so much (and you, the minion, don't mind, bc they tell how you they will screw you, and then go ahead, and well - screw you).

Good comp., who are they ? I'm sure you don't get any leads at that comp.

Expected 160k weekly turned out to be more like 70k. 1 staff accountant, 1 appointments/hr/receptionist, 1 tech guy, attorney's time, office rent - total annual budget about 500k. So you have to make payroll of about 45k/month. Out of the said 70k you spend almost everything on leads - and the press cannot stop. Bc if you stop - you dig yourself deeper hole.

That is too bad. What you describe sounds like it is necessary to run it like churn and burn to make it.

You need agents to leave to get the renewals for any profit.

So you look for more agents, who require more leads. So you try to get rid of people who took the leads and did ... big ... fat ... nothing.

Come on you hire people with lead financing as a perk. You are not hiring experienced LTC agents. This is not your business model.

So you try to keep people who got into some sort of trouble and could not work (but told you a month later, after they got 3 weeks worth of leads, that could have been worked by someone else). Do you feel the pain yet?

No. Give me those leads and I will work them.

Having read the above, you are still delusional? Let me help you - if you are serious coming onboard, we (and any other agency) - will tell you what your compensation will look like, what you can expect with respect to leads and what is expected of you.

I am still delusional. It helps keep me from going insane.

There also has to be an open release policy in writing up front. It is not fair for an agent to drop contracts to come on board somewhere then find out things were not working for whatever reason and be stuck at the IMO.

Not everyone likes to have their math splashed across the forum for people like yourself to wag their tongues on. Not that it is a huge secret.

I understand. Too bad there wasn't an easier way.

 

[ltci4sure]

Do you have requirements on the mailing criteria ? (piece, age, income, etc.)

Have you been paying attention? I was describing the business model that ltcfp started with - i have no idea. I would assume they were restricting mailing to maximize ROI.

I guess you are hiring agents that can't afford leads.

people I know at ltcfp are all experienced agents, nevertheless many took advantage of the lead financing. With the agency I have described - there is nothing I have not seen - some people can afford leads but prefer not to pay upfront, some cannot. All over.

All fluff. Give me the leads and comp.

You just never listen... ADHD? Some people prefer support and agent community, believe it or not. I said so many times above - it is a matter of an individual fit.

Good comp., who are they ? I'm sure you don't get any leads at that comp.

You have likely misread what I wrote. That level of comp was what we as agency got from upstream on our main carrier.

That is too bad. What you describe sounds like it is necessary to run it like churn and burn to make it.

This is literally one of the craziest things I have heard. Running a churn operation is not something I'd ever do willingly (nor, I am sure, any other agency). Believe it or not, but hiring new people costs *more*.

You need agents to leave to get the renewals for any profit.

pure lunacy. Would rather retain and train agents instead.

Come on you hire people with lead financing as a perk. You are not hiring experienced LTC agents. This is not your business model.

You are making no sense. We try to hire experienced people or those who we can help increase production. What comes out of that - depends.

No. Give me those leads and I will work them.

Right, all of the agents I've ever dealt with say that. Results? YMMV.

It helps keep me from going insane.

I'm afraid too late for that.

There also has to be an open release policy in writing up front. It is not fair for an agent to drop contracts to come on board somewhere then find out things were not working for whatever reason and be stuck at the IMO.

.
Pure drivel. If you got no debt or other monetary obligations, we wont hold anyone. It says so outright in our contract. I am pretty sure it is the same for ltcfp - my friends tell me there has never been a case they know of when someone's been retained in such fashion. I'd have to make a disclaimer - since I was looking at it (long ago, we're talking 2004-2005), ltcfp merged with acsia.

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$55,700 in February.....

25 policies. I assume you've received about 250 leads, conversion 10:1. Not bad but not great either.

 

[ltcadviser]

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25 policies. I assume you've received about 250 leads, conversion 10:1. Not bad but not great either.

Whatchoo talkin about Florence?

 

[scagnt83]

If I had a 10:1 closing ratio as an experienced agent I would go find a job that I am actually good at and stop pretending to be an insurance agent.

Of course if you are working crappy ppc leads then 10:1 MIGHT be acceptable for an experienced agent. Although personally, for those types of leads Ive always had around a 5:1 conversion ratio. For leads directly from my own website I average around a 3:1 closing ratio depending on the product type.

Now for a GREEN agent, 10:1 should be expected. 10 years ago when I first got into the business that is about what I averaged from cold calling. But an experienced agent should be better than that unless the leads are absolute sh%t.

 

[ltci4sure]

Whatchoo talkin about Florence?

I am talking about your claim that you have been getting 6-16 leads per day. I took a nice round number for the month - 250, 55k submitted (as reported by you) - approx. 25 policies. Conversion of 10 leads per app. it is not that difficult, is it?

 

[ltcadviser]

I am talking about your claim that you have been getting 6-16 leads per day. I took a nice round number for the month - 250, 55k submitted (as reported by you) - approx. 25 policies. Conversion of 10 leads per app. it is not that difficult, is it?

That was my bank deposit, not my premium submitted, honey bunches.

Dont keep track of premium submitted. Not running an agency Polly.

Guess common sense is difficult for you.

Keep trolling.

It's great how you hijack a thread simply due to a comment that Mass Mutual has great unisex rates.

 

[scagnt83]

If the troll ever does reveal themselves it will not be good for their agency since they seem to think that a 10:1 close ratio is good. That is what you should average from cold calling, not from paid leads.

 

[ltcadviser]

If the troll ever does reveal themselves it will not be good for their agency since they seem to think that a 10:1 close ratio is good. That is what you should average from cold calling, not from paid leads.

Not sure about that, Tyler. 10-1 might be ok. Depends upon what your client base is, and what a typical application for you looks like. Also depends if you are meeting with clients face-to-face in your community or if you are having 10 minute phone conversations. You could speak to 10 people in a day for 5-10 minutes each, write 1 policy and be comfortable.

The only things that really matter is are you providing your clients excellent service and advice and are you personally comfortable with how you are being compensated for your time.

 

[ltci4sure]

That was my bank deposit, not my premium submitted, honey bunches.

I love it! So, you have been an agent for what? 20 years? Assuming you are a decent producer, this amounts to about what? 4 mil book? this means at least 20-30k/month in renewals. Which means, only 12 policies submitted, with 20:1 conversion. But who's counting?

Not running an agency Polly.

How lucky... for the agency

Guess common sense is difficult for you.

You remind me of trump and his private parts-measuring verbal slugfest on Fox.

It's great how you hijack a thread simply due to a comment that Mass Mutual has great unisex rates.

Not so fast, it started out with you disparaging an OP by stating that workplace LTCI that he had been presented, simplified and gender-neutral rates are in effect worthless (clearly you have no idea). ADHD much?

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If the troll ever does reveal themselves it will not be good for their agency since they seem to think that a 10:1 close ratio is good. That is what you should average from cold calling, not from paid leads.

I did not say it was good, don't pervert my words. Jack got disneyland leads (for free). At 10:1 they're what I'd say barely ok. But see, his conversion appears to be closer to 20:1 (see above). At this rate, if agency would be giving out these leads - agents get frustrated, turn around and leave, vesting or no vesting.

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Not sure about that, Tyler. 10-1 might be ok. Depends upon what your client base is, and what a typical application for you looks like. Also depends if you are meeting with clients face-to-face in your community or if you are having 10 minute phone conversations. You could speak to 10 people in a day for 5-10 minutes each, write 1 policy and be comfortable.

The only things that really matter is are you providing your clients excellent service and advice and are you personally comfortable with how you are being compensated for your time.

Lovely! If you think 10:1 is ok (or even worse is ok, see above) - on, say, the leads you get from the agency, you are costing them some serious $. Eventually they'll stop giving you leads. Do you want me to show the math behind it? If agency is getting 85% FYC, 6% renewals, paying out say what - 50% FYC, you get margin of 25%. Your 10 leads cost about 30% of the premium submitted, seems ok right? Nope, you are forgetting that only 55-60% of these place, if you are generous with underwriting - less. so coming in FYC, you are 30% in the hole, it takes 5 more years for your to recoup. How do you like them numbers, Jack? Hope that AALTCI award did not get to your head.
Small disclaimer: I assumed paid leads at about $70/lead - not cheap. If you are using cheaper leads at around 40-45/lead math looks better but not by a whole lot.

 

[ltcadviser]

I love it!
.

Glad you love it, Arlene.
I am content. I have everything I need in life.