New to industry! Question on release and contracts?

[nixonmaker2020]

Hi everyone, I'm relatively new to the life insurance agent industry and have been looking for agencies.

From what I gather, some places make you sign contracts and others don't. What is standard for ALL agencies is that you are contracted through them to multiple carriers. I've been told that 6 months since last business is what you have to wait to be released from an agency without "asking", but please let me know if this isn't right. I'm being wary of who to sign up with based on this information!!

Anyway, I've talked to a few agencies and one in particular has a contract to sign. I read on it something along the lines of "carriers and contracts will not be released or moved for up to 1.5 years of last business".

Should I be wary of these types of contracts? from what im understanding, if i want to be released in the future, they can hold me for 1.5 years even after 6 months of no business with a carrier. what I don't understand is how a company can do this? I understand the 6 months with carriers, but an agency doing this?

I'm also looking for agencies that can provide direct mail leads, digital leads, any leads (for virtual), new or aged with decent commission. Training probably isn't a requirement. If you guys know of anyone who I can talk to and check out, please let me know!

Thank you for all the help and I hope to get to know y'all! Tips are welcome and if I am breaking any rules, please let me know so I can edit!

 

[Newby]

Hi everyone, I'm relatively new to the life insurance agent industry and have been looking for agencies.

From what I gather, some places make you sign contracts and others don't. What is standard for ALL agencies is that you are contracted through them to multiple carriers. I've been told that 6 months since last business is what you have to wait to be released from an agency without "asking", but please let me know if this isn't right. I'm being wary of who to sign up with based on this information!!

Anyway, I've talked to a few agencies and one in particular has a contract to sign. I read on it something along the lines of "carriers and contracts will not be released or moved for up to 1.5 years of last business".

Should I be wary of these types of contracts? from what im understanding, if i want to be released in the future, they can hold me for 1.5 years even after 6 months of no business with a carrier. what I don't understand is how a company can do this? I understand the 6 months with carriers, but an agency doing this?

I'm also looking for agencies that can provide direct mail leads, digital leads, any leads (for virtual), new or aged with decent commission. Training probably isn't a requirement. If you guys know of anyone who I can talk to and check out, please let me know!

Thank you for all the help and I hope to get to know y'all! Tips are welcome and if I am breaking any rules, please let me know so I can edit!

Hardly any agency is going to have a contract. But if you have found one that does run away from that thing. That contract is not going to be there to protect you it's to rip you off. More than likely that place is going to want you to sign your commissions which is the worst thing you can do. They're going to try to bind due to low commission levels too.

don't ever believe anyone who says words like "highest commissions in the industry" or "Street level commissions" or any garbage like that that is not actual numbers printed out on a page that you can compare to other agencies actual numbers printed out on the page. Agencies that pitch vague garbage about commission levels are always going to try to put you at lower commission levels.

and if someone says they are putting you at a 120% level that means that you will multiply the first year's annual premium by 120% to get your first year commission calculated. But there's one famous pyramid recruiting agency that is huge and if you were signed up they will explain to you that 120% it's just the name for their commission grid that is really just 95% they will play it off like it's all just one big misunderstanding. And they will even say that everyone does that. But no everyone does not do that. They set up late at night trying to think of new ways to scam agents who are new to the insurance industry.

Read the information on my website and listen to the audios of real agents talking about how they run their business and definitely print out the real commission grids. Call me if you want to talk to us. Just reading and listening to the info on our site will make you way more scam proofed. And NEVER respond to a "PM me for more info" pitch on Facebook or any where. That is always the way that scammers try to pull you into their trap. Legit agencies always have a legit website with a whole lot of information you can read before you ever talk to them and then you have to call or contact them they will not try to trap you into a private conversation before you know information about them.
Getting Started with FE Sales

 

[nixonmaker2020]

Hardly any agency is going to have a contract. But if you have found one that does run away from that thing. That contract is not going to be there to protect you it's to rip you off. More than likely that place is going to want you to sign your commissions which is the worst thing you can do. They're going to try to bind due to low commission levels too.

Read the information on my website and listen to the audios of real agents talking about how they run their business and definitely print out the real commission grids. Call me if you want to talk to us. Just reading and listening to the info on our site will make you way more scam proofed. And NEVER respond to a "PM me for more info" pitch on Facebook or any where. That is always the way that scammers try to pull you into their trap. Legit agencies always have a legit website with a whole lot of information you can read before you ever talk to them and then you have to call or contact them they will not try to trap you into a private conversation before you know information about them.
Getting Started with FE Sales

Hey Newby, thanks for taking the time to post all the information. I'll choose to refrain from the agency wanting me to sign a contract. I still don't get why they would put that they won't release me from any contract or carrier for 1.5 years- what is the incentive there? Why would they not let me go if I wanted to? Only thing I can think of that makes sense is that if I do well then, they'll try to keep me from moving.

I took a look at your website and did some more research on agencies and talked to some random agent as well, so I now have a bit of a better understanding on how all this works. I would definitely like to get on a call with you guys, if possible, find out some more information. Let me know the best way to get to you and we can set a quick call up.

And a quick question... you said that more than likely they want me to sign my commissions-what does that mean?

Thanks again.

 

[DonP]

I'm pretty sure the agency Nixon maker is talking about is directly with Amerilife or an agency with Amerilife . On the Medicare side Mungia and 360 make you sign a 5 year release contract ( it might be 3 yrs ) for the privilege of the POTENTIAL of free leads . Hardly anyone qualifies for the free leads . Were independent self employed contractors . Nobody pays my gas, car exp's, ss match or gives me a salary . I'll be dammed if they control my contracts .

As newby says these fmo's make a fortune on you . Make them earn it and make sure they'll release you immediately on request . This is a business relationship that can sour any time . Don't let them hold you hostage .Assigning commissions means your signing over your commission paid to you from the ins carrier . It means your fmo will be paying you not the ins carrier . NEVET NEVER NEVER do that .When you leave your business stays with them and you get no renewals . The beauty of insurance it's s renewal business down the line . That hopefully insures your not on the hamster wheel hustling forever . Actually Newby's a good one for you to talk to . He gives straight 110-120% contracts and he has the best fixed cost direct mail lead program around to help insure your success . He also releases you on demand as long as you have no debt .

 

[Newby]

Hey Newby, thanks for taking the time to post all the information. I'll choose to refrain from the agency wanting me to sign a contract. I still don't get why they would put that they won't release me from any contract or carrier for 1.5 years- what is the incentive there? Why would they not let me go if I wanted to? Only thing I can think of that makes sense is that if I do well then, they'll try to keep me from moving.

I took a look at your website and did some more research on agencies and talked to some random agent as well, so I now have a bit of a better understanding on how all this works. I would definitely like to get on a call with you guys, if possible, find out some more information. Let me know the best way to get to you and we can set a quick call up.

And a quick question... you said that more than likely they want me to sign my commissions-what does that mean?

Thanks again.

I meant assign commissions. You always want to be paid directly from the insurance companies. That way the clients are yours and no one can stop your money from getting to you.
If you assign commissions everything belongs to your Upline and any time he is disappointed with you he can stop any cash flow going to you and just keep all your commissions for himself. There is only one reason that an agency would ever want you to be licensed only and that is so they can have total control and screw you over anytime they are disappointed with you. And there would be nothing you could do about it. That is the number one thing you never never never want to do. And especially with something like Medicare sales that are so renewal based.

I'm happy to talk with you today. Just call our 800 number on the website and you will either get me directly or Mark. Let Mark know that you'd like to talk with me and I can give you a call back. Or if you just want to private message your number to me I will call you.

 

[Newby]

I'm pretty sure the agency Nixon maker is talking about is directly with Amerilife or an agency with Amerilife . On the Medicare side Mungia and 360 make you sign a 5 year release contract ( it might be 3 yrs ) for the privilege of the POTENTIAL of free leads . Hardly anyone qualifies for the free leads . Were independent self employed contractors . Nobody pays my gas, car exp's, ss match or gives me a salary . I'll be dammed if they control my contracts .
.

I had heard that but I can't believe that they can really get agents to do that. Free Medicare leads are a dime a dozen if you are selling a lot of dual eligables and willing to chase that market.

My advice to ALL agents is NO contracts to join an agency. Never, never, never!

And NEVER assign commissions. Never, never, never!

Those are two of the absolute worst things that any agent could ever do.

 

[rousemark]

I had heard that but I can't believe that they can really get agents to do that. Free Medicare leads are a dime a dozen if you are selling a lot of dual eligables and willing to chase that market.

My advice to ALL agents is NO contracts to join an agency. Never, never, never!

And NEVER assign commissions. Never, never, never!

Those are two of the absolute worst things that any agent could ever do.

Amen! and Amen! Preach it brother! The truth should be made known!

 

[nixonmaker2020]

I'm pretty sure the agency Nixon maker is talking about is directly with Amerilife or an agency with Amerilife . On the Medicare side Mungia and 360 make you sign a 5 year release contract ( it might be 3 yrs ) for the privilege of the POTENTIAL of free leads . Hardly anyone qualifies for the free leads . Were independent self employed contractors . Nobody pays my gas, car exp's, ss match or gives me a salary . I'll be dammed if they control my contracts .

So, I will say that it is not Amerilife but it could be a downline if thats what you mean by agency with Amerilife (I believe that's how it works, right?). I don't want to name the agency, but they mainly focus on final expense and term from what I understand though. I will also say that their commission structure seems like you get 70% as a beginner then go higher ONLY if you get an agent(s) under you and have to make sell minimum amount of premium a month otherwise they demote you back down. In exchange, you get various types of leads at cost. Online ones and direct mail, both fresh and aged. No free leads.

To me, this seems somewhat costly to join considering their contract you'd have to sign as well and the fact that other agencies offer 110-120%. I've decided I won't be joining this but tell me what you guys think.

I meant assign commissions. You always want to be paid directly from the insurance companies. That way the clients are yours and no one can stop your money from getting to you.
If you assign commissions everything belongs to your Upline and any time he is disappointed with you he can stop any cash flow going to you and just keep all your commissions for himself. There is only one reason that an agency would ever want you to be licensed only and that is so they can have total control and screw you over anytime they are disappointed with you. And there would be nothing you could do about it. That is the number one thing you never never never want to do. And especially with something like Medicare sales that are so renewal based.

I'm happy to talk with you today. Just call our 800 number on the website and you will either get me directly or Mark. Let Mark know that you'd like to talk with me and I can give you a call back. Or if you just want to private message your number to me I will call you.

Glad to know that insurance companies can do this, had no idea. So, you always want to get paid DIRECTLY by the carriers, got it.

I didn't get the chance to call today, but if you guys are open Saturdays I'll try soon, otherwise Monday will work fine.

Something Im beginning to realize is that a lot of agencies are technically downlines of a much bigger downline? If this is true, then that's definitely new to me.

Also, what the hell is legacy companies? I keep seeing legacy being thrown around but don't know who or what they are.

Thanks for the explanation again guys

 

[nixonmaker2020]

Something Im beginning to realize is that a lot of agencies are technically downlines of a much bigger downline? If this is true, then that's definitely new to me.

**Something Im beginning to realize is that a lot of agencies are technically downlines of a much bigger agency?**

Wanted to just edit my post but it wouldn't let me so sorry for double post