When to walk away...

[TripleH]

Lol! That’s EXACTLY how I feel about FE

My ass be confused af when I get in the home and they’re like “I want $300k mortgage protection” but they are like 82, just got out surgery, on hella meds. Then they’re like “$10k coverage is that all? I want the whole thing, I want term, and I only have $40 a month to spend!” ....

I inadvertently lost out on a lot of sales because I didn’t know how to handle what I thought were MP leads who turned out to be FE

I’m getting a bit better with the FE market.

You ever need ideas on the MP....I got ya fam

Thank you! Feelings mutual I am definitely pretty good with underwriting if you ever need help without trying to be recruited shoot me a text 704-724-3648 with meds and health conditions and I can point you in the right FE direction. What I generally do, and you probably do it in the same way but may word it differently, is I explain to them they may want a Ferrari but can only afford a Honda and there’s nothing wrong with that Mrs. Mary, but money doesn’t buy life insurance, your age and health does.. so my job is just to look through the state regulated program and show you what you qualify for. Does that make sense?
It does, okay perfect.
I’ll get to work for you, can you just go grab me a list of your meds or the bottles thank you (telling not asking, not being an order taker)

 

[TripleH]

Home Service is thriving in the independent sector. Liberty Bankers Home Service has experienced phenomenal growth. In fact, in the early years after LBL first got into that business, one of the home office executives told me it was the only division of the company that was profitable right out of the gate. Security National’s home service division is also in major expansion mode. A couple of months ago I was contacted by a market researcher working for yet another carrier who’s considering getting into that market. So, I respectfully disagree that the home service system is in decline.

Market consolidation like you’ve observed with Kemper is common in all facets of this business. It is not indicative of the health of a market sector. If that were the case, the fact that so many FE IMO’s are consolidating under just a handful of NMO’s would be a frightening portend.

What is on the decline in all sectors is the career agency model. It’s just too expensive to maintain an employee agent force. The future of home service, as with most insurance distribution channels, is with the independent agent.

As far as it being a grind, you’re totally right. It’s hard work. But worthwhile, rewarding, and actually more profitable than you might think. But, no, it’s not for everybody. So, send me your cast offs! I’m able to work with lots of folks that won’t be a good fit for you.

What state are you in I might have cast offs. By in decline I meant long term 10, 20 or 30 years out which is my working career. With the way technology progresses I think that market just won’t exist in the long run, so now it might be doing well but I don’t see it being a sustainable business model down the line for me personally. But like you said we may disagree on it (yours may come from actual experience with carriers telling you, mine comes from the field agents I am replacing and the clients I am seeing), my time horizon is a little further out and like you said it’s hard enough to find people to work these days, so the grind don’t come easy to most but for those willing to actually do it, it may work very well. I just know from my personal experience that the turn over rate seems to be extremely high with Reliable and American national, perhaps a little higher than with Indy agents.

 

[shonceman]

Wow I did NOT know it was 40% and 20% For life. I wonder what the persistency is. What do you mean he can collect by not leaving his house?

Persistency is not as good as bank drafted. The company standard for LBL HS is 60%. I usually run in the 70-80% range. By collecting without leaving my house he means I can take a debit card over the phone. So, some of these people could be set up on automatic draft, but would probably have multiple NSF’s. They just do better if I call them for the payment.

That’s a ton of value, now I know why those reliable agents fight tooth and nail when I’m replacing their business.
So once you build a book of 200k, you’re making 80k a year in income for the first 10 years. Is the combo 40% on new business and is that all as earned? Thanks for the great content!

Top GA comp on new business is 75%. Most agents get 65-70%, depending on prior experience. For LBL it’s all as earned. Security National’s comp structure is different and usually lower overall, but I believe they will set full time (semi-captive) agents up on an advance system. Kemper agents contract is completely different. Those guys aren’t fighting to keep renewals. Unless something’s changed in the 2020 contract, they’re fighting because if they lose a policy, no matter who wrote it or how long ago, they get charged back 100% of the FYC.

What state are you in I might have cast offs. By in decline I meant long term 10, 20 or 30 years out which is my working career. With the way technology progresses I think that market just won’t exist in the long run, so now it might be doing well but I don’t see it being a sustainable business model down the line for me personally. But like you said we may disagree on it (yours may come from actual experience with carriers telling you, mine comes from the field agents I am replacing and the clients I am seeing), my time horizon is a little further out and like you said it’s hard enough to find people to work these days, so the grind don’t come easy to most but for those willing to actually do it, it may work very well. I just know from my personal experience that the turn over rate seems to be extremely high with Reliable and American national, perhaps a little higher than with Indy agents.

Reliable is an extremely stressful contract to work under, and hard to make decent money. No surprise they have turnover. Yet I know agents over there that have been there multiple decades. The best usually go into management, which is where the real money is. I think American National has a better contract as far as captive operations go. Their retention is better, and seems similar to most independent FE shops. Indy home service gets a fair amount of turnover, as well. Like I said, it’s a tough gig in the early years. Just like any business, it takes a combination of qualities to do well, not the least of which is the ability to persevere.

 

[shonceman]

What state are you in I might have cast offs.

Hey, I’d appreciate that! I’m in Texas. I run a debit that’s mostly in Dallas, but I have clients in other locations that pay by phone or mail. I’m actually licensed in Texas, Louisiana, Oklahoma, Missouri, Kansas, and Virginia. (I started in the business in Virginia, and still have clients there.) I’m mostly writing bank drafted FE business in other states, but I also have a few debit clients in some of those states.

 

[Life Hawk]

Personally I only like to walk away after I make the sale.

 

[shonceman]

Personally I only like to walk away after I make the sale.

I drive away really fast in case they change their mind!

 

[WinoBlues]

So, send me your cast offs! I’m able to work with lots of folks that won’t be a good fit for you.

Doing joint work or professional referrals is smart business. I assume there is a lot of business going back and forth with forums members.

I have split or taken or given business to a bunch of people here. Ben's, Newby's, Munga's, Todd's, Matt Schmidt, Toby (whatever happened to them?) and several captives. P&C agents are awesome clients and referrals.

 

[Life Hawk]

Doing joint work or professional referrals is smart business.

Hmm... are you and the Monkey working together?????

 

[rousemark]

Hey, I’d appreciate that! I’m in Texas. I run a debit that’s mostly in Dallas, but I have clients in other locations that pay by phone or mail. I’m actually licensed in Texas, Louisiana, Oklahoma, Missouri, Kansas, and Virginia. (I started in the business in Virginia, and still have clients there.) I’m mostly writing bank drafted FE business in other states, but I also have a few debit clients in some of those states.

I inherited some home service business several years ago. Just turned what was left over to the HO. With the exception of one case, all of it was on mail pay so I did not have to collect it every month.

 

[rousemark]

I think American National has a better contract as far as captive operations go. Their retention is better, and seems similar to most independent FE shops. Indy home service gets a fair amount of turnover, as well. Like I said, it’s a tough gig in the early years. Just like any business, it takes a combination of qualities to do well with, not the least of which is the ability to persevere.

American national home service agents are unionized.. That might have soemthing to do with the better contract and agent retention.. It is the only insurance company I have heard of that had an agent union shop.