Greetings and salutations it's David du Ford here at the final expense, agent mentor, and mortgage protection agent mentor. Where I help agents. Like you, succeed in selling insurance. The topics of today.
the article is mortgage protection agency scams to avoid so the reason I'm. Putting this article together is because a lot of the mortgage protection recruiting business maybe scams me isn't the right word, but it's.
Kind of suspect - and I think it's - important that you understand before you - pull the trigger on any particular organization. What the reality is of the mortgage protection agency recruiting that's most common out there so that you can make your own mind up as to what kind of organization fits best because a lot of these organizations are what we'll Call multi-level marketing, they're, focused on blue sky and showing you their Ferraris and fat stacks of cash, but they don't ever actually tell you how they do it or put together something of substance.
So if you have a little bit of skepticism good, that's, a good start and what this article will probably end up doing is help inflame that skepticism even more, but at least kind of give you some advice and what to stay away from So the first thing you want to stay away from is what I call blue sky focused agencies.
These are really easy to find. For example, you will see things such as hot cars. You'll see airplanes, you'll see fat stacks of cash. Rolexes people inexpensive, three-piece suits. These things are what these agencies are doing or using the classic sales method of selling blue sky.
So blue sky sales refer to selling the opportunity telling how amazing the opportunity is and fantastic everything is with this particular organization how your life's. Dreams will come true if you & # 39.
Ll only sit from the cup of greatness that this organization provides, and they rely a lot on this sort of big picture top-level type of imaging the problem with these organizations. Is it's great, to have awesome goals like that problem? Is there's a lot of times these organizations just don't, have the infrastructure to really follow through thoroughly to develop and help develop your skill level as a mortgage action agent? So they make up for it by giving you these great examples and stories that people who recruited a thousand people making a million a year and a half drive fast cars, and they get.
You worked up in this dream, as opposed to pulling your head out of the clouds and getting your nose and head down to the floor and working your ass off. So it's, important to understand that at least have some skepticism for those organizations.
They're, not all bad per se, but they're, not necessarily designed with the producer you in mind to maximize your income, to maximize your quality of doing business and your quality of your career so think to be concerned.
With number two or recruiting focused organizations and a lot of these, these concerns all kind of fit together in the same kind of organization. You'll, find all of these problems and usually the same organization, but when you find a recruit when you find an organization that spends more time, especially early on telling you how you can get, you can recruit everybody, you know to sell this product And how great it is to have passive income? You're likely in a position where you, as a producer in developing your skill, are not necessarily the most important thing.
A lot of these organizations that tell you how important it is a recruit. A lot of these guys that are going out there selling this dream have never sold the first policy, so you got to think well. If my goal is to sell mortgage protection, how can I learn from somebody who's, never sold any kind of insurance whatsoever? All they & # 39.
Ve done is sold the opportunity, so you can see where this kind of follows. Naturally, right you're, not necessarily in the best position to maximize our success. Point number three to be concerned about is low commission-based opportunities.
So a lot of these organizations that are multi-level marketing based that recruit for mortgage protection agents will start you at very, very low commission levels and they never give you any sort of relative comparison.
It sounds good based on the numerical projections that give you on what kind of premiums you'll sell and how the business is and how it will look on paper. But the problem is, is those projections are just illusions? They're based on you know what sounds good on paper, but in reality, it mortgage protection business, a problem when at least you're gonna have to invest in your business through direct mail in order to get fresh leads To work on a weekly basis, well that costs money.
So you got to make enough money off of your Commission's to cover those costs and the reality is you're gonna have good weeks and bad weeks, and why would you give up so much commission once you find out What the options really are out there, when you're, giving it up to people above you that aren't necessarily doing anything to help you out.
Eventually, they're. Just you realize they're, just using you to make money off of you without really putting much into the process. It's, a very lopsided agreement, so you want to find an organization that's.
Gon na pay. You a good Commission, so what's? A good Commission somewhere close to a hundred percent commission first year for mortgage protection products is a good place to begin. Looking. Some may pay less and may pay more, but somewhere in there is a lot better than what a lot of these organizations recruit at like 50 percent of sixty percent.
That just is horrible. You trust me: when you're, paying the kind of money you have to get quality leads. You have a low threshold of covering those costs with commissions that low concern number four organizations that push and push and push for you to buy leads.
So a lot of these multi-level marketing organizations got really smart and decided that a good source of income for their business was to push leads. So when I say push leads it's, not that I'm against leads.
I believe in leads, but the problem is: is they push the sale of any and all types of leads on you at any price point that they can get you and a lot of the time these leads are recycled. They're aged.
They're, not very good quality. They've been worked by other age and successfully already, and they just end up being a waste of time, as opposed, if you just bought fresh leads. So, but what's great for the insurance agency? That's? Recruiting you is that's, all profit right? They paid the cost of those leads to somebody else bottom.
They made a comp on it or made a commission off of it and now if they sell them again for five bucks. Well, that's, five bucks and pure profit, and if they do that a thousand times a month, it's. A lot of extra money for their agency and that's, why they build a lot of their approach around reselling and recycling.
These leads so just be a little aware of that. This is kind of the least concerning out of all of them. You need leads that would be successful in this business. I believe in selling mortgage protection specifically fresh and exclusive leads, but just kind of watch it as far as how much they push the lead angle.
Reason number five to be concerned with is captivity. Focused agencies, you, as an insurance agent, are essentially a business owner. You're paid 1099. You're paid as a 1099 contractor. That means you have to pay your own taxes, both sides of the federal income taxes.
You have to you, have deductions you have to take and you have to motivate yourself to work. By all intents and purposes, you should have complete control over the destiny of your business, and when you enter a captive organization, you're, basically acting as if you're, an employee, even though you're, a business owner Here's, what I mean captivity in the insurance world usually refers to having force upon you only one option for a company, and when you have one option for a company, you limit your options to sell the most of your prospects.
When no company is going to be the best choice for all circumstances, and by willingly hog-tying yourself to options, you're, putting yourself in a dis, advantageous position where you & # 39. Ll, lose sales.
Where you won't make sales. You could have because your product, just doesn't, fit appropriately. It's better to be what's called a brokerage or an independent situation where you can contract with different carriers and really just run your business like a business.
The last important point here is point number: six, which is being not vested so vest station is a legal contract with insurance carriers that stipulate who owns the book of business that you're right. So, for example, when you write a book and you're 100 % invested or when you write a piece of business and you're, 100 % invested from the first day that piece of business.
That client is yours. You will continue to be paid the commission on that deal foreseeably. However, if you're not vested and your contract is terminated, future commission payments are paid to your upline at that point or somebody else in your hierarchy.
What's? The problem with that, well, you paid full price for the leads. You took all the time to find this deal close to it. It should be yours in theory. It only makes sense, but what the contracts can stipulate is they could take that future commission away from you and give it to somebody else who, frankly, didn't do the work you did to get that business.
So my recommendation is before you sign anything make sure you confirm that what you're signing vests, you, 100 % from the first day from the first carrier contractor right or policy right, but you're 100 % invested immediately and that No matter what happens with the relationship with your agency, you're in that you & # 39.
Ll, continue to be paid on your business as you should. I do hope that these six concerns are worried about when looking to sell mortgage protection really helps you more crystallize. What you need to be concerned with to help develop your discernment as far as what your better options are for coverage is for entering into this business.
If you'd like to see what I do, I do recruit mortgage protection agents. I have an entire sales and marketing system that I teach and coach and mentor. You can definitely check that out at the mortgage protection agent, mentor, com click, the contact box.
Send me a message and I'll. Tell you what I got to offer to see if it makes sense for you in the meantime, please like and subscribe. If you haven't already, I do five articles a week like this and also make sure that you leave a comment or question below.