Don't let insurance companies (or managing agents) charge you for leads that you don't want. We hear this story often. The leads are terrible and the agent is stuck paying hundreds, sometimes even thousands of dollars for leads that they never wanted in the first place. Do your own in depth research of a company before you sign up with them. "Lead debt" is a common scam in this business. We recommend looking on the Better Business Bureau website to research a companies complaints before singing up with them. If agents have had trouble with being charged for leads that they didn't want, it will be on the BBB site under the companies complaints. Research every company you do business with. Even if they say they have an A+ rating, we recommend looking them up for yourself. Sometimes companies say they are A+ rated by the BBB, when they are not. Check out our BBB rating (it's an A+) here...
LOA contracts are a hard concept to grasp and they come in various forms, but we will sum up the most common LOA contracts in a simple way. LOA = Third party pay and no renewals. Most LOA agents do not get renewals. LOA agents are paid by a middle man, not directly from the insurance company, but from a subsidiary agent or agency. LOAs are
licensed only agents, or agents allowed to sell for the company they signed up with.
This means that your uplines are the ones who usually get the renewals. LOA agents are also extremely vulnerable to the company that pays them. Your best bet is to make sure that the middle man is legit since they have all control over your money.
Giving Money Up Front
We are surprised at how often we hear this one. Agents are asked by shady agencies to send money in for leads before they are even appointed with the company. Do not send money to any agent or agency that has not committed to being affiliated with you. Be careful this is a common scam in the insurance community. The only way to get your money back is small claims court, which ends up costing more than was lost in leads. We never ask you for money up front to become appointed with us. Your only initial cost would be your leads, which all come with our guarantee, so you have nothing to lose.
The Free Lead Scam
Don't buy into this scam. There is no such thing as a free lead. Someone has to pay for it. Free leads usually means, old, recycled, worn out leads. We have yet to find a free lead system that actually works in our 28 years in business. The cost of leads is always increasing, and we eat a lot of our agents lead cost, so that they can make money. These so called "free leads" are cold calling data lists that have been pulled from a public online data base (usually the do not call registry) that have no interest in what you are selling.