Insurance MLM Scam | $30k In Debt, Homeless, Living Out Of Car [My Reaction]

okay in this video I've come across a viral video on Tick Tock about a young man who was a part of an insurance MLM who is thirty thousand dollars in credit card debt about to file bankruptcy and living out of his car and uh this is a really important video to watch especially if you are thinking about selling life insurance or you're struggling selling life insurance a lot of the problems in this business stem from the IMO or the agency that you decide to join and so what I'm going to do is let this play and then React to what he's saying and give you some uh a background and some details as to what he's talking about so as if anything to just give you more perspective on making sure you make the right move to work in this business and if you do to work with the right agency or the right IMO because man it's everything it makes the difference because if you choose the wrong one as we will talk about it's a lot of scams that go on in this business that rip you off first and foremost let's begin I worked for a life insurance IMO the last two years and my life is now completely ruined I recently got evicted from my apartment I've been living out of my car for the past three months I am currently in 30 000 worth of credit card debt I'm going to file for bankruptcy and I'm only 24 years old I approve for everything that I'm saying I'm going to say this is purely just a personal story of what I have gone through during the time I've spent working with this life insurance company I want to emphasize I do not endorse any defamatory comments this is simply just a personal experience I've had and I hold the right of freedom of speech I'm yeah so I'll just tell you guys right now the particular company he's talking about I'm like a 99.999 sure have a history of cease and desist law fair this is why you can't find a lot of good reviews for this particular IMO they go after every single person in this space who is an influencer that has something to say they aggressively go after everything I believe can't tell this is the true or not I think they manipulate some of the reviews that are on say like Glassdoor and so what ends up happening is people like this dude they come in and they do the research right most people in this generation as well as mine uh do a research online to see more about what's going on and then they find out you know there's really not a lot of bad things a few bad things but nothing as terrible as this and and the only way you find out about this is these videos where it's very much like uh you know mysterious like we never say the name of the IMO and and there's a reason why because again I pretty much every influencer that I've ever talked to in this business has been sued by this particular IMO and so you can't say anything because they'll just they'll uh outspend you for alleged uh defamatory contents alleged right so it's all Bs and we wish we could get this message out there further so uh it could be clear let's continue I make this video for the sole purpose of warning people what could potentially happen to you if you decide to put your trust in people or imos that do not have your best interest but rather their own consider this part of your research which I desperately wish I had done this is a company that strongly encourages you to buy their leads and sell one specific life insurance carrier above all others even though it was among the most expensive it made no sense yeah so so a couple of things that he's talking about if you're branded this business so this particular IMO and this isn't one in particular this is a lot of them and this is what I rail on and have really since the beginning of my uh YouTube days back in 2014 and 15 is there's a big multi-level marketing influence in this business uh where it's all about recruiting people to recruit and one of the things that distinguishes a what I would call scam MLM Insurance Agency or IMO is that they don't just make money off of recruiting you in the sales that you make that's totally normal and respectable that's how you should earn it is through the success of your people but what a lot of these mlms do is they also turn in the lead generation side of the business into an enormous Profit Stream and so this is what he's talking about this particular particular IMO which many of these do sell cheap leads he's going to talk about it further resell them make a huge amount of money up front on the sale of leads before the guy even goes out there and attempts to sell anything and then couple that with selling a very high priced overpriced term product which in the Life Insurance space it's competitive and if you're not selling a competitive product then you stand the chance of getting being heavily replaced it's some people do okay selling a higher priced product it just depends on some variables but man a lot of the times it's as easy as somebody comes behind you in three months on a sales call and you can show somebody how they can go from 100 000 in term cover to 200 000 a term coverage and they just replace you it's just business right so you got to be very careful with this and he's going to go through this uh but I wanted to kind of set this up versus what we would normally do like what we do at my company we sell multiple carriers to shop around to get the best price because then you do the client well they have a great policy and it's not as easily replaceable so assuming this was a legit company I trusted them and did they seem to be like a very professional legit company with professional production and advertising and online training all that I made sales yeah and and that's the thing so one thing you got to understand guys if you're doing your due diligence and this is the key this is why he's doing this is because he recognizes most people don't do this is that the business here in in the insurance business life insurance specifically was very MLM based people are from this industry they come into this from the other mlms that are out there that sell non-insurance products and they take that kind of strategy of how to create an environment uh almost like a cult-like experience where people don't think for themselves but they get enamored with the money the lifestyle the potential and they throw everything at it thinking that this is the the road to chabola right and uh the point is uh you know you've got to think through this you got to do your research and because things don't always act as they appear and that is the thing that you have to understand in the business perception is not reality they we think that by default but you have to come into this with an air of skepticism a healthy level of paranoia as you look for an agency to join because it can mean the difference between success and failures consistently my upline would tell me I'm doing great shout me out on social media and send me encouraging texts but because of trying to pay off the debt I racked up from being what I felt scammed into buying junk leads I was having such unbearable stress of not being able to pay my bills going to bed hungry my hair was falling out collection calls receiving mail from my apartment telling me I'm late on rent and too many nights of laying in bed wishing I could end it all I'm not over exaggerating and I hope my upline is happy with my overrides I worked this job full-time hours while spending the rest of my waking hours doing doordash and I was making sales almost daily but for some reason was I still in this position I know I'm not the only one that this has happened to I've talked to a lot of people that have gone through the same situation I'm not just some flimsy life insurance salesman I was above average you'd be impressed hearing me on the phone now let's look at some numbers because I know that's what you guys want so here's the results from my damaging consistency in April of 2021 I started this business at age 22. here's my total deposits from the insurance companies it was 32 833 dollars and 25 cents for the first nine months from multiple carriers but mostly that that one specific carrier I was told to sell before all others even though it was the most expensive but overall not bad right I sold a good amount of insurance as a beginner I actually remember so so just just for some numbers here because this is an important part of of understanding what's going on here um what he's showing here is his Revenue this is not what he's banking after expenses he's about to get into expenses here so the business is not based off of what you make it's based off of what you keep certainly Revenue has an important characteristic and the outcome to net income but in the Life Insurance space you're likely going to buy some kind of leads and so there's an expense or what we call a cost of doing good or a cost of of goods sold or whatever cost of doing business that's what I was trying to say and so you have to factor that part into it and then there's also the other part of this is chargebacks ETC so there's a lot of math that goes into it this why the the production submitted isn't the only thing that matters as we say what you sell it's not what you sell it's what money you have left over after you uh buy the leads and make the sales remember going to a business overview conference in Uncasville Connecticut and the spokesperson of said specific life insurance carrier told a room of about a hundred people and I quote if you do not sell less first shame on you today I've acquired over forty thousand dollars in total chargebacks with that one specific carrier I was told to sell now this is where it gets a little um confusing here I will just surmise based off of if he's if he's deposited thirty two thousand dollars then he's charge it just it's it's a little strange here and I'm not quite catching the math of this and I've done this for a while so if you're watching this let me know what you think in the chat uh he's got forty thousand dollars in chargebacks okay so with chargebacks are when you make a sale and then the sale doesn't stick because it gets replaced or the client drops it uh and now you're in the possession of having to pay back that Advance commission so you get a loan where the policy is collateral in life insurance sales and so we hope the goal is to please stay on the books for at least nine months because that's the value of the advance we get is worth nine of the 12 months of the full commission for the year and what he's saying here is he's had forty thousand dollars in chargebacks again I don't know if he's saying he deposited thirty two thousand dollars but then he's had a total of forty thousand dollars in chargebacks that means he's had more chargebacks than he has actual deposits so has every single policy that he sold get replaced or was it dropped has he is this is this 32 000 after the Forty thousand dollars in chargebacks and and frankly I would say this again I've been doing this a long time when I see these kind of numbers again I I'm not commented on this guy's particular situation uh this is somebody who's writing I just wonder how good he is at actually not just writing the business but making sure it's the right kind and sticking and maybe that's the argument he's making by pushing these high-priced products he's gotten replaced a lot and that has influenced the amount of business that he's lost but my point is is that this is a very higher than average chargeback you're going to get people to change their mind and I've even seen and even with higher priced companies typically if you sell it the right way so there's a whole argument about how how you sell it you know it just doesn't something doesn't smell right with this much chargebacks and I'll say this too he mentioned again he's hope his upline is happy with the amount of overrides he made that's the upline making money well what's going to happen to the upline and I can tell you this in personal experience he's going to eat forty thousand dollars because every upline indemnifies essentially uh the advanced commission that the age it made and this is again for you agency Builders out there this is why you don't want to sell in my opinion for these one-trick Pony companies that are very high priced because and then recruit anybody and I'm not making any judgment ticket land this guy with a pulse because you'll have people write a bunch of bad business because they don't know how to sell and they're just very pushy and the people cancel it and all that advanced money if this guy doesn't pay his chargebacks it's going up to the upline a terrible circumstance and you can eat a lot of change or a lot of a lot of debt off of One agent like this guy so moral of the story this is why we don't recommend agents start recruiting until they actually have success first and they're writing good business because this is particularly bad with the level of chargebacks that's happened this is the risk that you can face as an agency owner but also as an agent too if you pick the wrong products the writer you sell the wrong way well so I had thirty two thousand eight hundred thirty three dollars deposited but I wrote way more trying to pay off chargebacks okay so the guy probably had written somewhere in the neighborhood of I would say and this is important for context probably 80 to 9 80 to 100 000 in business over the course of of it sounds like eight months which isn't too bad at all maybe out of 15 000 a month production type of agent um but losing half of that business is is just terrible and and again the reality is part of this can be blamed on the carrier selection you you choose for sure but the things that's hard to see here again I'm just playing both sides of the story here one side is the carrier selection but also who are we selling um how are we selling right because if you're too aggressive you're too pushy right and it's hard to pick that up just by watching this if that was the case but these are variables you have to consider right that can have an influence on who keeps what so it's usually a combination of issues here but he's 100 right in the sense that if you push high price you run the risk of being replaced by another agent that will come behind you and sell something else chargebacks were limited among the other carriers I was contracted with I'm a broker now here's how much money I spent on yeah and again he mentioned he's a broker so that means he has different carriers that are available to him but again because the company is so pushy on pushing this one high price company again I think it's like 50 to 60 percent of the business goes there but what the good agents that survive in this company realize is like I can't sell this crap it's gonna get replaced and they hear about people like this guy getting chargebacks and going into that so they work with those other carriers instead which just are just easier to sell in many cases they're better priced uh you know and the business sticks on the books in the leads they told me to buy from their CRM lead machine uh this was in the year of 2021 on I was told to purchase instant internet leads from my upline and the company's training videos one month olds and three month olds my upline and the company told me to buy these leads with my credit card and naturally if a company brings you on and knows what they're doing I'm gonna trust them right so I did I gave this lead company 24 137.88 for their leads in the year of 2021. I spent seven thousand four hundred six dollars and 67 cents and mostly gas as well as other various business expenses because I was doing in-home sales which shows you how hard I was working so that means I made a total of 1 288 dollars and 70 cents profit for working full-time for nine months you can start to see where the credit card debt begins mind you I did not have credit issues prior to starting with this company I paid my bills barely from doing doordash the remaining hours of my days and using my credit cards now before you go crazy in the comments I was in denial for a long time too I too would tell myself I'm gonna figure this out it's gonna work other people are successful here just buy more leads make more dials for two years of wasted time money and emotional toll my mental health unfortunately I have too much grit and hope I worked hard and invested money I put in the activity and made sales but it was never ever enough I understand this is a business but people that bring you on will train you to line their own pockets and could care less about what happens to you easily just remember here and this is coming from a guy who recruits agents right they do care about that because right now the guy that he's sitting on 40 000 in chargebacks uh and they roll up then he's gonna eat that and uh he's gonna have a huge expense that he's got to pay out of his pocket his up so I understand his frustration and anger but the truth is and then this this is the problem is that this kind of mentality of just who care not which carrier you write care not how you sell or having options just buy leads the crappiest that are out there and um just you know sell sell sell be pushy pushy pushy if that that mindset permeates from the top then everybody's gonna believe it but then what happens is again the smart-up lines that go through this realize that they can't do that you got to sell the right way you have to have to have this have to sell the right products because you're gonna you're at risk here like this guy's about to get hit with a huge chargeback debt potentially uh and he's not going to be smiling the upline at least everybody loses in this and that's the point when you when you set up an organization you're not going to hear this from anybody right you're not going to get anybody to to tell you this because they just want to talk about the Flash and the hype and the awesomeness of it and it is a great business but man there's so many opportunities to just get screwed and that's the missing thing that again hopefully this then I appreciate this gentleman doing this is providing the other side of this reality if you believe this crap leads were promised to be exclusive but to listen to this this is really important this Builds on the leads argument that we made earlier exclusive leads are those that you own personally you that are usually never resold and that it depends on the age he said they're a month old and three months old so listen to this because this is this is I think one of the biggest issues in this business with this particular item and many others too as well and why this guy suffered so much it turned out to be years old uh not exclusive and reselled to a dozen people basically every person I got on the phone with told me they get non-stop calls daily they were deceased they had sold their house years ago wrong number or they already bought insurance I was only able to sell enough Insurance just to stay caught up with chargebacks and break even with my Elite spend so so again what what you guys have to understand here is that the mlms out there have realized that you are the prospect for monetization to make money off of as much as selling policies and the way they do that and nowadays is they sell these bogus ass crap leads that really are just data like it's like it's some like you know survey type of lead where it's like win a free iPad if you answer a bunch of questions you all know what I'm talking about they're all over the place on the internet and they cost a quarter to develop right they can you can get them real cheap but then they go resell them for nine ten eleven dollars per lead and they resell them multiple times so what happens now think about this what happens is they they buy the lead for 25 cents they resell it maybe four times that's a forty dollar uh uh a realization in revenue for a 25 cent investment so their actual investment return is 39.75 for one lead one data lead and they sell these by the thousands a day they're making millions upon millions of dollars every single month and here's the catch before you actually are even give the opportunity to be successful so they've turned the business of providing leads into a business model that is literally a cash cow okay Imo's all over do this it's not just this particular company tons of them do this and the point is is that if you join an organization that pushes this crap it's because it's in their best interest because that is how they make the money they make and they make again what's the moral argument here it's this is like crony capitalism right they are winning in this business relationship where they're supposed to be your equivalent partner to help you be successful they are winning before you even have an opportunity to try to win it's not a win-win scenario it's a win-lose scenario right and they use your ignorance that you don't know anything about this business until you're like this guy and you're out of it and you're you're totally just in disbelief of how much of a scam it is they use your ignorance to turn you into a profit source and cycle in and this is why it's a mass recruiting model with these organizations because they cycle in the people who are hopeful that they're going to have some kind of success in their life and they don't realize that they are going to be the victim because the the whole the whole presentation like he said is professional looks good nobody would distrust anything but you don't know all the the lawfare that's going on behind the scenes how they monetize these leads and they end up screwing you so it's it's guys if you see this stuff I can't name the company because they'll sue me if I just even mention their name it's crazy if you see this stuff and you probably don't talk about you see this stuff Run please don't work with these people because this guy is just one probably hundreds hundreds if not thousands of Agents who've gone through something similar obviously from the numbers I talked about earlier what am I not allowed to post my real numbers corporate if you say that you're a bunch of Hypocrites pretty sure you got in some legal trouble for that I think it's inconsiderate and greedy for someone to hire a 22 year old impressionable kid into this business not explaining taxes or being authentic and clear of what may or may not happen I personally believe there should be a serious Crackdown on laws around the sale of leads because I think vulnerable people are completely taken advantage of I want to make clear this is my opinion and for yeah he's 100 right I mean that's the thing and that's why in this this particular IMO goes after young guys especially young single moms too I see a lot of those people who people who aren't necessarily entrepreneurs they're they're excited about being entrepreneurs they want to have success they see life insurance as a great opportunity and they show and tell them everything they want to hear oh it's easy there everybody's a prospect everybody can be successful at this this is what this particular IMO owner says all the time and then they go into this and and this happens to them and they're on they're again totally unaware of of what's going to happen and you can't find this kind of content when you do some kind of preliminary examination if what is being said is true and so people are going to say hey there's not a lot of bad stuff about them oh yeah a few people say it's bad blah blah blah and then they join and then a lot of them get screwed so it's 100 True um you got to be again if you're getting involved in a life insurance section A Lead is not a lead is not a lead like there are there are good leads out there that actually people really did request information that aren't resold a number of times and are good quality but what he's talking about is other utter trash and it has screwed so many good well-meaning agents out of what I believe is a fantastic opportunity given the right organization to join for corporate watching this video do you even care it almost feels like this company has no remorse or sympathy whatsoever for bringing on and settling leads to a young impressionable people like myself again this is my personal opinion and I'm not stating this to be factual it's just my personal opinion my journey continues but I don't want to make a 20 minute video I was eventually able to sift through all the lies and stop selling this specific carrier and I figured out a great system generating my own leads but at that point it was just too late I was yeah and this is this is what happens to a lot of Agents is they they finally figure things out they realize that who they thought they trust they can't they realize there's this whole systematic environment of basically taking uh the people out to the coal the herd and then the rinse and repeat and the meat grinder and then by the time you realize it you're out of money you realize there's still opportunity in this business but you don't have the way to finance your lead system to make money uh and and to do it in a way that's duplicatable and scalable like which is why you came in and again it sucks man it sucks and it's it's so prevalent it's it's a damn shame it's too deep in the hall falling further what I believe to be scams lead scams what I believe to be in my opinion and selling that company too much it was just that it was a joke for God's sakes do loads and loads of research before you accidentally ruin your life like I did so uh my advice of this guy um you're young you'll be all right hang in there let your credit cards go to default uh you'll you'll be fine there's Life after bankruptcy actually one of the most uh the common things all millionaires have is they've been bankrupt at one point or close to bankrupt and I can tell you this uh I think his name is uh Brock hey Brock let me tell you something Brock I got in my business uh I work with a good company but I screwed up because it was my I made a bunch of dumb mistakes as a young agent when I was 26. 26 27 and I made I got away from the fundamentals had every opportunity to succeed but it was my fault for the mistakes I made and I found out too late and I had like 97 in my bank account and I had to go to my wife at the time and admit to her that she was right she never liked that to give me selling insurance and I didn't know where the money was going to come from and I don't know how I did it but I got back on my feed I got a full-time job I got you know a Back Square away and then I realized through this process of of reflection that this was a mistake that I caused right I'm responsible because you know in my case you know I I didn't do what I was supposed to I had the luxury of being told and uh I went back part-time I bought leads but the thing I vowed was now based on what I know I'm never gonna make this mistake again of getting away from the fundamentals and I'm going to follow the system as I should and it took me a couple years but I paid off my debt I had like I had like 30 40 000 charge and not chargebacks but um credit card debt I had just tons of debt um it was bad and I paid it all off and it took time and all I could say is from from one guy that failed the business to another that's extremely frustrated and and I I couldn't imagine what you're going through uh hang in there man uh you will get through this uh long term you'll survive don't give up on this business this business is fantastic I'm so thankful that I I stuck with it versus going somewhere else like the corporate Arena uh where they do screw you uh across the board uh so long story short uh stick with it man don't give up and for those of you out here watching this um stick with it you know do your due diligence Brock's 100 right there are lots of opportunities in this business uh but there's a lot of pitfalls lots of pitfalls more pitfalls and opportunities and and if anything that we can take from brockets do due diligence look for an agency to join that has your back that's not a an MLM recruit people to recruit Kool-Aid drinking shop and and that has your best interest in mind they exist out there if you look you'll find them they're not going to be flashy they're not going to be showing off their stuff they're going to be concerned about how to help you sell be successful and help your people your prospects get the most results so hopefully this video was good got some learning out of it and please be careful out there do your due diligence to say this company this this business is awesome but you can make the wrong move and it can end you completely

Channel: The DIG Agency!

Views: 17,561

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Id: uHWrwtr9ANM

Length: 26min 23sec (1583 seconds)

Published: Wed Jun 28 2023