You wouldn’t have expected that multi-level marketing schemes exist in the life insurance space. But they do. Compared to other niches where multi-level marketing schemes thrive, like health and wellness or fashion, there aren’t really a lot of life insurance companies that use the multi-level marketing model. It doesn’t really make sense to me, honestly. I still can’t wrap my head around it, to be honest. How would that even work?
Family First Life is one of the few life insurance-based multi-level marketing that exists. The company was founded by a man named Shawn Meaike in 2013. Shawn had some previous experience working for another life insurance-based MLM. It’s common in multi-level marketing companies for people to establish a company that exists in the same industry as their previous jobs. It’s not just in life insurance industry. The founder of Arbonne, Petter Mørck, had some experience working in the skincare industry prior to him establishing the company. Sometimes it’s easier to establish something that you have prior knowledge and experience in.
While I was researching for this article, I found out that the life insurance MLM company that Shawn worked for actually sued him for allegedly poaching some of that company’s affiliate members when he was about to resign. The reason for resignation is that he was going to establish Family First Life. Apparently there were a few people that he managed to poach from the previous company. And they seem to part of the corporate board. I found this little tidbit to be hilarious.
Surprisingly, Family First Life doesn’t actually sell its own insurance policies. I had kind of assumed that they actually had their own insurance policies. But apparently, they don’t. The company is actually an IMO or an independent marketing organization. IMOs basically serve as middlemen, in a way, between the actual life insurance provider and the people who are getting life insurance. IMOs partner with a lot of difference insurance providers through a network and they sell it to potential customers. People who work in IMOs earn commissions from any successful sale. IMOs are basically contractors.
There is no cost to join Family First Life. I guess it makes sense since you’re technically applying for a job. Normally, you would sign up for a multi-level marketing company’s affiliate program. You usually have to pay a fee, either one-time or recurring, in order to become a member. Once you’ve become an affiliate member, you will then begin to sell products and recruit people to join the affiliate program. That’s how you qualify for commissions.
Even though there is no cost to joining, you do need to pay a lot of money in order to sell insurance policies. What you’re going to pay for is what’s called a lead. Leads are people who are interested in purchasing a certain product or service. It’s a common term used in marketing. Often times it involves a process called a marketing funnel. Oh, I actually didn’t mention how much it costs to get leads. It costs $1,500 a week to get leads. Family First Life partner with a third-party provider that will give you leads every single week. So, in a month, you will have spent at least $6,000 for those leads.
The one thing about leads is that not all of them will actually buy an insurance policy. Like I said, they are currently interested in purchasing a certain product or service. But interest doesn’t guarantee that you will actually have a successful sale. Leads go through a lot of steps in the marketing funnel before they actually become customers. I mean, funnel doesn’t seem like the right term. It’s probably better to use filters. Filters have many difference sizes. Not everything that you filter will still be there when you need it.
Compare to other multi-level marketing niches, it’s harder to earn money from a life insurance MLM. Earning money from an MLM was already hard enough. Now you have to sell life insurance? Not everyone will be interested in buying it. A lot of people actually lose money from being part of an MLM. About 47% of people who joined an MLM lose money from it. And another 27% only break even with their earnings.
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