Telephone / insurance / scam...........?

[uncle Alan]

Young friend has been offered a phone sales job. No soliciting,people wanting a policy call her. She will have to pay an enrollment fee of $50 but will get v$100 for each policy written. Looks good so far ? Maybe not. For each month the policy remains in effect she is supposed to get $ 200 .

How large a policy needs to be written to provide that much spiff ?

Anyone else believe it's a scam?

Replies solicited.

Uncle Alan

 

[Esav Benyamin]

Without knowing someone who's made money at it, I say it sounds like a scam.

I would ask Ren the devils trail boss what he thinks, he's been in sales.

 

[powernoodle]

For each month the policy remains in effect she is supposed to get $ 200

That would require someone to be paying a monthly premium sufficient cover the risk (i.e., the actual insurance), plus her $200, plus a ton of built in profit for whoever is running the thing. Makes no sense to me.

And making her pay $50 up front would scare me off right there.

:thumbup:

 

[Cougar Allen]

She will have to pay an enrollment fee of $50

That is all we need to know. When you get offered a job the employer offers to pay you. When someone says he is offering you a job and he wants you to pay him, that's not a job it's a swindle. :thumbdn:

There are plenty of them around. They will tell you wonderful stories and the stories vary greatly, but they all have one identifying characteristic -- the swindler wants you to pay him.

 

[Rugger]

Even as tight as things are- I'd say no to that one. Somebody is looking to pull a fast one or take advantage of a bad job market.

 

[mycroftt]

Advise your young friend never to accept any position where you have to pay the person money before you go to work.

 

[Gollnick]

That is all we need to know. When you get offered a job the employer offers to pay you. When someone says he is offering you a job and he wants you to pay him, that's not a job it's a swindle. :thumbdn:

Exactly! This "offer" is a big scam and Mr. Alan should advise his young friend to run away from it.

 

[Centaur]

$200 per month the policy is in effect sounds fishy.

Typical commissions on a policy would be half of the first year's premiums.

 

[Gollnick]

If there is any insurance, it is doubtlessly all but worthless, a scam as much as the job. So, sales will be poor and when you do make a sale, you'll be part of scamming some simple-minded, poor, old widow out of her pension money.

 

[SPXTrader]

I've got to say this sounds like a scam, as others have already stated. When I first got into the securities industry (1986) I went ahead and got my variable insurance (annuity) license while I had the time. I kept it about 3 years and let it lapse. Not my cup of tea.

As for the normal payout schedule, the selling agent usually gets 50% of the total first year premium, paid up-front and applied to his shop's pay-out grid. If the policy isn't held for the entire first year, the selling agent is charged-back for the difference.

In your friends case, tell them to avoid this situation.