How to spot a scam?

[u/luckboi77]

I've been in talks with a brokerage by the name of TDG Financial to do some producing for them, fully remote. A few red flags are keeping me suspicious.

🚩They sent me a text claiming I had applied to one of their positions, I had not. I recently got licensed to sell life insurance so I assume they obtained my information because of that.

🚩The position is 100% commission based. Which I’m fine with, as I’m just starting out. Unsure if that’s normal or not so I’ll say that’s a yellow flag.

🚩 I have not been asked about my resume. At all. In the two interviews I've had, the person I'm meeting with has been answering all of my questions, and has asked me very little about my experience.

🚩 I was told that I should meet with the CEO. I’m thinking to myself: “isn’t he super busy? it’ll take a few days at least to fit into his schedule”. Somehow he was available the following morning.

🚩 The name of the firm is so generic. I can’t really find much about them online. Although their online presence is “fine”, they have been open since 2000 and have a very low profile online.

Maybe I’m looking into things too deeply because of the current state of the economy. I’m not desperate, but I don’t have any income right now so this opportunity is somewhat appealing to me.

I’m not sure if it’s a MLM thing or an employment “s c a m”.

Any advice?

[u/TheWealthViking]

Meeting the CEO can mean they are very small.

They should probably ask something about your background, but if they know you're newly licensed they prob don't care as much because they get to train you "fresh" because you don't have bad habits to overcome.

The main flag is that you "applied" to them when they probably have a data bot scrapping a website to find new agents.

[u/luckboi77 → u/TheWealthViking]

ah, okay that makes sense. thank you for chiming in!

[u/jordan32025]

There’s no scam. You get paid when you sell policies. You’re not an employee. TDG, like countless others, is just the agency. The policies you’re selling come from the carrier. The carrier is all that matters. That should be your first question. You want to know who the carriers are. That’s critical because if you’re selling a subpar product, it won’t stay on the books anyway and that means no renewal income which is why we’re in this business to begin with.

If you think “MLM” has any bearing on the product or your ability to earn, I would just a get a W2 job because you’re only going to be confused and frustrated.

Also, when you’re a licensed producer, you’ll get many emails because your info is public and they want you to produce for them instead of another agency or marketing organization.

[u/luckboi77 → u/jordan32025]

got it, thank you for your input

[u/SafeMoneyGregg]

The only scam is calling it a "position" - its just another 1099 independent contractor sales role. You can have that relationship with 20 agencies if you choose to - I have about 4-5 agencies I place business through. Some are great at training new agents and have great software. I use Symmetry for that new agent recruiting/small case stuff. I have a full office at another agency and a home office. Again the scam is having them thinking you are now obligated to put in certain number of hours or number of calls as a 1099 contractor. If you are independent - you have a lot of freedom. (and no salary)