AFLAC (American Family Life Assurance Company) is an MLM.
I thought I took a great job with a reputable company about 5 months ago. I have since learned that Aflac is an MLM and is extremely close to pyramid scheme territory. Not only this, but they only hire contract workers, and they give you the “You are your own boss” pitch. The group interview is run by one of their more skilled sales reps selling you on the idea that you can find success just as easily as X or Y person has. The products themselves are good insurance-like products, but the actual business practices are horrible.
It is not that easy, and they will exploit your labor.
The roles are commission based, however, a majority of the work doesn't involve actually selling insurance but attempting to get business owners to allow you to implement Aflac at their business. I thought I was going to be an “Enrollment Specialist” but the position is more of a door-to-door business salesman.
There is a huge emphasis on new agents as well as their higher-ups to recruit regularly.
I'm talking about group interviews every week, 3-4 days per week. The district sales coordinators (DSC) have to outbound cold call sales professionals for an hour each Monday. There are 2 RSC's (regional sales coordinator), 7 DSC's, and around 40 associates in my office. New recruits, such as myself, are told that they can help too and that they will make a 5% “override” off of everything their recruit produces.
The commission structure itself is exploitative in nature.
The “Advance” that you receive within 2 days of writing new insurance policies is paid forward by Aflac so that the new associate doesn't starve of course. However, since the policy premium hasn't been paid by the customer yet, if an agent were to leave the company, they would OWE Aflac that money. Not only this, but if the business owner doesn't pay the bill the same thing happens. My DSC said it's completely normal for new associates to owe Aflac money their entire first year. One of my coworkers has worked there for 2-3 years and still owes them money. Once you owe them so much, they start to take out of your commissions between 5-25% depending on how much you owe.
It sort of feels like Debt Bondage to me. I feel like I'm indentured, yet continuing to work here seems counterproductive and necessary at the same time. How can a first-year agent ever leave? Let alone a veteran career-type individual?
I am curious about what this Reddit thinks and I would like to start a discussion around this kind of commission structure. Is it legal? Does it feel normal? Are other insurance agencies like this? Please don't poke fun at my poor job choice. -_-