Are any of y'all buying this LOA stuff?

[tribetime32]

There is a very prominent IMO that is touting the ability to "prevent chargebacks and debt rollup" by going LOA. I've learned that there isn't anything new under the sun in this business, but man this one baffles me.

How can agents really not see what they are giving up?

Apparently they have an option to stay a broker, but if a group is putting this much energy into something like this how much support is the independent guy who isn't giving up his book going to get?

Any of you guys come from this space to help shed light on this?

This seems like a greedy train wreck waiting to happen. Perhaps we can innovate a solution!

 

[HoosierLife]

Nice pun.

 

[Newby]

There is a very prominent IMO that is touting the ability to "prevent chargebacks and debt rollup" by going LOA. I've learned that there isn't anything new under the sun in this business, but man this one baffles me.

How can agents really not see what they are giving up?

Apparently they have an option to stay a broker, but if a group is putting this much energy into something like this how much support is the independent guy who isn't giving up his book going to get?

Any of you guys come from this space to help shed light on this?

This seems like a greedy train wreck waiting to happen. Perhaps we can innovate a solution!

You need to appreciate them. IMO's that screw over agents have been around since the telephone was invented. Probably even before that. If it wasn't for the bad ones how would agents recognize the good ones?

I hate to say this but agents are actually more appreciative if they came from one of those places that screwed them over. I hate to see anyone get screwed over in the first place. But if they have never been screwed over they don't quite recognize all the stuff a good IMO does to make them successful. And all the stuff a bad IMO does to screw them royally.

 

[tribetime32]

You need to appreciate them. IMO's that screw over agents have been around since the telephone was invented. Probably even before that. If it wasn't for the bad ones how would agents recognize the good ones?


I hate to say this but agents are actually more appreciative if they came from one of those places that screwed them over. I hate to see anyone get screwed over in the first place. But if they have never been screwed over they don't quite recognize all the stuff a good IMO does to make them successful. And all the stuff a bad IMO does to screw them royally.[/QUOTE

They are certainly making our jobs easier for sure! I hate to see agents in this situation as well, but I know I wouldn't appreciate what I have as much if I didn't come from a bad setup.

 

[theinsuranceman]

There is a very prominent IMO that is touting the ability to "prevent chargebacks and debt rollup" by going LOA. I've learned that there isn't anything new under the sun in this business, but man this one baffles me.

How can agents really not see what they are giving up?

Apparently they have an option to stay a broker, but if a group is putting this much energy into something like this how much support is the independent guy who isn't giving up his book going to get?

Any of you guys come from this space to help shed light on this?

This seems like a greedy train wreck waiting to happen. Perhaps we can innovate a solution!

Sounds like the IMO will pay you a set $$$ amount for each piece of business you write.....maybe pay the the $$$ amount of the 1st 3 months premium to the agent. Then your IMO keeps months 4-12 FYC and then keeps the renewals for themself. They also are the ones to absorb any charge backs.

I believe I saw Jignesh posting this on FB recently.

 

[rousemark]

Sounds like the IMO will pay you a set $$$ amount for each piece of business you write.....maybe pay the the $$$ amount of the 1st 3 months premium to the agent. Then your IMO keeps months 4-12 FYC and then keeps the renewals for themself. They also are the ones to absorb any charge backs.

I believe I saw Jignesh posting this on FB recently.

And, many advertise that they pay 300% commission (3xmonthly premium) I have seen agents with some experience fall for that come-on..

 

[tribetime32]

Then your IMO keeps months 4-12 FYC and then keeps the renewals for themself. They also are the ones to absorb any charge backs.

Bingo! They own the book of business. How can this be good for the agent in any circumstance?

 

[Newby]

Bingo! They own the book of business. How can this be good for the agent in any circumstance?

It's good because it prevents them from becoming those greedy, evil rich people that the politicians tell us to hate.

 

[HoosierLife]

Many agency builders are petrified of chargeback rollups.

I don't know if they're using this just for agency builders or all agents so they don't have to worry about ANY chargebacks, but it is what it is.

Even though you can make more money with high comp and paying for your own leads, there's tons of agents that don't want to take that risk and take reduced comp and free/discounted leads.

Would potential agency builders be any different?

 

[tribetime32]

Many agency builders are petrified of chargeback rollups.

I don't know if they're using this just for agency builders or all agents so they don't have to worry about ANY chargebacks, but it is what it is.

Even though you can make more money with high comp and paying for your own leads, there's tons of agents that don't want to take that risk and take reduced comp and free/discounted leads.

Would potential agency builders be any different?

I mean this is going to attract all the bad agents that will roll up debt AND they are giving up ownership of their business. I can see the appeal to the kind of guy I wouldn't want, but I know some good guys are getting suckered into this too.