Contracts Without Commission Advances nor Leads

[wingman]

If as an agency of a dozen agents you were not interested in leads or advances, what would be realistic contract expectations?

Thanks
Wingman

 

[Rearden]

If as an agency of a dozen agents you were not interested in leads or advances, what would be realistic contract expectations?

Thanks
Wingman

Depends on whether or not you can show proof or production.

The agency with specific niche-experience will usually get a better deal than the agency without it.

 

[Newby]

If as an agency of a dozen agents you were not interested in leads or advances, what would be realistic contract expectations? Thanks Wingman

The leads is no big deal but no advances definitely says you are a cut above. If you are interested in FE contracts you have some good bargaining leverage there.

But can your down line agents cash flow with no advances?

 

[wingman]

I'll move this post to the correct forum, i.e. FE

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The leads is no big deal but no advances definitely says you are a cut above. If you are interested in FE contracts you have some good bargaining leverage there.

But can your down line agents cash flow with no advances?

We have financed and administered commissions for ourselves and other agencies for years in other product areas, so we are able to finance all of our own FE sales for our agents.

 

[rousemark]

I'll move this post to the correct forum, i.e. FE

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We have financed and administered commissions for ourselves and other agencies for years in other product areas, so we are able to finance all of our own FE sales for our agents.

So you elect not to let the companies finance (advance) the agents at no cost to you as the IMO/Agency so you can finance the agents out of your own pocket? You must be charging a pretty decent interest rate on the advances/financing.

 

[wingman]

So you elect not to let the companies finance (advance) the agents at no cost to you as the IMO/Agency so you can finance the agents out of your own pocket? You must be charging a pretty decent interest rate on the advances/financing.

Yes, 1%/mo
Our primary agenda is to maintain our independence of carriers as well as advance on carriers that no one else advances on. That said, it seems like in the FE world all the carriers seem to advance, therefore we would be forfeiting that marketing advantage in this product space.

Wingman

 

[GreenSky]

Yes, 1%/mo
Our primary agenda is to maintain our independence of carriers as well as advance on carriers that no one else advances on. That said, it seems like in the FE world all the carriers seem to advance, therefore we would be forfeiting that marketing advantage in this product space.

Wingman

Not to be confused with making another 12 points on your agents.

Rick

 

[sshafran]

If as an agency of a dozen agents you were not interested in leads or advances, what would be realistic contract expectations?

Thanks
Wingman

assuming you could get 130% FYC, what would you pay the writing agent?

 

[wingman]

depending on the agent, from 100-120%

 

[jdeasy]

Yes, 1%/mo
Our primary agenda is to maintain our independence of carriers as well as advance on carriers that no one else advances on. That said, it seems like in the FE world all the carriers seem to advance, therefore we would be forfeiting that marketing advantage in this product space.

Wingman

Am I wrong to assume that your downline agents assign their commissions to you?