MN Couri IA Am I Getting a Fair Deal? Need Quick Advice

[IrishVirus]

I am currently working for an independent Agent who uses couri.

I was doing this for experience, but I need to know if the deal I am getting is common to Couri. Not asking for specific numbers but want to make sure I am not missing information, because she wants me to sign a contract.

I only get commission and I thought it was the full commission, but they are paying me 6% on new business and 3% on renewals. I have to pay for all my own leads, and any other finances to acquire leads.
Is this fair or near the normal payout for couri, or am I getting a lot skimmed off the top. Because I also pay a monthly fee to use the office.

With the cost of everything and the commission rate, I am thinking I am better off by myself with a different group MIAA or Smart Choice. I pay for all my supplies and equipment as well.

She also wants me to sign a do-not-compete that if she or I decide to not work together I cant sell for 2 years within a couple hundred miles of the location.

Please let me know if this deal is fair or what others think. She wants to review and sign the contracts in the next few days.

 

[rolox1]

My guess is that it's a bad deal. I'm not from your area (I'm in NY). See what else is out there....

 

[InsMN68]

What state are you in? WI or MN? I'd be leery of the split and 2yr non-compete. Sometimes unenforceable for pro work states. Read the fine print. Seek legal advice.
A few other options are to look at other aggregators besides the ones you mentioned. Insurance Producers Network, Atlas Insurance Brokers, SIA of The great lakes. All strong pro agent contracts. Let me know if you need a referral

 

[AZDave]

Couri is not the question here. Producer compensation is the question. If the total commission on the policy is 10%, then the agency is making 9. Paying you 6%/3% renewals is basically a 60/30 split. This is not a terrible arrangement. But, the total commissions are usually greater than 10; average 12 - 15. Then your numbers are in favor of the house, especially if your paying some overhead and leads.

Having a non compete is standard business practice.

Read thru the posts here on producer compensation. Go to your agent with your offer. Make a deal or move on.

Good Luck to you.

Dave

 

[IrishVirus]

Yeah I want the experience so had it just been upfront that she was doing it, and not stated I would be making the full commission on the sale (which I am guessing I am not getting.) As for the do not compete I understand the industry standard, but I really came to her to assist her in growing her book, and I would handle my own costs for the education I looked at it. I did want to make money too, but it was for experience.

Now if education comes with extra costs that are unexpected, when I fully supply everything for myself. Honestly 150 more and I could rent a 300 sq ft office with all utilities and internet included. I would have to pay for E&O but if I don't hire an employee till I grow, I could easily grow faster and get paid more. I am not allowed to start a website as she doesn't have one, and no social media use to gain client following. My best friend who I lived with in college, and was best man in his wedding is a professional web designer offered to design and host it for free even.

The use of social media in absence of extra money to invest in leads, could boost extra leads. Since my closing ratio has been around 1 in 4 for the last year and a half. Now I have had a few bad months, but I've beat averages. I am very service focused and have gotten a decent rate of referrals.

I keep trying to crunch the numbers and upfront it would be more, but monthly I estimate I will have greater success. Plus I would be returning to an area that is growing quickly in Minnesota, and I am known more so my natural market is greater.

So still need to decide go forward myself, or ride it out and hope for the best.

 

[IrishVirus]

I contacted atlas No response yet, MIAA, and Smart choice.
Cost wise 250 more a month and I cover renting my own office, utilities and internet, and I can go out alone.

But its a big choice to make especially with all the options and getting full details to choose a Cluster/alliance.

 

[indienoise]

It can vary by state but i cannot imagine a non compete with a 200 mile radius being enforceable.

 

[insurance1822]

What's "couri?"

That doesn't sound like a good deal to me. But that being said I'd hire producers all day every day at that pay scale!

 

[xrac]

It can vary by state but i cannot imagine a non compete with a 200 mile radius being enforceable.

I say go for it. I do not think what you have is a very strong deal.

 

[VolAgent]

It can vary by state but i cannot imagine a non compete with a 200 mile radius being enforceable.

Even if it isn't, it can still cause problems.

I wouldn't sign for that reason alone. A non-solicit, fine, but definitely not a non-compete. If you stop working with this agent, you either have to move or find a new line of business.