Producers Agreement Vs. Sub Producer Agreement

[love2serve]

What is the difference in these two terms. Thanks for your help.

 

[STIBROKER]

Producers Agreement
Direct contract with insurance company....

Sub Producer Agreement
under the person that has the contract with insurance company.........and a good contract to lose commissions......

 

[love2serve]

Producers Agreement
Direct contract with insurance company....

Sub Producer Agreement
under the person that has the contract with insurance company.........and a good contract to lose commissions......

Explain the whole losing commissions deal?

 

[Air Jer]

Simple, you wind up losing commissions because you split them. As a sub-producer, you will not get the entire commission.

 

[Guest]

sub-producer doesnt have the overhead an agent does, therefore, a sub will make less commission