Right or getting hosed?

[tommyk]

I am currenlty captive but have been approached by an independent agency to come on board with them and help start their senior market.
Now, I do not know what is right compensation for this, as I have not been there before. So any imput would be greatly appreciated.
They are offering 70% of their commision until I make $30k. Then it goes to 60% thru $40K and 50% at $50k. 40% on all other lines (I have a full licesne), 40% or renewals. Only benefit is my E&O. Sounds a little low, but I do not know. Any information.
Thanks

 

[Bob_The_Insurance_Guy]

Take it. It gets you out of being captive, and puts you in a market where you can make some money. I know of an agent, here in Atlanta, who is ALWAYS trying to get a higher contract.

Needless to say, more and more FMO's are refusing to take him back. He's burned too many bridges.

I'm sure you're going to get many responses telling you how low that is. My retort: 70% of something is better than 110% of nothing.

The senior market opens you up to the adult children, and their needs - Long Term Care, Annuities, Life Insurance, Travel Insurance, etc.

Good things come to those who wait. Better things come to those who don't.

 

[senior-advisor-indiana]

IF they are paying that low he should get more than E&O. Are they gonna provide you with leads or train you how to get leads?

 

[senior-advisor-indiana]

I had an uncle offer me 60%. I am glad I didn't take it. That is a frakin rip off and he was gonna cut me off from every county if I left him. I would read the contract carefully. Make sure you can get away from them if you do not like workng there.

 

[Crabcake Johnny]

Yes, many friends of mine over the last 4 years have had top contracts with health insurance companies. I ty to stay in touch with them occasionally to find out how their new jobs are going.

 

[Newby]

I am currenlty captive but have been approached by an independent agency to come on board with them and help start their senior market.
Now, I do not know what is right compensation for this, as I have not been there before. So any imput would be greatly appreciated.
They are offering 70% of their commision until I make $30k. Then it goes to 60% thru $40K and 50% at $50k. 40% on all other lines (I have a full licesne), 40% or renewals. Only benefit is my E&O. Sounds a little low, but I do not know. Any information.
Thanks

Why the decreasing scale?

Is that a reward for top performance?

 

[Crabcake Johnny]

Tommyk - are they offering you leads?

 

[Frank Stastny]

It sounds like you are going to be getting paid by the agency, not the insurance company you write the policy with.

This means that all business you write is under the agency contract with the insurance company. None of it is "your business" as far as the insurance company is concerned.

When you leave the agency, you leave without any clients and renewals. It is like starting from scratch all over again.

Since you have been captive I assume that you are a "seasoned agent" and shouldn't need the training, etc that a brand new agent would need. I would suggest that you say thanks but no thanks and take the plunge and go independent.

I don't see anything in there for you, it seems like it is all about them making money and you doing the work. If something like that had been my only option I would have stayed captive.

I was also captive and was offered "deals" like that. To me it was going from one captive environment to another one where they had even more control over my production. That wasn't being an independent agent as far as I was concerned.

 

[Bob_The_Insurance_Guy]

I misread your post. I thought you were going independent.

It still doesn't change my position. This is an opportunity to get into this arena. Good, bad, or indifferent, you will be getting experience - something no one can take away.

I have yet to have an agency come after an agent, for a non-compete agreement, or for taking clients with them.

For those on this forum that don't want you to do it, let them offer you contracts through them. In other words, putting money where your mouth is.

Your gonna get screwed, just pick your poison.

 

[tommyk]

The decreasing scale is to keep me selling, they say. That way I do not find a comfort zone. I've been in sales for over 20 years, and to date, have never found a comfort zone. I just do my job, to the best of my ability and treat the client in their best interests. The money just seems to follow from there. I learned a while back that: it makes not difference who is right or who is wrong, but: what is the right thing to do.
I can cross sell their current client list. Since I have been captive, I have thought so many times about going independent, but to be honest, I do not know where to go or look for the information. Any direction would be great.