Why LOA?

[Ty Lim]

Hi all, I have read some discussions on loa here but I would still like to have a deeper understanding of this issue.

Why do some agencies go with the LOA route with their agents?
What are the advantages or benefits to the agencies besides having the control of the agent's commission?

Are there any benefits for the agent to be on an LOA contract?

Who owns book of business in agent is an LOA?

I am launching an MLM style (not anything like WFG or Primerica culture) where I like to pay my agents commission on more than one level (override and generation override) if they decide to build a team and was looking into all options to do right for my member agents.

Tks, Ty

 

[GreenSky]

The upline owns the book because the commissions are assigned there. It's ALWAYS a crappy deal for the agent but great for the agency.

Rick

 

[Norwayguy]

The upline owns the book because the commissions are assigned there. It's ALWAYS a crappy deal for the agent but great for the agency.

Rick

Really not more than the above to say on LOA contracts.