Working for an Independent Agent, Good Idea?

[mjnoles1]

I know most people on this forum state, the best thing is to be an independent agent instead of working for a captive company. It would be very hard to be an independent agent for someone that just got his/her license and really have no idea of the business.

But, what better way to learn to be an independent agent then work for one with 30 years of experience? I contacted a phone that I thought to be a Colonial Life office per yellowpages.com. To my surprise, I received a phone call back, stating this is not Colonial Life but I do sell all types of Health/Life, and annuity policies and I would be interested in hiring someone.

I went to his office and everything went great. It seems like he really wants to mentor me to take over the company as he his 58 and stated that he would want to get out in maybe 10-12 years. It didn't give me the BS that your going to be a millionaire in your first two years. He stated true facts, such as, this is a VERY difficult business with long hours, when he first started he used to work late nights weekends and the such (I'm not scared to do that). You could do very well in 3-4 years he stated. He said that he would like me to join all the local business type of clubs around the area to network. And to start with, study all the materials on the products he sells. He then wants me to sit in meetings with him and go with him to see clients to see how its done. Sure he doesn't have a "training program" per se like the corporate companies but his training is more of a mentor watch how I do it training. And when I start to do selling and he comes with me unlike Colonial Life it would be 50-50 on commission. He stated that it would be 80-20 with 80% of commission going to me.

In his office, its only him and a secretary. I would be the third person.

I believe I got an excellent opportunity but wanted to get your guys opinions. I got an offer from Family Heritage, Colonial Life the last two days and the independent agent.

Thoughts?

 

[Newby]

Working under a successful independent in a small office is the ideal situation to be in.
It does raise an eyebrow that he is ready to take a guy under his wing based on a mis- dialed number.

 

[VaDwayne]

I know most people on this forum state, the best thing is to be an independent agent instead of working for a captive company. It would be very hard to be an independent agent for someone that just got his/her license and really have no idea of the business.

But, what better way to learn to be an independent agent then work for one with 30 years of experience? I contacted a phone that I thought to be a Colonial Life office per yellowpages.com. To my surprise, I received a phone call back, stating this is not Colonial Life but I do sell all types of Health/Life, and annuity policies and I would be interested in hiring someone.

I went to his office and everything went great. It seems like he really wants to mentor me to take over the company as he his 58 and stated that he would want to get out in maybe 10-12 years. It didn't give me the BS that your going to be a millionaire in your first two years. He stated true facts, such as, this is a VERY difficult business with long hours, when he first started he used to work late nights weekends and the such (I'm not scared to do that). You could do very well in 3-4 years he stated. He said that he would like me to join all the local business type of clubs around the area to network. And to start with, study all the materials on the products he sells. He then wants me to sit in meetings with him and go with him to see clients to see how its done. Sure he doesn't have a "training program" per se like the corporate companies but his training is more of a mentor watch how I do it training. And when I start to do selling and he comes with me unlike Colonial Life it would be 50-50 on commission. He stated that it would be 80-20 with 80% of commission going to me.

In his office, its only him and a secretary. I would be the third person.

I believe I got an excellent opportunity but wanted to get your guys opinions. I got an offer from Family Heritage, Colonial Life the last two days and the independent agent.

Thoughts?

Just my opinion but voluntary benefits are a very tough gig with long hours and little pay. I sarted with Colonial, I hit their 90 day bonus in a month, but it was the most running I have ever done for the money I received. Total waste of time unless you work with many brokers.

 

[HarryRenard]

He stated that it would be 80-20 with 80% of commission going to me.

80/20 sounds great for a mentor split BUT 80% of what.
He will be your GA too.

 

[ksigmtsu]

80/20 sounds great for a mentor split BUT 80% of what.
He will be your GA too.

Sounds like he might be having him contract directly then working a split instead of a GA to Agent route. Hell its a better deal either way than what I started with, I was working 2 weeks worth of splits set up as a 55% with my direct upline splitting the 55% with me and I was buying the leads.

 

[mjnoles1]

80/20 sounds great for a mentor split BUT 80% of what.
He will be your GA too.

Sorry for the stupidity as I am new to this career. But, what is a "GA" ? And what did you mean by it in the context you used GA in?

Also what did you mean by "BUT 80% of what." I would think 80% on whatever sale I make with him? No?

 

[HarryRenard]

GA=general agent, Which would mean who you contract through or contract directly with the companys.

Meaning is he getting a big over ride and a split, or just a split. Not a huge deal just something to be aware of.

 

[ksigmtsu]

Sorry for the stupidity as I am new to this career. But, what is a "GA" ? And what did you mean by it in the context you used GA in?

Also what did you mean by "BUT 80% of what." I would think 80% on whatever sale I make with him? No?

Its just that when you contract UNDER a GA, they already receive a commission. So if he is contracting you as your GA, then working a split as well, hes double dipping and not informing you. It sounds like you have a sweet deal here, one way or other, and I would imagine that he is contracting you direct and splitting commissions rather than contracting you under him.

You'll know really quick without asking if when you start doing appointment contracts he's listed on the contract as your General Agent, hes getting an override in addition to the 20%. Standard life contracts should be around 100% for term. 90-115% is very common. If your contract is lower than that, and hes splitting what you get, and he's your GA, hes screwing you.

 

[mjnoles1]

Its just that when you contract UNDER a GA, they already receive a commission. So if he is contracting you as your GA, then working a split as well, hes double dipping and not informing you. It sounds like you have a sweet deal here, one way or other, and I would imagine that he is contracting you direct and splitting commissions rather than contracting you under him.

You'll know really quick without asking if when you start doing appointment contracts he's listed on the contract as your General Agent, hes getting an override in addition to the 20%. Standard life contracts should be around 100% for term. 90-115% is very common. If your contract is lower than that, and hes splitting what you get, and he's your GA, hes screwing you.

I believe I see what your saying.....I do not believe I am contracting under him, If I do indeed understand what your saying. As he stated to me, that the first thing I would need to do is register with the companies that he sells. So, that would mean I am not contracting under him and instead I am contracting direct and he is not my GA, correct? As, if I was contracting under him, I would not be registering with those companies, but instead just be selling those companies for him?

 

[HarryRenard]

Honestly I would be shocked if he doesnt appoint you under him. If not for the overrides why give up the production too.

Again that is just a guess, but its a been in the business since the Y2K guess.