5 Year Non Compete Agreement?

[Rearden]

I think it's just crazy, why would they want to keep a person from making a living, and for 5 yrs? It's a one-sided contract no doubt, gives them ALL the power, they can change commissions, take away any marketing assistance, lose carriers, anything THEY WANT really cause you can't go anywhere else, or make a living, atleast in your profession your trained in.
Suck it up and take it chump, lol!
I'm going through that now with a Non-Solicit in the P & C business, but atleast I can leave them and continue on in my own profession (as they make change after change to our contract, taking $ out of our pocket each time) cause it's doesn't keep me from making a living, just staying away from the clients. No way would I sign a NC, even for a year.
And.....atleast be upfront about it if you have one. I know with David we were 2/3 mths into it before the N-C came up. We talked about the MA marketing assistance (different than it really is) but didn't bring up the NC at all, till I talked to Matt, after I had contracted with both MA and FE carriers and was ready to sell. Now I get to, and am currently dealing with releases and the big mess that goes along with that, even though I had not written one piece of business with anyone.

Hi Cador,

While I can't recall exactly our correspondence or sequence of communications, I take full ownership if I did not fully explain the contractual commitment required to get access to our Medicare Advantage lead subsidy program.

Generally, I or Matt do a 1-on-1 meeting with an agent before onboarding them with carrier contracting, and have the conversation in detail then. I don't know why or how I did not explain the process to you, and fully apologize for my error.

I hate that I wasted your time in contracting as I 100% respect your reasons why you would not enter into relationships like what we propose.

If I can help with any of those releases that are still caught up, please reach out to me ASAP and I promise I'll do what I can to assist in getting those completed.

Additionally, after your post, I audited my onboarding process to make it clear that:

1. The Medicare lead subsidy is optional, and agents who would rather not do it can still work with us, getting access to the lead program and sales training, and,
2. The Medicare lead subsidy program requires the agent to contractually commit to us their Medicare business, making sure to explain our reasoning (we're investing lots of money into the agent's leads and taking a loss, sometimes for multiple years before breaking even.)

For what it's worth, I am genuinely sorry for the experience you had working with me, and apologize for the inadvertent lack of communication regarding the Medicare lead subsidy commitment.

 

[cador]

Hi Cador,

While I can't recall exactly our correspondence or sequence of communications, I take full ownership if I did not fully explain the contractual commitment required to get access to our Medicare Advantage lead subsidy program.

Generally, I or Matt do a 1-on-1 meeting with an agent before onboarding them with carrier contracting, and have the conversation in detail then. I don't know why or how I did not explain the process to you, and fully apologize for my error.

I hate that I wasted your time in contracting as I 100% respect your reasons why you would not enter into relationships like what we propose.

If I can help with any of those releases that are still caught up, please reach out to me ASAP and I promise I'll do what I can to assist in getting those completed.

Additionally, after your post, I audited my onboarding process to make it clear that:

1. The Medicare lead subsidy is optional, and agents who would rather not do it can still work with us, getting access to the lead program and sales training, and,
2. The Medicare lead subsidy program requires the agent to contractually commit to us their Medicare business, making sure to explain our reasoning (we're investing lots of money into the agent's leads and taking a loss, sometimes for multiple years before breaking even.)

For what it's worth, I am genuinely sorry for the experience you had working with me, and apologize for the inadvertent lack of communication regarding the Medicare lead subsidy commitment.

I really appreciate your honest, sincere answer, as well as your apology, means alot, no hard feelings here.
On the offer to help on the release, I really appreciate that as well but I do have the releases from you/360 that I need. The FE releases went decently smooth once I rec'd them, matter of fact I believe only one or two carriers required one as I didn't write any business with any. The MA releases are another story, took me a good while to get (over a mth), and a good while to get new contracts submitted (almost as long), now it's taken a good while for the carriers to approve. I think I have 3 out of 6, waiting on the other 3 including UHC which is the the main one I need here in Houston.
But I'm getting there.

 

[Rearden]

I really appreciate your honest, sincere answer, as well as your apology, means alot, no hard feelings here.
On the offer to help on the release, I really appreciate that as well but I do have the releases from you/360 that I need. The FE releases went decently smooth once I rec'd them, matter of fact I believe only one or two carriers required one as I didn't write any business with any. The MA releases are another story, took me a good while to get (over a mth), and a good while to get new contracts submitted (almost as long), now it's taken a good while for the carriers to approve. I think I have 3 out of 6, waiting on the other 3 including UHC which is the the main one I need here in Houston.
But I'm getting there.

Sure thing, Candor. Please reach out if I can help with anything.

 

[Fire]

David that's not true . 360 is basically giving up part of their first yr overrides to subsidize leads. 360 also is getting big co-op marketing $'s. Their making a fortune years 2 on with big overrides.Your guys are writing mostly duals and losing 20% plus in disenrollments in the first 12 months .Anyone who signs a 5 yr no compete clause is crazy.

 

[rousemark]

David that's not true . 360 is basically giving up part of their first yr overrides to subsidize leads. 360 also is getting big co-op marketing $'s. Their making a fortune years 2 on with big overrides.Your guys are writing mostly duals and losing 20% plus in disenrollments in the first 12 months .Anyone who signs a 5 yr no compete clause is crazy.

How do you know what Dave's "guys" are writing?

 

[Fire]

I know several guys on " the squad " as they call it . Anyone who writes yr round is writing " duals" or Lis . They just had a zoom meeting on " rapid disenrollments " . The dual mkt is dog eat dog and if you stop writing your book will be toast in 3 yrs. All those dudes being sold a dream of " passive income " are going to be disappointed . To get that you must be in the middle class and up mkt.

 

[Rearden]

David that's not true . 360 is basically giving up part of their first yr overrides to subsidize leads. 360 also is getting big co-op marketing $'s. Their making a fortune years 2 on with big overrides.Your guys are writing mostly duals and losing 20% plus in disenrollments in the first 12 months .Anyone who signs a 5 yr no compete clause is crazy.

Not quite.

Here's how it looks:

IMO Override (IMO - MA agent street level contract), minus the following:
-Administrative Costs (Contracting team salaries + lead management admin salaries)
-Trainer Costs
-Recruiting Costs
-Lead Acquisition/Wholesale Costs (acquisition cost will vary by region - mail has been rough lately so likely a loss)

And that's *before* adding in the cost of covering leads for each policy sale (subtract another $75/MA sale).

As far as my folks doing MA with me (several who are on track to do 400 to 800 MAs this year), I have heard zero concerns about experiencing persistency issues.

However - at least with my guys - there is a big emphasis on "tending to your flock" post-sale. Getting out of one-call close mindset typical of most final expense agents is critical for success in Medicare Advantage.

 

[somarco]

Getting out of one-call close mindset typical of most final expense agents is critical for success in Medicare Advantage.

OCC does not have a successful track record with Medicare . . . unless you treat it as a transactional sale . . . which many agents do. Even then, the close ratio may look decent but the slam-bam-thankyoumam approach is not good for persistency and referrals. Eventually those folks come out of the ether and realize what they have bears little resemblance to what they were sold.

 

[Up In Smoke]

Excuse my language...5 years is a long a** time...

 

[Allen Trent]

Excuse my language...5 years is a long a** time...

Are you playing language games again?