9 Good Reasons To Operate A Insurance Sales Call Center:

[Paradigm]

No employees, will use an executive office to get beyond 50,000 AV a week. Can pay per hour to exec suite for any admin time I need tax deductible. eliminates payroll and workers comp.

Also can write off 45k or 25% of income as tax ded contribution to indiv. 401k

Also 25% of expense written off

so 25% is good tax # assuming McCain gets in 30% if obama does. Go McCain

 

[senior-advisor-indiana]

Sti said

"I wish you could learn how to work the quote function on this web site...... "

I agree

 

[Paradigm]

I wish you could learn how to work the quote function on this web site......

I see what you mean

 

[myinsurebiz]

Rick -

I've operated many companies utilizing 1099's - but never once where "they came into an office" - so thanks for the heads up.

The Call Center concept I was proposing was very borderline between employee and 1099. So - I called a friend that operates a telemarketing call center and he told me how to do it. I ran this by my CPA this morning and all is good.

My friend charges a weekly "booth lease fee" for the space for his 1099 independent contractors to use to conduct business. The rate is a set amount each week with certain rebates at various volume thresholds.

Basically the Call Center will be open from 9am to 7pm. The rate for a booth will be $149 a week. Should the "lessee" produce $2,500 in Group AP a week - they get a $50 rebate. $5,000 in Group AP a week = $100 rebate. $10,000+ in Group AP they get a $149 rebate. Weekly Group AP will be based on a 4 week rolling average. Group AP = business placed with our approved carriers. The agent is free to sell for whomever.

The booth lease is week to week and either party can terminate the lease with written notice at any time. Management reserves the right to enter or not to enter into lease agreements.

No set schedules. The agent can come and go as they please when the building is open. However - if they order call back leads or live transfer leads from our vendor ( they are free to order leads from whomever ) - and they aren't there to receive them - it's their loss.

For new agents - the "lease fee" will be waived for up to 8 weeks depending on agreement negotiated. Every $100,000 in Group AP = one free week - ( can take 4 vacations a year with no charge ).

This will take care of the employee -vs- 1099 problem.

To address the "person falling out of the chair" - thus the reasoning for having General Liability insurance. ( note to self - get P&C license )

Thanks for the comments.

Tom

 

[Crabcake Johnny]

Basically that is a beauty shop model; beauticians rent space and are indeed contractors - however, they are also responsible for 100% of their own costs including their own equipment.

Tom, what seems good on paper I don't think plays out. You are going to find licensed agents to pay a fee to show up at a call center?

Unlikely but I admire the effort.

 

[TXINSURANCE]

Who's equipment are they using? Who's electric and Internet? Who's phone's?

No offense I think you need a second and third opinion.

The scenario you described above will never pass the test as an independent contractor. I am not an attorney or CPA, however I have done this long enough to know there is no legal way to have someone come in under your roof and pay them 1099.

I respectfully disagree with your assessment.

 

[myinsurebiz]

" The scenario you described above will never pass the test as an independent contractor. I am not an attorney or CPA, however I have done this long enough to know there is no legal way to have someone come in under your roof and pay them 1099. "

The key here is " I " don't pay anyone anything - the Insurance Carriers do. They don't receive a 1099 from me or the Call Center Operator - but from their respective carriers. This, from what my CPA says - is the difference. The agent isn't receiving compensation from the Call Center Operator.

Using this method - we are basically just providing "space" with amenities. I actually like the idea more now . . .

Tom

 

[Crabcake Johnny]

There are some working models of this but with differences.

For example, Remax agents are contractors however they have an office - they rent space from Remax and also have to pay for extras.

However, Remax plus the beautician shop model (and I just called my CPA to check on this) are based on the fact that they bring in and manage their own clients. There is also the "training test" meaning those businesses do not train their contractors. They come in and work.

This would not be the case with the call center idea where leads, ie; clients will be provided by the call center. When I ran this idea past my CPA just now he said there's not even any gray area - it's an employee situation.

I replied with "but this guy apparently checked with his CPA who said it was fine." His reply? "tell him to fire his CPA since he doesn't know what he's talking about."

 

[STIBROKER]

No...really dude....if you are going to quote people you need to do it right or I will start deleting your posts.....

" The scenario you described above will never pass the test as an independent contractor. I am not an attorney or CPA, however I have done this long enough to know there is no legal way to have someone come in under your roof and pay them 1099. "

The key here is " I " don't pay anyone anything - the Insurance Carriers do. They don't receive a 1099 from me or the Call Center Operator - but from their respective carriers. This, from what my CPA says - is the difference. The agent isn't receiving compensation from the Call Center Operator.

Using this method - we are basically just providing "space" with amenities. I actually like the idea more now . . .

Tom

 

[Crabcake Johnny]

....and by the way - not all CPAs are created equal. Agent friend of mine over a year ago hits a local CPA office - get advised that he does not have to pay quarterly estimated taxes.

After a little arguing a three-way called him to IRS main line and had a nice 10 minute conversation with an agent going over how he must file quarterly.

When he presented this evidence to this CPA he just got rude and said "if you don't want to use my services then don't."

There are baboons in every field.