Agency Fees

Aug 8, 2019

  1. Turner1
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    Turner1 New Member

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    I am curious how many agents collect agency fees and if they have found a way to include the payment within the customers policy payment.
    I know with new technology this is probably doable but - since we are new - we don't know if this is an acceptable practice.
     
    Turner1, Aug 8, 2019
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  2. insurlegend
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    insurlegend Expert

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    What is the structure that you use to calculate these fees with?
     
  3. Turner1
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    Turner1 New Member

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    It's a work in progress but it will be based on cost incurred for processing, printing, copying, shopping (we are an independent), and inspecting of property when necessary.

    We recently purchased the agency which has a lot of non-standard business. These customers are known to buy insurance and only pay for one month and then letting the policy collapse. Of course, you all know the frustration and cost that this creates. Thus, the reason for considering an agency fee.
     
    Turner1, Aug 8, 2019
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  4. insurlegend
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    insurlegend Expert

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    Is it a predominately low income area?
     
  5. Turner1
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    Turner1 New Member

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    We border a lower income area and a upper middle income area. A little unique. One of those North side/South side of the tracks thing.
     
    Turner1, Aug 8, 2019
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  6. insurlegend
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    insurlegend Expert

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    I see, after reading the forums on here, many of the independent agents claim that agency fees are a bad idea. I am on the captive side so I cannot charge them regardless but I would think that focusing more effort on marketing and getting referrals from people on the north side could eliminate some of the poor quality clients and over time eliminate the need for an agency fee.
     
  7. Turner1
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    Turner1 New Member

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    Thanks for the input.
     
    Turner1, Aug 8, 2019
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