Agency owner is a bully

[WinoBlues]

What brought this recent explosion is that my son was questioning why six policies he's sold over the last half year got recoded where credit goes to another agent.

How does that even happen.

 

[RobertAAA]

I don't know. 1 or maybe even two but 6 is a pattern.

He does get leads for free.....well if you don't count the s*%t he takes. Honestly, this could be good leads or not so good, I don't know. I searched insurance leads only to find that everyone's an expert and their leads are the best. Looked at Youtube for leads and forget it.

If he crates his own independent company, I assume he can sell policies using a limited choice of carriers? Does he have to apply to carriers to sell their products?

Or, could he join another agency and sell whatever carriers they use?

Thanks again folks.

 

[vic120]

I don't know. 1 or maybe even two but 6 is a pattern.

He does get leads for free.....well if you don't count the s*%t he takes. Honestly, this could be good leads or not so good, I don't know. I searched insurance leads only to find that everyone's an expert and their leads are the best. Looked at Youtube for leads and forget it.

If he crates his own independent company, I assume he can sell policies using a limited choice of carriers? Does he have to apply to carriers to sell their products?

Or, could he join another agency and sell whatever carriers they use?

Thanks again folks.

This place sounds criminal I would tell him to move quickly

 

[scagnt83]

Show of hands.

How many of you have a job? Work for xyz agency? Have a boss?

I have not for decades

Formed my own DBA in 2013 and never looked back.

After being a captive employee for NYL, I thought I needed "support" of a local GA to have an office and a "trusted brand". Wasted 5 years with them. But it was nothing like what the OP describes... I would have been gone a long time ago in that situation.

 

[WinoBlues]

Or, could he join another agency and sell whatever carriers they use?

Or a couple at the same time. He is a free man.

I would take Todd, any one else's, offer to talk.

 

[scagnt83]

Actually, I think that he should want to be fired. That way, they can't hold him to any non-sensical contract that they may have and certainly can't hold him to a non-compete. As a 1099'er, he shouldn't be told what he has to do and not.

If you guys would like to talk about the situation, feel free to give me a call.

This is actually excellent advice. Many states have had court cases that have struck down non-competes if an employee is fired.

I also think it would be a great idea to call Todd. Get the kid on the phone with a real agent who is ethical and committed to helping agents succeed in THEIR business. Ive told many on this forum to contact him.

 

[scagnt83]

He does get leads for free.....well if you don't count the s*%t he takes. Honestly, this could be good leads or not so good, I don't know. I searched insurance leads only to find that everyone's an expert and their leads are the best. Looked at Youtube for leads and forget it.

If he is relying on those leads to eat... then there is the hook keeping him there. Ask him if thats the case.

He can buy leads. Todd can direct him with that. The forum can help too.

If he is selling FE, a normal contract will pay him 100%-120% of first year premium. Right now he is getting 70% from what you stated. He can take the 40% pay raise and buy leads with 20% of it and keep the other 20%.

 

[WinoBlues]

Formed my own DBA in 2013 and never looked back.

After being a captive employee for NYL, I thought I needed "support" of a local GA to have an office and a "trusted brand". Wasted 5 years with them. But it was nothing like what the OP describes... I would have been gone a long time ago in that situation.

Same and same

 

[scagnt83]

If he crates his own independent company, I assume he can sell policies using a limited choice of carriers? Does he have to apply to carriers to sell their products?

Or, could he join another agency and sell whatever carriers they use?

He can sell policies using almost any and every carrier. He will likely have a 6 month wait to contract with the carrier/s he is currently contracted with.

Here is the breakdown:
Agency- Very general term. Usually a local shop who employs/contracts local people. Often provides overhead and some type of support. Agents usually represent themselves under that "business name". Limited to the carriers the agency provides. Some will let you contract outside the agency if you need a carrier they dont have... just depends. Often choice of carriers to sell can be limited.

General Agency- Similar to an agency, but also contracts agents who operate under their own business name. So they have agents representing their brand, and some who simply just use them to contract with a certain carrier or carriers. If you are not representing their brand, you are free to contract at will with other GAs or Agencies or IMOs for other carriers. Usually, a GA will contract any agent if they just want a contract to sell under their own business name. Usually a GA will have a larger selection of carriers vs. an local agency.

IMO (Insurance Marketing Organization)- They will contract any agent who needs a contract with a carrier they offer. Usually offer a large selection of carriers. Free to use as many IMOs as you want. They are simply a middleman to contract with the insurer. Sometimes you get some backroom and case support from them... some even offer leads... but read the fine print on that.

Most GAs and Agencies actually run their contract through an IMO. Most carriers require a very large amount of production (millions) to have a direct contract with the carrier. So you have middlemen who "aggregate" production from many different agents in order to provide the opportunity to contract with that carrier.

The next level is a FMO (field marketing organization)- They produce an even larger amount of business than an IMO... often contracting IMOs and aggregating their business to contract direct with carriers. Combining production also gives more leverage or higher comp levels (theoretically).

Then some carriers do allow agents to contract directly with them. Its a small amount, but some do. For non FE carriers: Penn Mutual, Mass Mutual, American National, Midland National are a few off the top of my head.

As an independent agent out on his own, there are virtually zero limitations on what carriers he can sell... or has to sell... or how many IMOs or GAs he works with.

(agents would work with different IMOs or GAs because some specialize in certain product lines or niches... or some just have better comp levels for certain carriers)

 

[pfg1]

Wow. Sounds like the agency owner is quite a case. I'm with SC, I'd probably tell him to kiss my a$$.

He should look to be fired (even though its not technically possible as a 1099). That is absolutely no way to live/work. If he's doing ok there, he should do fine on his own and make more money. Alot of great info given to you. The hard part with folks with little life experience, he feels he "needs" the job. As mentioned, he's already working for himself, he just doesn't realize it. Have him look up how the IRS classifies a 1099 contractor. Technically, the agency owner can't tell him what to do EVER. Can't tell him when to come and go, can't set production requirements, etc. He's totally free to do what he wants, when he wants. Most folks that "employ" people as 1099, are just trying to skirt the system on paying taxes and benefits, all the while treating them like an employee.

I wish him good luck, hopefully he will make the right decision. He's got the work ethic, once he gets with the right folks he's gonna be so much happier and more successful.