Angel Investor Question

[Crabcake Johnny]

Any odds on getting the name of your IMO

 

[insuranceexec]

This is your 3rd post and second pitch on this board - which is fine however can we all know a little bit more about you and your agency?

Why don't we start with your name and agency's name and work from there

my company name is Momentum Advisors Insurance Group. I got started in the insurance business about 10 years ago, and I started with a bad captive company. I quickly climbed to the top of that company and thought I was invincible... Sound Familiar............

So I emancipated myself about 4 years ago and decided to give it a go on my own. I did farily well and was a top producer for Allianz and Lincoln Financial. I then got to meet some very intresting people who own an IMO in Illinois, and to say the least I asked them If I could borrow some of their ideas and their business model. They agreed and I found a way to operate a marketing firm on next to nothing, thus being able to give more comps to my agents. I do not advertise I rely on mouth to mouth advertising and just like in my private practice I almost solely rely on referrals.

I just found this forum a couple of days ago so please forgive me If I am forward. I have found the best way to run a business is to be very straight and to not beat around the bush.


I will go ahead and aswer the question now as this seems to be the question that everybody asks. "How is it that you can get such good comps,and I can't." The answer is that about 4 years ago in knowing alot of top producers, and being one myself, decided that I was tired of giving my hard earned commission dollar to somebody who did nothing but sit behind a desk and bothered me all the time about the next "firesale" they were having.

So I contacted alot of the companies direct and asked them how to get the best contract with their respective companies. The answer was almost the same with every company. Bring me a 100 million in annuity production and 10 million in life production. It did not matter the company and it did not matter how many agents were involved to make up that number. The companies were wanting to see that I had access to people and that those people produced. The arrangement I made with the 20 agents I started with was very simple I will operate on 25bps on all annuity business and 5% on all life. That is the same offer I will make to any and all agents. The reason I only have 150 or so agents is that I am currently in my 2nd year of law school and obvioulsy that requires alot of my time. The second thing is that I have only been actively recruiting since the first part of this year.

Do not be alarmed if you contact your personal marketing firm and they try to tell you that what I am saying is impossible. Remember they are sales people and they make a commission off every piece of business that you write. So with that being said, your marketing guy or gal at the very least have an active intrest in trying to keep your business. I hope this answers your question, and I hope that you feel I was thorough. I would be happy to answer any and all of your question and would be more that happy to help any new agent trying to get into this business. Happy Hunting and good luck.
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In general, I haven't met to many angels that work with limited profit potentials.

Not near enough information here to even begin.... Only you will know what is right, but don't worry, if it's wrong, you'll know that to.

- Why do you need an angel investor? This sounds like wanting a large office, receptionists, producers, etc. That's okay if that's the way you are going.
- What are you trying to accomplish with an angel investor that you can't accomplish on your own? I'm assuming this is not a life and health agency, but a multi-line P&C agency?

The hard part with angels is they are motivated in strange ways, but all of them are looking for a fairly significant upside. They always want a bigger slice than what you would pay if you got a small business loan, which is what I would recommend checking out first.

The good news is, even talking with an angel makes you have a business plan, which is crucial to long term success.

You are absolutely correct.
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Any odds on getting the name of your IMO

Momentum Advisors Insurance Group, and I am located in Jonesboro, Arkansas. thanks for the question....

 

[Mark]

my company name is Momentum Advisors Insurance Group. I got started in the insurance business about 10 years ago, and I started with a bad captive company. I quickly climbed to the top of that company and thought I was invincible... Sound Familiar............

So I emancipated myself about 4 years ago and decided to give it a go on my own. I did farily well and was a top producer for Allianz and Lincoln Financial. I then got to meet some very intresting people who own an IMO in Illinois, and to say the least I asked them If I could borrow some of their ideas and their business model. They agreed and I found a way to operate a marketing firm on next to nothing, thus being able to give more comps to my agents. I do not advertise I rely on mouth to mouth advertising and just like in my private practice I almost solely rely on referrals.

I just found this forum a couple of days ago so please forgive me If I am forward. I have found the best way to run a business is to be very straight and to not beat around the bush.


I will go ahead and aswer the question now as this seems to be the question that everybody asks. "How is it that you can get such good comps,and I can't." The answer is that about 4 years ago in knowing alot of top producers, and being one myself, decided that I was tired of giving my hard earned commission dollar to somebody who did nothing but sit behind a desk and bothered me all the time about the next "firesale" they were having.

So I contacted alot of the companies direct and asked them how to get the best contract with their respective companies. The answer was almost the same with every company. Bring me a 100 million in annuity production and 10 million in life production. It did not matter the company and it did not matter how many agents were involved to make up that number. The companies were wanting to see that I had access to people and that those people produced. The arrangement I made with the 20 agents I started with was very simple I will operate on 25bps on all annuity business and 5% on all life. That is the same offer I will make to any and all agents. The reason I only have 150 or so agents is that I am currently in my 2nd year of law school and obvioulsy that requires alot of my time. The second thing is that I have only been actively recruiting since the first part of this year.

Do not be alarmed if you contact your personal marketing firm and they try to tell you that what I am saying is impossible. Remember they are sales people and they make a commission off every piece of business that you write. So with that being said, your marketing guy or gal at the very least have an active intrest in trying to keep your business. I hope this answers your question, and I hope that you feel I was thorough. I would be happy to answer any and all of your question and would be more that happy to help any new agent trying to get into this business. Happy Hunting and good luck.


Momentum Advisors Insurance Group, and I am located in Jonesboro, Arkansas. thanks for the question....

Did you spell check this before you posted it? You said you are in law school?

I read your other post. You said that no life company offers advancing until you was confronted on this issue. Next you said that you would cut an agents commissions if they asked for advancing.

I don't think you are going to recruit from this forum. Also you need to not spam on your first couple of post and try to bring something postive to this forum.

 

[insuranceexec]

Did you spell check this before you posted it? You said you are in law school?

I read your other post. You said that no life company offers advancing until you was confronted on this issue. Next you said that you would cut an agents commissions if they asked for advancing.

I don't think you are going to recruit from this forum. Also you need to not spam on your first couple of post and try to bring something postive to this forum.

Obviously you used spell check, but did you use grammar check. And you said that you have been in business how long? and that you are how smart?

You used a past tense verb when you should have used a present tense. You should have used were!!!!!!

Just remember when you think that you are too smart to learn, you shut your mind off from learning, and nobody wants that.


Even though you have not been nice to me. I do have to compliment you on your website. I think it is very professional and well done. Keep up the good work, and thank you for pointing out my flaws. Happy Hunting!!

 

[Mark]

Don't take it personal insuranceexec . Do you know how many spammers we get on here. How many IMO's show up on this forum and don't read the rules and start spamming on their first post? You will find that I'm the nice one on the forum. You may turn out to be helpful on the forum.

If you show up and start sharing ideas, or do anything other then advertising your imo, you will get more respect here. I just didn't agree with how you cut commissions on agents that want advancing. I don't know you well, and I bet you are a good person. Just stop spamming and try to provide some marketing tips or advise.

 

[insuranceexec]

Don't take it personal insuranceexec . Do you know how many spammers we get on here. How many IMO's show up on this forum and don't read the rules and start spamming on their first post? You will find that I'm the nice one on the forum. You may turn out to be helpful on the forum.

If you show up and start sharing ideas, or do anything other then advertising your imo, you will get more respect here. I just didn't agree with how you cut commissions on agents that want advancing. I don't know you well, and I bet you are a good person. Just stop spamming and try to provide some marketing tips or advise.

I thank you for your kind words of encouragement, and I will provide the best advice that I can possibly give. Out of my first ten posts 6 have been in response to you......LOL.

When it comes to business I do not take things personally, but I thank you for being concerned about my emotional well-being. It just goes to show me that you are truly a class individual.

Now on to important matters. You stated that I cut commissions for agents that want advancement.
If every agent is being paid 105% with ABC company and I pay that agent 120% for the same business, what have I done wrong?

If I tell that agent I can pay them 140% if they choose not to go on advancement, and they choose advancement; again what have I done wrong?

Lastly what is to be said about the marketing company that is still only paying 105%?

In closing I will say that it is not cutting commission if you are still paying more than MOST everybody else. Where I feel as though I am different is that I am willing to operate on MUCH less than most if not all marketing companies. I thank you for your comments, and look forward to your response...........Happy Hunting


I do not know if it matters but I am a Georgia Tech Alum......LOL I did not figure it would...

 

[Mark]

Almost every company does not offer advances on the life side. Maybe they do on the health side and I apologize for not knowing that answer. The problem however in alot of cases you take a reduced commission for taking an advancement. Again and to be clear I am talking about the Life side only, sorry for any confusion.

The problem I have with you is these two statements that you made.

What I have found to be true is that more agents, especially when getting started, will choose to take the company that offers an advancement. And in the long run they cost themselves alot of commissions. I as president of my IMO will not offer much higher than street to my agents that are receiving advances. The reason I will not is that I have to sign off on any agent in my IMO as being financially responsible for any debit balance not satisfied by the producer. I hope this helps clear things up.....

This is what I'm talking about. I just have never heard of any IMO cutting the commissions not matter what they are offering, to an agent that wants advancing. Also I don't know of any IMO that does not offer advancing.

My other problem with you is that on your 1st post you were spamming. On your first 4 post you were spamming. You would have kept spamming until someone said something to you.

 

[insuranceexec]

The problem I have with you is these two statements that you made.



This is what I'm talking about. I just have never heard of any IMO cutting the commissions not matter what they are offering, to an agent that wants advancing. Also I don't know of any IMO that does not offer advancing.

My other problem with you is that on your 1st post you were spamming. On your first 4 post you were spamming. You would have kept spamming until someone said something to you.

I do offer advancing.

I promise not to spam anymore today, and to only provide accurate and authoritative information dealing only with the subject matter at hand. Have a good nite and I look forward to speaking with you in the future. God Bless and Happy Hunting......See I do take advice and know when to be quiet...........LOL