Anyone with Experience with SIAA ?

[redsquash]

Re: Anyone with Experience with SIAA???

Smart Choice, is the 30% of 50,000 comm just a one time deal or are you paying that every year?

Every year - but it would include the renewal commissions as well.

 

[SEEC P&C]

Re: Anyone with Experience with SIAA???

Looks like you are going from a captive to a captive. What are they offering you for the up front money. Why not go direct or get a broker and start a mail campaign with the money you would pay to them. Look at the board and you will see that there are contracts for 125%. I am sure that some of the big producers have a bigger contract than 125%. I am just average and have that. Seems after the amount of time you have been in the business you would have no problems being an independent.

With them you do go direct. They get you the direct appointments and after that they are out of the picture. I guess it depends on what everyone is looking to get out of the deal. I was captive for 10 years and when I left my company I started trying to get appointments on my own. It wasn't impossible but not easy. Especially the major companies. If they were willing to appoint me they were going to have me under a microscope for years. They also didn't want to touch me if I was going to try and get appointed with too many other carriers. After going with SIAA I had appointments with 12 carriers in a year. Half of which are major companies. I told them what carriers I wanted and shortly after I had them. Most carriers didnt even need to speak with me. They appointed me simply because SIAA asked them to. The premium commitments if any were very small and you get profit sharing from dollar 1. To me that made it all worth the start up costs and the 10%. Not to mention the discounts I get on many things because I'm associated with them, management system, comparitive rater, advertising, lead services etc...

30% of the first 50k would be a turn off to me due to that being a major chunk the first few years when I'm trying to get back on my feet. but like I said it all depends on your individual situation and what you are look to get out of the deal.

 

[redsquash]

Re: Anyone with Experience with SIAA???

............ To me that made it all worth the start up costs and the 10%. Not to mention the discounts I get on many things because I'm associated with them, management system, comparitive rater, advertising, lead services etc...

30% of the first 50k would be a turn off to me due to that being a major chunk the first few years when I'm trying to get back on my feet. but like I said it all depends on your individual situation and what you are look to get out of the deal.

I dont understand, how do you justify 10% plus 15K in upfront cost over 30% commission sharing upto 50k. If you do 200k in commission (quite possible by 2nd/3rd year due to renewals) then you're paying only 30% of 50k = 15k to Smartchoice. SIAA will charge 20k, and the difference will keep on widening as more you earn in commission.

I'm not questioning your logic, just trying to understand from my prospect - I'm getting ready to sign contract in next couple of weeks or so. Therefore, just exploring all the options available - so far I like SmartChoice, unless I'm missing anything.

One more thing, where the money comes from for the profit sharing?

 

[SEEC P&C]

I'm not justifying it just saying something like that for me would have been tough due to the personal situation I was in when I made the change. I did not look into Smartchoice so I certainly can not say which is better. What I was getting at is simply some things may work for one person but not another. SIAA offered incentives that were important to me. As for the profit sharing there are pro's and con's to being able to get it at dollar 1. The pro is obvious and the way that it is possible is that the companies will look at the entire SIAA book with them instead of the individual agency. So instead of my agency needing to wait to my book gets to 200k or whatever with them I'm lumped in to the multi-million dollar book that SIAA has with that company. So as long as I'm one of the agencies that has a good loss ratio I will get a piece that is relative to my book size. The down side is I could have a great loss ratio but if the entire SIAA book as a whole is not profitable then I don't get anything.

 

[redsquash]

The pro is obvious and the way that it is possible is that the companies will look at the entire SIAA book with them instead of the individual agency. So instead of my agency needing to wait to my book gets to 200k or whatever with them I'm lumped in to the multi-million dollar book that SIAA has with that company. So as long as I'm one of the agencies that has a good loss ratio I will get a piece that is relative to my book size. The down side is I could have a great loss ratio but if the entire SIAA book as a whole is not profitable then I don't get anything.

Thanks for the answer. This make me look more seriously into SIAA. I'm meeting with SIAA rep next week. I wouldn't mind paying the upfront fee, if that helps in the long run. The SIAA website doesn't give much info on new agency start up etc.
Are you getting 15% commission on most lines?

 

[1manshow]

When I spoke with them several years ago, in our area, SIAA had more preferred company contracts. The advice about negotiating the contract was legit. When I said "no way" to 15K upfront it immediately went to 9K, I'm guessing I could have negotiated a lower rate. Same with the contract, when I said it was unreasonable I was told to make a list of what I wanted changed. I'd advise having your attorney go over it before you settle for a mediocre deal. Good luck in your efforts

 

[SEEC P&C]

Thanks for the answer. This make me look more seriously into SIAA. I'm meeting with SIAA rep next week. I wouldn't mind paying the upfront fee, if that helps in the long run. The SIAA website doesn't give much info on new agency start up etc.
Are you getting 15% commission on most lines?

yeah I wouldn't imagine it would say much. I bet if you looked at everyone's different contracts they will vary greatly. Once you sign the terms you agreed to are confidential.

Yes I get from 15% to 20% on Standard business. The one non-standard company gives me 10%. You get paid directly from the companies and get the same commission that the rest of the Independent world gets. You have the direct appointments and like I said once you get them SIAA is not in the picture. Every month you submitt a report to SIAA showing what you were paid in commission and you cut them a check for 10% for the first 10k in commissions. After 10k the percentage goes down in stages.

 

[redsquash]

Yes I get from 15% to 20% on Standard business. The one non-standard company gives me 10%. You get paid directly from the companies and get the same commission that the rest of the Independent world gets. You have the direct appointments and like I said once you get them SIAA is not in the picture. Every month you submitt a report to SIAA showing what you were paid in commission and you cut them a check for 10% for the first 10k in commissions. After 10k the percentage goes down in stages.

Amazing. I'm glad I came to this forum. First I was almost sold on State Farm agency. After reading other people's comments and experiences, I dropped the idea of SF. Then, with a thought of going Independent, I was almost certain to go with SmartChoice, and refused to even consider the other options. Now, it seems SIAA could be better than SmartChoice, even after paying 10k or so upfront. I'm meeting with him next week, may be then he will bring in the terms.

Thanks for your input.

 

[redsquash]

Met with SIAA guy. It seems pretty good at this time. He did mention that contract would be for 15 years, and $8500 upfront fee. I will be negotiating the upfront fee, ofcourse. Should I be concerned with the 15 years contract? How big that deal is?

 

[SEEC P&C]

again it depends on what you are comfortable with. that can be negotiated, mine is not 15 years. I would say the shorter the better so I would at least negotiate it. Even after your contract is up you may decide to continue with them anyways.