Building an Agency from Scratch.

[insuranceexec]

Three final Questions:

What type of experience do you bring to the table?

What makes you different than everybody else?

I am asking you these questions so that you may get an idea of how to recruit.

Why would you hire these agents as "LOA"? When you can put them direct to the company; unless you are paying them above street. And if that is the case why not put them at street and pay them an "in-house" bonus on the rest. In my very humble opinion I do not like the structure.

 

[retread]

Three final Questions:

What type of experience do you bring to the table?

What makes you different than everybody else?

I am asking you these questions so that you may get an idea of how to recruit.

Why would you hire these agents as "LOA"? When you can put them direct to the company; unless you are paying them above street. And if that is the case why not put them at street and pay them an "in-house" bonus on the rest. In my very humble opinion I do not like the structure.

I agree. I think he is just trying to build a pyramid.

 

[jsrconcepts]

I am sure we all have dealt with Network Marketing Companies before, but no matter where you work there is a Pyramid so don't confuse yourself. Your IMO gets more money than and so on and so forth, it isn't about that, its all about control, if I pay for the Leads, Licensing and Training then they are going as LOA Agents, if they pay for it then they are GA, I have to get something out of and my agents are happy because they all get paid on time and they all make great money.
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Also retread as I said before an LOA Agent is a Fully licensed Agent. They understand the agreement! You don't have to agree with it, only the agents do.

 

[Mega producer]

Pardon my ignorance, but what are LOAs ?

 

[insuranceexec]

(LOA) Licensed Only Agent. Meaning that all of their commissions are assigned to you, and then you are responsible for paying the agents.
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I am sure we all have dealt with Network Marketing Companies before, but no matter where you work there is a Pyramid so don't confuse yourself. Your IMO gets more money than and so on and so forth, it isn't about that, its all about control, if I pay for the Leads, Licensing and Training then they are going as LOA Agents, if they pay for it then they are GA, I have to get something out of and my agents are happy because they all get paid on time and they all make great money.
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Also retread as I said before an LOA Agent is a Fully licensed Agent. They understand the agreement! You don't have to agree with it, only the agents do.

Are you paying them a certain amount on a particular product? If so; why would it matter.

If you are going to pay say 70% regardless; you would get "your" money in the form of an overide from the company. Why take all the money and pay them out of your pocket? Unless you have a great deal of chargebacks, and want to control "cash in" and "cash out". Please tell me where either you or the agent benefits from being a "LOA." I would say out of say 2000 total agents I only have about 12-15 that are 'LOA." The only reason for this is that they could not get contracted on their own; and my managers vouched for them. This is the only benefit that I can see from this; please show me the "light."

 

[Todd King]

Give out good contracts and make them buy their own leads. Alot less headaches for you that way. If an agent buys their own leads they are less likely to let them pile up. Why pay your agents when the insurance companies can do that. Once again, alot less headaches for you. Unless of course you are looking at keeping all the renewals if they leave you. Of course that brings up the question of vesting your agents. It takes a good bit of resources to do want you're wanting to do. You're taking on a good bit of responsibility any way you go. Are you going to cover their E&O also? Do you have the ability and means to negotiate good contracts for yourself? How long have you been in the business yourself?

 

[insuranceexec]

Todd:


I think you have just re-stated the last 18 posts in one short paragraph. Maybe he will listen to you.

Do you see any real benefit coming from an agent being "LOA"? I know that you have been in the business for awhile, and run a class organization so I value your opinion.

 

[insuragent]

Interesting way you juxtapose a telemarketing organization using LOAs (call center in your description?) to the distribution channel utilizing an MGA who recruits GAs (the standard model)... I think the "call center" concept you use describes the setup that produces the problem agents we are faced with.

Although most view a "call center" as a telemarketing organization using a predictive dialer and unlicensed telemarketers cold calling for leads, your description is quite revealing... the shady operations we all know and loathe. I know of one such group, or "call center" that operates in the manner you describe. Have others on the forum witnessed this structured model? IOW, how common are they? (I'm not referring to UA, NAA, etc.... although this is a close resemblence)

AmeriLife & health does this exactly!!!
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"Just make sure the agent knows what he is signing. It should be mandatory to make sure newly licensed agents know how a distribution channel works so that they know where they fit in."

I agree 100% to this! They should also tell you how long you would be committed to them should you want to leave (some contracts are 1 year from last witten business some are 2 even 3 years!!) and explain everything 100%