Buyout Fell Through... Should I Leave or Stay

[TravisT8016]

Couple responses.

I would have about an hour commute to that medical device gig. Be on call on the weekends. Work life balance is important to me. Spending 2 hours in the car every day sounds brutal.


I'm starting to agree with most of you that it was a little too good to be true situation. Honestly if I were in his shoes no way I would sell. So I can't blame him, I just wish he would have told me initially instead of wasting 18 months of my life...

My commission's are about 35k before our split. He feels really bad he broke our contract... so I bet he would let me take those with me if I were to leave. So with that money coming in, along with the referrals from my dad, and life production I think I could be making what I am now within 12 months.

My biggest worry of going on my own is hiring a personal lines CSR and paying that salary. I don't mind giving commercial clients my cell phone to call me but I don't want my cell phone ringing off the hook for personal lines ID cards. What are the limitations of an unlicensed CSR? They can't make changes to a policy correct? Really would just be a phone answer/note taker and could forward me the change and I could do it? Obviously not ideal long term but short term.

Someone asked if we're loyal to this market and that answer is no... except my wife is a teacher and she is under contract until May 2018. So kinda in a box. We live well under our means. Have some money in the bank... so we would survive if it took 12 months to get off the ground... but the boat would have to wait another summer ha!

 

[Sam Adams]

You want to be an agency owners but you said your numbers are below average. Why do you think you will be able to be successful if you are a mediocre producer? I would never pay a low producing lsp 48K and then offer them ownership. You need to prove yourself as an producer first.

The medical device industry is super competitive and a lot harder learning curve then selling auto insurance. I never saw any newbie make 150K unless their dad is a surgeon. If you can't envision yourself being on call and getting up a crack of dawn to drive a few hours to cover a case then you then you will never make it. I spent 15 years in the industry and left so that I could have my own business as an insurance professional.

It sounds like you want the benefits of being a business owner without having to put in any work.

 

[TravisT8016]

You want to be an agency owners but you said your numbers are below average. Why do you think you will be able to be successful if you are a mediocre producer? I would never pay a low producing lsp 48K and then offer them ownership. You need to prove yourself as an producer first.

The medical device industry is super competitive and a lot harder learning curve then selling auto insurance. I never saw any newbie make 150K unless their dad is a surgeon. If you can't envision yourself being on call and getting up a crack of dawn to drive a few hours to cover a case then you then you will never make it. I spent 15 years in the industry and left so that I could have my own business as an insurance professional.

It sounds like you want the benefits of being a business owner without having to put in any work.

He offered me the deal... I accepted... He told me to focus on gaining the trust of the current book which I was going to be taking over. I was going to be paying over a million dollars for the book, so I don't see your argument of not wanting to do any of the work... I think going 7 figures in debt/risk and busting it to retain and grow that business classifies as work...

150k in medical device sales might have been a little over zealous. Prob 65-75k year one as an associate with 150k within five year if can get promoted to a rep.

 

[VolAgent]

He offered me the deal... I accepted... He told me to focus on gaining the trust of the current book which I was going to be taking over. I was going to be paying over a million dollars for the book, so I don't see your argument of not wanting to do any of the work... I think going 7 figures in debt/risk and busting it to retain and grow that business classifies as work...

150k in medical device sales might have been a little over zealous. Prob 65-75k year one as an associate with 150k within five year if can get promoted to a rep.

As you saw, verbal contracts are worth the paper they are written on. Whatever you do, get the next agreement in writing.

 

[Sam Adams]

His offer of ownership to someone with limited experience was too good to be true. Since he broke his verbal contract with you though I would either start an independent from scratch and let him know you do not have any non solicitation agreement since he didn't keep his word or negotiate to buy in as a minority owner or purchase a portion on the book and start on your own.

 

[LostDollar]

As you saw, verbal contracts are worth the paper they are written on. Whatever you do, get the next agreement in writing.

Unwritteness can/could work 2 ways. Taking op's comments at face value, if he has developed relationships with clients, wants to offer the electronic services that the children of the older clients will want, has developed relationships with carrier reps, has developed relationships with the current agency csrs, developed good understandings of how a multi agent agency should be run and started development of new potential agents, the agency owner may have more at risk than he realizes.

Even though small in volume, it is also possible some of the new business op has brought in has caused owner to reassess what he thinks potential of agency is.

 

[TravisT8016]

As you saw, verbal contracts are worth the paper they are written on. Whatever you do, get the next agreement in writing.

It was in writing... I have too much respect for the man on a personal/friendship level to sue him. I don't see anyone getting ahead except some lawyers if it went that route.

 

[VolAgent]

Unwritteness can/could work 2 ways. Taking op's comments at face value, if he has developed relationships with clients, wants to offer the electronic services that the children of the older clients will want, has developed relationships with carrier reps, has developed relationships with the current agency csrs, developed good understandings of how a multi agent agency should be run and started development of new potential agents, the agency owner may have more at risk than he realizes.

Even though small in volume, it is also possible some of the new business op has brought in has caused owner to reassess what he thinks potential of agency is.

Not really. Agency owner could easily blackball the OP. Who are carrier reps going to listen to, some new guy, or a long-time agency owner they have worked with for years? Assuming the owner has a good reputation.

Also, good way to end up in court. And even if you win, you lost.

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It was in writing... I have too much respect for the man on a personal/friendship level to sue him. I don't see anyone getting ahead except some lawyers if it went that route.

I apologize then. I got the impression it was unwritten.

If it was written, you should insist he offer some compensation for breaking the contract. Think of it as seed money to start your own.

That said, if he is willing to break a written contract, I'd get far away from this guy. His word is absolutely meaningless.

 

[TravisT8016]

[/QUOTE]I apologize then. I got the impression it was unwritten.

If it was written, you should insist he offer some compensation for breaking the contract. Think of it as seed money to start your own.

That said, if he is willing to break a written contract, I'd get far away from this guy. His word is absolutely meaningless.[/QUOTE]



That's where my mind is at now... hopefully that severance will be enough to float until things get rolling... also thought about him and I going through his book and hand picking a handful of clients together that are geographically inconvenient for him and I can buy those clients to help get things rolling.

I had a good convo with MIAA on getting affiliated with them... talked to our management company and that would be seemless as well.

 

[LostDollar]

Maybe a partnership with Dad? Outside Ks City, Shawnee Mission, Topeka or Wichita there might be possibilities for an insurance variant of what car dealers have been doing for years, Small Town Friendly, Big City Savvy.