Commission Split Renegotiation

[Championpatriot]

I will try to be more pointed in my answers..but again I am just getting a reason this will not work rather than IDEAS and trying to give some info along the way to help...

Jealous of loan, not even close. Just thought it was relevant to anyone that was going to provide ideas. Again I am not new and was there from the beginning, had no salary etc and my production helped get a good portion of the loan waived. So again I thought this was relevant in developing the value and what ideas to bring to the table when renegotiate.

Josh, no I do not want a higher split because I think he is making loads of money off me. I know exactly how much he is making, I know our book numbers etc. My primary goal is to help him and help me for the long run, whether you believe me getting 80/80 would do do this or not . It would because I can do the job the right way. The simplest way I can put this is I talk to my current clients to much and therefore takes away my selling ability. I want to negotiate the ability for me to increase my cut, either by 80/80 or AGAIN from ideas agency owners here would maybe entertain...So I can hire my own people. He is not going to hire a CSR..have hammered on that one for long enough with him.

Josh you know my views on the resources taken etc of a commission 1099 agent so I will refrain there..but to respond to your charge backs...I get charged back now for cancellations and policy reduction changes etc. and always have...This is not a common thing for your agents?? Very curious about this one??

No smart business man will shun my advance for negotiation if well thought out. Quit telling me to move on at this point, I get it. But also get from my side I will squeeze this orange until I can see all the pulp first.

 

[kgmom219]

Best of luck to you. I hope it all works out.

 

[Josh]

No smart business man will shun my advance for negotiation if well thought out. Quit telling me to move on at this point, I get it. But also get from my side I will squeeze this orange until I can see all the pulp first.

I don't know this guy from Adam so I don't know how smart he is. That said, if I had an employee trying to squeeze me, eventually I'd say I don't like being squeezed and I don't want to be working with someone that feels like they need to squeeze me. If you're this unhappy with your current arrangement, if I was the agency owner, I'd like to think I'd realize it was only a matter of time before you walked and tried to take *my* clients with you. It hurts, but sometimes you have to rip the bandaid off. To use another cliche, the squeaky wheel may get the oil, but it's also the first to get replaced.

 

[Jbbarea]

Me thinks the lady doth protest too much! Champion, I respect the process your doing but you are rejecting every bit of advice offered. And we all pretty much have given you the same advice. Your fighting against the tide. Bottom line is you don't want to go on your own. Your not willing to walk so you have zero leverage. And your boss knows it. Everyone is giving you really good advice.

 

[Championpatriot]

Who is adam?? Just kidding..lol...This squeezing I speak directly of is not a personal thing rather a business thought. I am not talking about squeezing the agent owner, rather the opportunity that is here now and the opportunity for the future with the current agency. Why is it so hard to answer my question?? How am I not making it clear I have hit a ceiling in which it is not beneficial for both of us for me to be stagnant. You (the agency owner) are providing the proper tools for me to excel to the next floor. No problem, I have no problem with how you want to do your thing for yourself. But if we do it this way XXXXXXX I believe you will be happy with the results...

Again it seems the first responses want to me like I am some newbie that is trying to get more from an owner. This is preposterous, any reasonably intelligent business person would appreciate the way I go about my business. I do it daily the same way with clients, I "squeeze" every last policy I can from them, however in doing so it is done in their best interest firsts. I do not push policies on something that makes no sense for some one. So squeeze may have been a poor choice of wording.

So again back to the same question, if I could make you more money, via new policies, higher bonuses, higher retention etc how should I package a proposal you would as an agency owner consider...again let me be clear...IF I COULD MAKE YOU MORE MONEY, HIGHER BONUSES, HIGHER RETENTION how would a proposal look that you like as an agency owner?

You would think an agency owner would be pretty appreciative that someone was trying to get creative rather than focus on walking out the door and taking *their* clients.

By the way, I do not identify with cliches. If we must compare me though, I am more like the horn, I may make a lot of noise but I get the job done.

 

[Josh]

This just keeps going around in circles man.

 

[Championpatriot]

Josh, this is a forum..And I like circles, they are infinite!

Listen, I am not not desperate on a cliff and about to fall..I am just trying to get together with other industry professionals and learn. Either way how this turns out I learn a good lesson. So I do appreciate your input either way...

However still you say it is going around in circles when no one has actually given a credible idea..going out on my own is obvious, that will be my last resort if I were to decide on doing so.

Oh maybe this will help add to this and how you guys may formalize an actual credible idea(s). My spouse is an experienced agent (been an agent much longer than I have been). She works for an actual company, not an agency. However I have been considering telling her to stop working and under her we start her on her own. With giving the owner of the agency I work with equity as we build. Win win for both.

 

[Jbbarea]

Josh, this is a forum..And I like circles, they are infinite!

Listen, I am not not desperate on a cliff and about to fall..I am just trying to get together with other industry professionals and learn. Either way how this turns out I learn a good lesson. So I do appreciate your input either way...

However still you say it is going around in circles when no one has actually given a credible idea..going out on my own is obvious, that will be my last resort if I were to decide on doing so.

Oh maybe this will help add to this and how you guys may formalize an actual credible idea(s). My spouse is an experienced agent (been an agent much longer than I have been). She works for an actual company, not an agency. However I have been considering telling her to stop working and under her we start her on her own. With giving the owner of the agency I work with equity as we build. Win win for both.

Now I know for sure; your jerking our chain. You don't actually want advice. This is some kind of weird game. But I have to admit, well played. You had me going for a couple of days.

 

[Championpatriot]

Come on Jb..I not jerking anything..I am sincerely attempting to develop what Kgmom219 suggested, my 5 and 10 year plans. If I do not succeed in this particular effort I will move on from the idea and accept it as is. However if I do nothing without trying, thats not failure thats just stupid.

Lets try to start back at square one and maybe I will get a better answer:

For agency owners if you were open to hearing proposals that included one of your successful contractor agents investing their dollars into your agency, what ideas or proposals would you entertain. This is as simple as this thread can get.

Two sets of answers if you could, the second what type of proposal would a reasonable proposal look like you would entertain if I also provided equity in my spouses agency. And the reason this would be beneficial to you (agency owner) is because he is captive, my spouse would have the other non available markets to you. So we would not directly competing and my new policies would still be directed towards where I am now.

Jb I think you skepticism comes from the way our industry can make us suspect of ulterior motives..well understood. But really I am just a challenger of the status quo.

 

[Jbbarea]

I'm going to take 10 Minutes from spending time with my kids and try to give you a real answer:

1. Owner perspective: I have a successful business with X agents bringing in business for me. The split I have with them gives me a little padding to cover my expenses, and some profit on top of that. I run it the way I like it, I've built it, I am happy.

2. Your Perspective: I'd like a greater participation in your business. I want to be your partner. In exchange for equity in the business I'll offer X,X, and X. There is no downside to you because it's all gain. Don't you agree?

3. Owner: Yes, that sounds really great, but I'm kind of happy with the way things are right now. No reason to rock the boat and I've never really liked working with partners. Tried that once and it didn't work out.

4. You: I can understand that. Why don't we do this; Give me 90 days of a higher split. Don't give me any marketing, support, or leads. Give me a prorated cost that the expenses of office space, insurance, phone lines, and internet would cover and remove that from my new proposed split. If at the end of that time, I can prove to you the benefit of this new arrangement then let's sit down and work something out. If I can't prove to you the benefit in 90 days, then I'll go break out on my own. Fair enough?

Now listen Champion because this part is important. Do NOT do this unless you are willing to leave. If you are not willing to leave at the end of an unsuccessful trial period then you lose credibility and prove that you have zero leverage in the negotiation. Secondly, the telling him you leave part is important because it will make him truly understand that he might lose you regardless of how things turn out.

This is solid advice based on real world experience and 30 years of negotiation. You have to be willing to walk away, otherwise don't even bother negotiating because he's got you by the balls.

Good luck...