Contracting opportunityv with life/LTC shop

[kstein]

Have an interesting situation and thought I'd see what the forum thinks.

A life/LTC shop that has an "in" with a couple hundred or thousand advisors wants to add Medicare to their portfolio. The problem is the commission situation with Medicare is way different than life/LTC and there is the ahip/cert issue (by a principal ) in order for their outfit to get paid by carriers.

The firm wants to do it right so they don't mess up the relationship with the FA and they also see the long term opportunity so they approached me to talk about ways to partner.

The normal override doesn't seem to make sense here in that my agency would be very hands on (scheduling, plan recommendations, AEP reviews) basically we'd treat them like any other client. If I provide that level of help then the fmo override doesn't seem like enough. It would almost be a "reverse" situation where we would warrant most of the commission.

Would it be as easy as making this outfit an loa and then we can pick a commission amt that seems fair for all parties involved and then readdressing in a year or so?

Not real sure what the end game is at this time but it seems like a great opportunity for all parties involved.

 

[Tahoe Ray]

Would it be as easy as making this outfit an loa and then we can pick a commission amt that seems fair for all parties involved and then readdressing in a year or so?

This would be the easy route if all of the focus was on first year commissions.

Paying them renewals is going to turn your agency into an accounting firm.

Can you just add them on a split and have you both as agents (you're the writing agent and they're secondary on the app)? You could also have them in your downline doing this.

I don't do Medicare but have several of these partnership arrangements.

There are a lot of different ways to structure them.