Creative Marketing

[J.R.]

I'm in the process of putting together a new marketing campaign focusing on various trade associations in some of the areas I target.

As it stands now I have a general plan of attack, but I'm up in the air as to how I approach compensation regarding incentives for the board of directors, referrals, etc.

I imagine that any organizations (e.g., Chamber of Commerce, Small Business Association, etc.) gets specific amount per application or commission percentage, but I'm not sure what is legal and/or the general norm.

If anybody has experience pitching associations on becoming the insurance guru for the members of the association I'd appreciate your input.

 

[somarco]

Most associations & chambers are looking for non dues revenue. For the right price they will endorse almost anything.

You cannot pay them a commission unless they are a licensed agent. If they are a licensed agent then why do they need you?

I have worked with associations in the past where the E.D. was licensed and demanded payment under the table. I didn't have a problem since he would be given a 1099 and the 5500 would reflect monies paid to him.

The non dues revenue needs to be structured as a per app fee or something not directly related to premium.

 

[J.R.]

Most associations & chambers are looking for non dues revenue. For the right price they will endorse almost anything.

You cannot pay them a commission unless they are a licensed agent. If they are a licensed agent then why do they need you?

I have worked with associations in the past where the E.D. was licensed and demanded payment under the table. I didn't have a problem since he would be given a 1099 and the 5500 would reflect monies paid to him.

The non dues revenue needs to be structured as a per app fee or something not directly related to premium.

Thanks for the info.

What is an E.D.?

 

[slushhhpuppie]

You cannot pay them a commission unless they are a licensed agent.

Not exactly.

This varies from state to state. California & Florida allow commission rebating to unlicensed individuals only on life products, not variable contracts. Pennsylvania allows commission sharing with unlicensed consumers & to professionals as a referral fee, as long as there is a written agreement and detailed documentation is kept for at least 5 years.

If this is the direction that you want to go, check with your state.


IMHO.... I can't imagine ever offering a client a rebate on my commission. I give objective advice and provide my clients access to the best products from the best companies, individually tailored to their situation.

My business card says "Licensed Insurance Adviser". Offering a kickback for doing business with me would be counter-productive to my ultimate goal of creating a trusted, professional image in the eyes of my clients.

 

[somarco]

ED = executive director

Of course it also refers to a condition that can be rectified by a little blue pill.

Or so I hear . . .

 

[J.R.]

ED = executive director

Of course it also refers to a condition that can be rectified by a little blue pill.

Or so I hear . . .

HaHa, insert joke here......