Getting started with a downline.

[Chestnut]

I have been an independent agent, selling life, health, Medicare, worksite, and disability insurance for several years in Michigan.

I have been approached by someone asking me to help him get licensed and trained. I've done a fair amount of training, helping others with their recruits over the years. I'd love to help this guy out but don't know where to start. In other words, I don't know what I don't know.

Do I have to have an agency license to have a downline? Who pays for prelicensing training? Where should we get it? What about compensation (his AND mine)? Are there standard contracts available?

What else do I need to know?

 

[Kevin B Young]

Hey, chestnut! I contracted with a company in Dallas (licensed in 48 states). Under their business plan, you can build your agency without your license. They deal primarily in Life products and do great work with Educators.

While I am licensed in Michigan, I am unfamiliar with their laws. You might consider contacting them.

Feel free to reach out to me to discuss this. I am doing more research now.

Kevin

 

[Tahoe Ray]

Do I have to have an agency license to have a downline?

No.

Who pays for prelicensing training?

The new agent

Where should we get it?

Web CE/Kaplan/wherever the MI DOI says it's acceptable.

What about compensation (his AND mine)?

Assuming you get him set up with your uplines, two ways to do this.

If you've got big contracts, you can just place him at street under you and collect the overrides.

If not and/or you'll be offering a lot of mentorship, just do split cases (both on the app). You'll both be paid directly from the carrier, and you'll both be paid your regular compensation.

Under this method, start with a split weighted more heavily to you and then gradually shift it towards your agent.

You can also combine the two ideas, just make sure that if he's in your downline, he's getting similar comp to whatever the agency down the street is offering to new hires. Agents who start with reduced comp have a tough time in this business unless you're literally giving them leads.

Are there standard contracts available?

You wouldn't normally set up a contract for this arrangement. Either they're in your downline (contracts set up via the carrier) or it's a handshake agreement on splits. I'm sure you could easily draw something up though if that's a concern.

 

[myinsurebiz]

Hey, chestnut! I contracted with a company in Dallas (licensed in 48 states). Under their business plan, you can build your agency without your license. They deal primarily in Life products and do great work with Educators.

While I am licensed in Michigan, I am unfamiliar with their laws. You might consider contacting them.

Feel free to reach out to me to discuss this. I am doing more research now.

Kevin

What Company?

 

[Kevin B Young]

Our Infinite Company

 

[myinsurebiz]

Our Infinite Company

I get this when going to their website:

Deceptive site ahead​

Attackers on 1037.caderoi.live may trick you into doing something dangerous like installing software or revealing your personal information (for example, passwords, phone numbers, or credit cards). Learn more

 

[Kevin B Young]

kbyoungco.com