Help W/ SIAA and Smartchoice Calculations

[iiinycboi]

Just want to know if you guys are willing to help me create a spreadsheet to see which is the better choice by numbers.

From what i gathered so far

SIAA - 9500 down, 10% commission to siaa, 25% of book belongs to siaa if you sell, 10 year commitment, 15% on new business, 12.5% on renewals.

Smartchoice - 0 down, 30% commission to Smart(capped at 15k/50k), 2x buy out if you leave, no "term" commitment, 15% on new business, 12.5% on renewals.


Please help me with whatever i left out. Thanks

i will be posting the spreadsheet if this is okay and help others decide which is better for their agency based on their plan.

 

[CaptiveGuy]

One key piece you are leaving out are the profit share/loss ratio bonuses. Compare each on that as well.

Run the numbers in regards to different premium amounts (250k, 500k, 1M, etc) and see how the fees and sharing work out. Also, the wholesaler can't guarantee you will be directly appointed with certain companies so call and see before you commit to one.

 

[iiinycboi]

i see, thanks i will factor in profit sharing. Does anyone have any info on the calculations they use for profit sharing

 

[PDX_Agent]

I have all my own direct appointments so I need some clarification on the commission amounts you stated.

You said $9500 down and 10% commission to SIAA. Does this mean 10% of the premium or 10% of the commision you earn then goes to them? If they pay 15% and then they get 10% it certainly sounds in your post like you only are making 5% new 2.5% renewal. Is that accurate or did I just read it wrong?

 

[Guest]

First of all, you better shut your mouth talking about confidential info, i know you signed a confidentialty contract before they gave you all the info.

Your just looking at dollars, you dont understand all the support and extras we get with SIAA

 

[Sales71]

IIlnycobi..

I have Reviewed that for about 3 month this year and I came up with SIAA as my go to for IA. Will move with that decsion next year. Since i have to sell my agency.
- - - - - - - - - - - - - - - - - -
Here is a list of all the major players in the IA market...


Smart Choice
States - Several
http://www.smartchoiceagents.com/

GlobalGreen Insurance Agency
States - Several
http://www.globalgreeninsuranceonline.com/

SIAA – Strategic Insurance Agents Alliance
StatesSeveral
http://www.siaa.net/

Select Insurance Markets
States - Several
www.sim-ins.com

Brightway Insurance
States - Several
www.Brightway.com

FMJ Agency Alliance
States - Several
http://fmjagency.com/

Paragon Insurance Agencies Inc
States – TX
http://www.paragoninsagencies.com/

Couri Insurance Associates
States - AZ, CO, IL, IN, IA, KS, MN, MI, MO, WI
http://www.couriagents.com/

ASNOA - Agent Support Network of America
States - Several
http://asnoa.com/

Add those to your spreadsheet as well. Good Luck

 

[rudy323]

Let's assume for simplicity sake its 12.5 NEW business and 12.5 renewal, it costs at least 2.5% to get NB anyways

If you sell $400,000 in premium per year for three years
Your commission $50,000 per year/$150k for the period

SIAA takes $25,000; $15k from commissions $10k from your start up fee

Smart Choice takes $45,000 as its cut; $15k per year which is 30% of your commission

I am in the same predicament, I know the right answer but ponying up the $10k is the tough part

 

[Sales71]

Let's assume for simplicity sake its 12.5 NEW business and 12.5 renewal, it costs at least 2.5% to get NB anyways

If you sell $400,000 in premium per year for three years
Your commission $50,000 per year/$150k for the period

SIAA takes $25,000; $15k from commissions $10k from your start up fee

Smart Choice takes $45,000 as its cut; $15k per year which is 30% of your commission

I am in the same predicament, I know the right answer but ponying up the $10k is the tough part

Just a word I am not with SIAA yet, but i have notice with every business you have to have start up money. If its true and its 10K indeed...Maybe they can make a payment plan for you or something.

10K with all the appoitments they have wow thats a good deal to me.

By the way if you do not have 10K or even 40K at the start of the IA you will have a really hard time making in it as an IA. The E&O insurance I think cost about 2K alone...

 

[Bertolinoins]

Profit sharing is the key.

 

[Sales71]

Profit sharing is the key.

Yes forgot to mention that as well.

Bertolionins are you part of SIAA?