I just made the leap from captive to independent. I like it so far but just like before I still have to sell to make a living. I hope to build a good referral base with some captive agents. Problem is I'm probably not gonna have many referrals to send back since I can write pretty much everything. I was thinking about offering to split my new business commission, not renewals, for any referral I write that a captive sends me. Do any of you do this and does it work? When I was a captive and sent referrals to an indy agent I was lucky to get a thank you once a year so I thought this might incentivise them to send more referrals to me.
Indy Splitting Commissions W/Captive
- Thread starter cjones
- Start date
- 7,066
That really isn't something I would consider doing. I have never split a commission with another agent. If it is a product I don't sell I just give it to them in hopes that some day they may return the favor. Some do and some don't.
- Thread starter
- #3
I think maybe you misunderstood what I was saying. I am trying to get referrals not give out referrals for P&C business. I will be doing all the taking and none of the giving in my situation because I can pretty much write anything so theres basically nothing to send back to the captive agents. Therefore in order to entice them to give me referrals I think it would be good to reward them. I could do gift cards but that seems to never work so I thought maybe splitting the new business commision so that would keep them interested.
MrProducer
Super Genius
- 240
Are you doing just P & C, or are you also doing Life/Health?
AZ Insurance Guy
Expert
- 40
most captive agents are unresponsive to Independents trying to earn new business from them. A split with them would probably get there attention, but could be against their contract. and what if that piece of business falls off the books right away, and you already paid them?
I don't ever want to be the other agent's bank on a split case. Once was enough. I wrote an annuity case under my contract and paid the other agent his split. The client died 8 months in, and the commission was reversed. I worked harder to get the other agent's half of the chargeback than I did getting the case to begin with. From then on, if we both weren't appointed with the company, I walked away.
- Thread starter
- #7
I'm primarily p&c. I didn't think about what would happen if the business didn't stick. Maybe I should just try the gift cards for referrals and be done with it.
- 7,066
That sounds like a much better way to go. The other way you are taking way too much risk.
- 4,132
the other thing to keep in mind if you want to continue to get referrals is ONLY do what you're asked to do. Do not take it as an opportunity to twist away life business or any other business for that matter from the agent who refferred you.
Do that once or twice and what any refferals from other agents dry up.
I just had to tell another agent the other these very same words... treat other agents how you would like to be treated.
Do that once or twice and what any refferals from other agents dry up.
I just had to tell another agent the other these very same words... treat other agents how you would like to be treated.
