Leaving agency after 14 years

[somarco]

why would I pay for my business.

Uh, because you wrote it while in the employ of someone who provided you with an office, support staff, possibly a salary and benefits. In other words, they gave you the ability to do something you probably could not have done on your own.

Obviously you will find out what will happen when they leave. I have just related my personal experience as well as what I have observed from agents I know.

They may give you a pat on the back and wish you well.

Or they could kick you out the door and dare you to even try to take any of those accounts.

Either way, I am sure you will report back.

 

[OHInsAGNT]

I can't imagine that you actually do not have any kind of employment agreement at all. In some states, a non-disclosure agreement is a requirement due to confidential information being made available by your access to private information of individual consumers. My guess is that was signed at some point. I've never worked for anyone without an agreement. If your GA has had a successful agency for so long, I'm sure he or she is under advisement of an attorney who would have buttoned down such issues in their favor long ago. I'm not saying you shouldn't make the jump. Your employer has a lot of leverage though. You need to be willing to make it a loss they can weather. Why not propose splitting your accounts based upon your current commission split? Both parties walk away with the same income.

 

[mnmjski]

Quote:
Uh, because you wrote it while in the employ of someone who provided you with an office, support staff, possibly a salary and benefits. In other words, they gave you the ability to do something you probably could not have done on your own.

That's why I'm leaving. The revenue I've generated for the company over 14 years has far exceeded my expenses and having to support 2 owners salaries who do not have a book of business doesn't make sense anymore.

For the sake of others, I will report back...

 

[somarco]

having to support 2 owners salaries who do not have a book of business doesn't make sense anymore.

It never does.

All the more reason to expect a fight.

Not being negative, just cautiously realistic.

Good luck.

 

[GreenSky]

The revenue I've generated for the company over 14 years has far exceeded my expenses

That's exactly what all employees are expected to do. How many businesses intentionally pay their employees more than they return to the company?

Rick

 

[Guest]

What about what they couldn't do without him?!?!

In other words, they gave you the ability to do something you probably could not have done on your own.

Somarco, you seem to be forgetting about whatever he already made for them as well, which is common, many people don't realize the wealth they bring to a position, that's why they usually just take what's offered without holding out for more money/incentives, whereby diminshing their value, and selling themselves short.

 

[ABC]

After 14 years you should have a good idea of what you are bringing in off of your block of business.

Its sounds like you are working for not very business savy owners. To work for any size company and not have an agreement in place is very odd. Then add they do not have clients of their own. They might close the doors after you leave.

Take you biz and run with it.

 

[moonlightandmargaritas]

By law, they can't stop you from earning a living even if you signed a non compete, in most states.

Yes, but...

With a signed non-compete, a judge can enjoin you from making contact with the clients for a set period of time (generally 1 to 2 years).

I've testified in two different cases.

Now if the client calls you...

 

[mnmjski]

After 14 years you should have a good idea of what you are bringing in off of your block of business.

Its sounds like you are working for not very business savy owners. To work for any size company and not have an agreement in place is very odd. Then add they do not have clients of their own. They might close the doors after you leave.

Take you biz and run with it.

Now this is what I'm screaming. Not literally of course.

I know exactly what my block brings in outside of any bonuses that they have been getting and not sharing.

They are actually good business people, but, as their first direct sales rep., they were learning as they went like I was and over the years they relyed on trust. As many of you know, after years of producing, it gets difficult to keep producing high levels of new business without sacrificing the service of existing clients. I am the producing agent for approx. 1/3 of their total business.

 

[somarco]

Somarco, you seem to be forgetting about whatever he already made for them as well,

Rob, it is quite obvious you have never had a real job. Otherwise you would not have so much trouble with this issue.

Now if the client calls you...

That is not a good defense.

Besides, it doesn't matter if they called you or you called them . . . even to say I have gone and here is my new number. It the former employer wants to file suit they can. They don't have to PROVE anything to get a judge to sign off on the suit. All that is needed is to ALLEGE they have been harmed by your action.

Once you are served, you have a specific time frame in which to respond. Fail to answer and they move for a summary judgment.

If you fight it you have legal fees. They go thru the discovery process where they subpoena your phone records, email records, transcripts of phone calls, etc.

Anyone can file suit for a few hundred bucks and you have no choice but to answer unless you want to give in by default. Even without a signed agreement, they can allege you violated their trust and used their resources to "build" your business.

This business is different from selling cars or vacuum cleaners. There is no residual income in that industry.

Insurance has residuals that are calculated in the business income stream. That is what makes leaving a salaried position more difficult with or without a signed agreement.