Licensed Agent Partnering with Unlicensed Business Partner

[JulieRios]

Hi,

I have accepted to get a partner to help with the business. Partner does not want to get licensed for insurance, he wants to do branding/marketing and help grow the business. How do I pay my partner if he is not licensed? What is a form of payment structure to make sure he is getting paid fairly, he only wants 30 to 40% of ownership. I am new to this area in business. I look forward to your responses.

Thanks,

Mary

 

[GingerNinja]

Create an LLC with both of you named as partners, get your llc licensed. Have each insurance company 1099 your LLC and deposit money in your company account. Take out distributions based on your agreement.

 

[xrac]

There is no way in the world that I would take on a partner that doesn't want to sell. Production is what this business is all about. Branding and marketing sounds like he/she will be spending money and playing around on a computer. SOUNDS LIKE A BAD IDEA TO ME!

 

[GingerNinja]

There is no way in the world that I would take on a partner that doesn't want to sell. Production is what this business is all about. Branding and marketing sounds like he would be spending money and playing around on a computer.

Yes, I totally agree.

 

[AllstateMaine]

Branding/Marketing can only go so far. This business is strictly about production. There are some indy's that do NO marketing and kill it. There are some that marketing like hell and can't get moving. Marketing is the "sexy" thing that everybody thinks works. Don't give up what you're EARNING. You're putting the meat on the table, not the marketer.

 

[pfg1]

I think I agree with XRAC, especially if that person will be a "partner".

I think that if I was taking on a partner that wasn't going to be licensed and produce (even as a referral agent) then my "partner" would be an "employee" and be paid as such, and have zero ownership. You can't share commissions with a non-licensed person, so I would pay them based on production - hourly/salary plus commission for hitting goals.

Personally, I think a "partnership" is a bad idea regardless. They usually end bad. An informal partnership might work, but a formal one... no way.

 

[agentinsouth]

Hi, I have accepted to get a partner to help with the business. Partner does not want to get licensed for insurance, he wants to do branding/marketing and help grow the business. How do I pay my partner if he is not licensed? What is a form of payment structure to make sure he is getting paid fairly, he only wants 30 to 40% of ownership. I am new to this area in business. I look forward to your responses. Thanks, Mary

Run..... I can say with 100% confidence that this is not going to work!

 

[superjohnadams69]

Yeah I don't think this sounds like a very good idea. Sounds like he wants you to do all the work while he "grows the brand" which does sound like he plans on sitting around and using your hard earned money to pay for ads. Giving this guy any ownership especially 40 percent doesn't seem like a good idea. It seems like he plans on taking advantage of you.

 

[xrac]

You will live to regret this decision! Are they investing any money into the business? You are with your production and renewals! Who came up with the idea of a partnership?

 

[superjohnadams69]

Yeah this seems like a very bad idea. I know he is unlicensed but does he at least have any credentials in marketing? Either way it seems like he is trying to take advantage of you since he is not only asking for ownership but 40 percent of the entire business when you are going to be doing all the real work. Seems like all he is going to do is spend your money on ads which shouldn't merit him 40 percent of the entire business. I'm guessing this partnership was his idea.