Life Agent Partnering with P&C Agency

[Norwayguy]

First let me start out by saying I did a search and what I came up with looked like people mainly searching for an agency to partner with and that is not my question.

I recieved an email out of the blue from the owner of a local P&C agency. We just finished a first meeting over lunch to introduce ourselves to each other (Okay the meeting ended 2 1/2 hours ago).

The owner was just feeling me out to see if I could add value to the agency, I think he believes I can because his next step is to see if we can come to an agreement about some sort of partnership/joint marketing etc.

He sees there is a couple of ways to work this:

1. He buys me...ie I become an employee of his agency either salaried or commissioned

2. I remain independent but work out of his office helping to build his Life & Health side possible split deal.

3. Some sort of formal referral/joint marketing relationship

4. Informal relationship we hand out each others cards.


I'm looking for advice about how much time to waste on talking to him and what I could really hope to get out of the relationship. I'm pretty much told him I don't want to enter any agreement where I do not own my clients.

Side issues his agency currently sells term (They feel comfortable selling this product), they have a benefits department that does some group health, and Group Life & DI from my conversation I don't believe they do any voluntary products or retirement plans.

I don't sell health insurance but I am actively selling voluntary products in the workplace, plus individual life & di along with Med Supps and LTC things they don't even touch now.

He brought up more than once the benefit of having available his staffed office that my client calls could be answered by one of his people as opposed to going into voicemail (I have my office calls forward to my cell and answer or return calls promplty). My concern with using his office in anyway even if I maintain ownership in my clients is if/when we part ways my clients will have gotten used to calling his agency.

Pros for me:
Acess to his client base, both commercial and residential which would be nice

Possible use of his office in some way (my home office is not appropriate for bringing a client to.

Other than my increasing his sales on the Life & health side I wouldn't bring a large book to his agency...What I mean is that my clients are scattered all over my state and as he mentioned and agrees his agency has a reach only so far and most of my existing clientbase is outside that footprint (however as I've been having some back issues I would like to focus more on the local area in the future.)

Has anyone ever had a situation like this. Do you think its possible any good could come from further discussion or does the fact that he has a benefits department and sells term really make us more competitors.

 

[houcoogster]

It sounds to me like he holds all the cards. He is coming from a position of strength and wants you to make him stronger. I would be willing to bet he will want to "own" any "new" business you write.

As far as answering the phones you could have said I can hire an answering service for $100 a month.

 

[Norwayguy]

It sounds to me like he holds all the cards. He is coming from a position of strength and wants you to make him stronger. I would be willing to bet he will want to "own" any "new" business you write.

As far as answering the phones you could have said I can hire an answering service for $100 a month.

Not exactly...He is coming to me, I'm reluctant to even think about this because I can't see a way to structure it so that both parties can be protected and come out ahead....

 

[Allan Gilbert]

I hie P&C to work for me and it is a win win for every one

 

[669comche]

Not exactly...He is coming to me, I'm reluctant to even think about this because I can't see a way to structure it so that both parties can be protected and come out ahead....

You might want to think about having an environment where he owns the client if it comes from his efforts (i.e. from his existing book, referrals from his clients etc) and where you keep 100% of the clients that you bring in, and the resulting commission.

This way he is still building his agency with your help, however you are protected in the event it goes belly up.

In your case I would look at the situation as gaining 50% of something that you would not have if it was not for him. He too gains, because he is gaining 50% of something that he would not have.

Its a win win for both sides of the fence.

 

[Norwayguy]

You might want to think about having an environment where he owns the client if it comes from his efforts (i.e. from his existing book, referrals from his clients etc) and where you keep 100% of the clients that you bring in, and the resulting commission.

This way he is still building his agency with your help, however you are protected in the event it goes belly up.

In your case I would look at the situation as gaining 50% of something that you would not have if it was not for him. He too gains, because he is gaining 50% of something that he would not have.

Its a win win for both sides of the fence.

This is exactly why I posted....I could agree with that if the client comes from his existing book his agency goes on line 1 as the agent and I go on line two and we agree on a split in advance it still gives me an incentive to work his book and gives him the ability to protect his book.

 

[VaDwayne]

This is exactly why I posted....I could agree with that if the client comes from his existing book his agency goes on line 1 as the agent and I go on line two and we agree on a split in advance it still gives me an incentive to work his book and gives him the ability to protect his book.

I do this now except I sell P&C for an agency and work my existing business of med. supp. clients.

The "50% of something that you wouldn't have had otherwise" is not taking into consideration that doing so will take away from your time, that could have made you 100% of the commission.

I am not sayin it's a bad idea at all, but you should take the above into consideration as well.

 

[669comche]

True. But the sales that come from an existing book are the easiest that you will ever make.

I have never understood why more agents don't get together to form mutually beneficial arrangements.....

 

[VaDwayne]

True. But the sales that come from an existing book are the easiest that you will ever make.

I have never understood why more agents don't get together to form mutually beneficial arrangements.....

I'm with you..

 

[BNTRS]

There's a million ways to approach this. The model I'd prefer is being a resource for products he and his agency aren't well versed in. The best way to stay in control is to have some degree of association with him. Perhaps he sends clients to you, perhaps you advise him and his staff (if he has others selling for him, a lot of P&C guys and gals do) on how to approach a DI, LTC, Perm Life, Group Vol, etc. proposal/sale.

If doing the latter, it's got to blossom into a good relationship, people get greedy and try to cut others out.

A lot of life agents look or these types of opportunities, often times it the thing that propels them into the next level, sometimes it's a mess.