SO wait - are you getting paid by your IMO or by the carriers directly? If you are getting paid by your IMO this would be a good time to evaluate whether your entire set-up makes sense. I'm not trying to sell you anything, just saying in my experience/opinion I'm happiest having multiple IMOs compete for my business and getting paid directly by the carriers daily. I require zero IMO support and I don't ask for anything other than the highest possible contract short of volume requirements. If you are producing your own leads and working referrals there's no reason to give up any more spread than necessary. The ability to commission split should be right on the carrier app having nothing to do with the IMO (especially when the split producer is going to be in your downline).
P&C/Life "Partnership" split
- Thread starter Whammer1249
- Start date
SO wait - are you getting paid by your IMO or by the carriers directly? If you are getting paid by your IMO this would be a good time to evaluate whether your entire set-up makes sense. I'm not trying to sell you anything, just saying in my experience/opinion I'm happiest having multiple IMOs compete for my business and getting paid directly by the carriers daily. I require zero IMO support and I don't ask for anything other than the highest possible contract short of volume requirements. If you are producing your own leads and working referrals there's no reason to give up any more spread than necessary. The ability to commission split should be right on the carrier app having nothing to do with the IMO (especially when the split producer is going to be in your downline).
- Thread starter
- #12
Whammer1249
Expert
- 27
I'm paid by my carriers directly. My IMO (TruChoice Financial, was Ann Arbor Annuity before their merger) is absolutely phenomenal to work with. Haven't had a need to have IMOs compete for me because I'm happy with the one for the business I do. But I agree, I wouldn't want the IMO paying me.
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I agree a 50/50 split seems fair. Trial it out for a year and agree to review it.
Whatever you do with this agent...GET IT IN WRITING, including what happens to your business if either party decides to terminate the agreement? I know from a 5-year effort that turned sour it is not a fun situation. Prior to that, I worked as a company rep encouraging P/C shops to write life and annuities for themselves. I encountered a very prevalent attitude for the P/C guy to protect his book of business, period. They were more afraid of losing a good P/C client than whatever "split" they might make with a life referral. They may talk a good game up front, but when it comes time to pass along referrals from their prized commercial book...don't expect much. Personal lines referrals were easier to come by, but often less profitable and more time consuming. You can't make a living sell term life policies to 35 year olds. Splitting anything there is a flat waste of your time.
Why not just say you'll be happy to take care of his clients....NO SPLIT. Work on developing your own source of referrals from CPAs and CFPs who don't expect you to pay them, they just want to know their clients are well-served and that you're not a threat to their business.
If I were a newer agent I would focus exclusively on selling individual DI in the professional classes, i.e. doctors, lawyers and engineers. Those contracts pay good comp including a nice stream of renewals. You can also market individual DI to employer sponsors where you can negotiate discounts/underwriting breaks with the carrier. Build your business and book of renewals that way.
I tried for years to be a generalist....a mistake.....specialize and you'll write much more business and simplify your life at the same time.
Why not just say you'll be happy to take care of his clients....NO SPLIT. Work on developing your own source of referrals from CPAs and CFPs who don't expect you to pay them, they just want to know their clients are well-served and that you're not a threat to their business.
If I were a newer agent I would focus exclusively on selling individual DI in the professional classes, i.e. doctors, lawyers and engineers. Those contracts pay good comp including a nice stream of renewals. You can also market individual DI to employer sponsors where you can negotiate discounts/underwriting breaks with the carrier. Build your business and book of renewals that way.
I tried for years to be a generalist....a mistake.....specialize and you'll write much more business and simplify your life at the same time.
