Partner with P&C Agent
- Thread starter capnjim01
- Start date
Is the agency already appointed with the life company and you will be under his E&O? If so, I think about 75% of the new business is fair. This is assuming you already know the industry and need little to no training. If that is the situation, he will probably be provided bonuses from the company for the sales you make as well as the new commission - no cost or work for him, only new money. If you are newly licensed and need much training, 60-65% as you learn is acceptable in my opinion.
Does he need you to meet quotas or is this just a new service he wants to provide to his P&C clients? Ask if you will have quotas.
If he will be charged for the extra E&O cost, take that into consideration. The commission split is mostly to cover leads he has provided - his clients - and E&O exposure.
If you have some experience, buying your own E&O, and responsible for your own appointments, you are really only paying for the leads. I would hold out for 80%.
Be careful of agent contracts. Read it well and understand it before signing.
Good luck!
Does he need you to meet quotas or is this just a new service he wants to provide to his P&C clients? Ask if you will have quotas.
If he will be charged for the extra E&O cost, take that into consideration. The commission split is mostly to cover leads he has provided - his clients - and E&O exposure.
If you have some experience, buying your own E&O, and responsible for your own appointments, you are really only paying for the leads. I would hold out for 80%.
Be careful of agent contracts. Read it well and understand it before signing.
Good luck!
- Thread starter
- #3
Its hard to find P&C agents who don't also write life and health. Any decent size agency usually has a person in house that specializes in it.
That said, there are P&C agents who don't bother with life or health, so the opportunity exist. Just don't expect it to be the majority, it will be the very small minority.
Dan
That said, there are P&C agents who don't bother with life or health, so the opportunity exist. Just don't expect it to be the majority, it will be the very small minority.
Dan
///MJay
Expert
- 96
Also keep in mind that your 70% probably won't equal a true 70%. Most P&C carriers don't pay what a Life carrier pays. Ex. I was considering a similar partnership and one of the 2 companies in place paid 60% across the board. So your 70% just became 42% in relation to the premium. Their 2nd company was between 50%-85% so your cut would be 35%-60%. It may still be a good deal for you, I am not talking you out of it. But be aware of that. I have products that pay 125% of premium so for me it was just too difficult to reconcile in my mind the large cut. And they weren't open to contracting as my downline on those products so we could both make more. On a sale for the 125% they would have made 38% of premium vs 25% and I would have made 88%. But for some reason they weren't open to it. For me it didn't make sense to try and push a far inferior contract for half the pay. But I also know of these relationships working out on occasion. I fully intend to set some others up I just haven't found the right agency yet.
- Thread starter
- #7
I'm not so worried about the commissions, i'st not going to be my main source of income. The situation I'm in is that I just moved to a new state that I don't know anyone so I'll write some people off his book, then the people that his company want write, older or sick people I'll write with some one else at higher commissions. I'll pick up some referrals and get some business there.
Their are four other offices from this carrier in town and I will try to get the same deal with them.
I'm also talking with another carrier with several offices in the area about a similar deal.
Most P&C guys I've meet don't like to write life and don't want to take the time.
Their are four other offices from this carrier in town and I will try to get the same deal with them.
I'm also talking with another carrier with several offices in the area about a similar deal.
Most P&C guys I've meet don't like to write life and don't want to take the time.
liparker86
New Member
- 1
I would love to implement this strategy and stop buying leads. However, I'm very new to the industry and don't quite know all of the logistics of how to make this strategy work. I'm currently under an IMO.
1. Would I contract with the agent or agency?
2. Would I have to add the agent to my downline in order to partner with them?
3. Should I create a joint venture agreement with the agent for a percentage of commission?
4. Can you share any other moving parts that I'm missing?
1. Would I contract with the agent or agency?
2. Would I have to add the agent to my downline in order to partner with them?
3. Should I create a joint venture agreement with the agent for a percentage of commission?
4. Can you share any other moving parts that I'm missing?
- 4,688
I have a P&C agent on my team that writes business on a part-time basis with us, about 1-2 apps per month. She writes FE on the people who don't qualify for her term. She also bundles the Legacy plan with their policy to make it more attractive.
I receive overwrites on her production. To do otherwise is an accounting nightmare.
I receive overwrites on her production. To do otherwise is an accounting nightmare.
