Partnerships

Discussion in 'P&C Insurance Forum' started by wow314, Jan 19, 2016.

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  1. wow314
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    wow314 Guru

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    How do you and your partner work? Split 50/50? Or each keeps what they sell and split expenses? What seems to work and not work?
     
  2. insurance1822
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    my partner & I are 50/50. In the beginning...you could have (and i did) argue i should get more. BUT...eventually you learn that having a competent partner whereby both of you are 'equitably' equal.....is easier to just do 50/50 down the middle.
     
  3. wow314
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    That's what I feel. My partner and I have always been 50/50. Now he thinks we should just keep what we write and split expenses. Seems like it would be hard to track everything. I have always been the one doing all the paperwork and he has been the better seller. So now I get punished for spending time hiring employees and doing all the bullshit around the office.
     
  4. eg6060
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    Was in your exact same situation wow314. Ended up splitting up the partnership and friendship. Much better off now!!
     
  5. insurance1822
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    Well I will be clear that the ones selling & bringing in the business are more valuable. I told my partner I can pay somebody 30k per year to do the "bullcrap" instead of splitting all the revenues (current & future.)

    We made an arrangement that he must bring in a relative % of new business....or take a haircut relative to what he wasn't bringing in.

    Then...the numbers took care of it & he put up. Sitting around & doing the office work isn't worth much buddy. Selling is what makes the big dough. Generate business or you really aren't worth 50%

    again...you could pay somebody crap money to do paperwork & admin $hit
     
  6. Arnage150
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    Partnerships are very difficult and rarely equal. Make sure you put something in writing early and be specific in the contract. Also make sure you get a buy sell agreement in place and a key man life insurance policy. I've seen countless multi million dollars companies crumble into nothing because of feuding partners or entitled widows.

    Something else to think about. What if you have a 1,000,000 book of business with a company. One partner is responsible for 75% of it and the other 25%. The one with 25% has a bunch of claims and knocks you out of a contingency check for the year. The other partners had a hugely profitable book. What do you do then?
     
  7. wow314
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    Sounds like no good answer to a partnership. Anyone else have any experiences?
     
  8. Arnage150
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    3 years in and out of the courts. Countless dollars in attorneys fees. Years shaved off my life. That is my experience.
    They don't call it corporate divorce for nothing.
    Get a specific contract and lock it up tight. Water tight. Like a frogs ass.
     
  9. TFMSINC
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    You all just made up my mind. Was considering a partnership.
     
  10. cv3
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    3 Agents - small town Iowa. We split all expenses evenly, but keep 100% of what we make. Workload is not - nor cannot - be evenly split - nor could it be evenly split. We are three different personalities - but - in 20 yrs - it is still going strong. Largest producer - makes most of the business decisions, but honestly - most tough ones are nil to occasionally. Want to spend more on advertising - it is that agents problem if no one else wants too.

    But - again - at all of us at or above 50 - life is short. Make money - go home and enjoy life... As it cant or wont be - here at work all the time.
     

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