Should I become an employee? Any advice is appreciated.

[jstsa42]

Hi, I am an independent agent new to the insurance business and working for a GA that is able to sell BX and extend that right to me. I was originally brought on with the idea that I would be guaranteed leads for a reduced comission, but that I would have as many fresh exclusive leads as I would like.

In my first week in the business I sold 12 BX policies. The second week I hit 7 and the third week hit 8. However, in the last few weeks the nature of the GA's agreement with me seems to have changed.

Once I showed him how easy this is, he has decided to get "employees" under him and cut out any and all fresh leads to me. I now only receive leads that are 1-5 days old, and not as many as I would like, which is titlay against our agreement. That said, I have still been able to hit 5 -7 policies a week in my sleep.

However, today I was made aware that there will no longer be a 1099 agent possibility with this company as it will be more beneficial to them to go with just employees that make very little, but are able to write 7-8 apps a week. They would like me to become one of those employees.

I am new, but I am not convinced that this is the right way to go, as Employees make less than $45,000 a year, killing themsleves for this GA.

I can do this job. I had 33 BX sales in my first full month in the business, but now the rug has been pulled out from under me and I have been pushed into an employee only situation.

Please let me know what advice you might have for me on my present situation, if there are any other GA's who would like me under their umbrella, or any other advice that you may have for me so that I can continue my new career in what seems to be a great business.

Thanks,

 

[Newby]

It looks to me like you don't need the GA if he is changing your game plan. Just get your own direct contract with BX as well as the other companies and buy your own leads. If you are getting the full commission it will pay for the lead cost.

You don't want to be limited to BX anyway. They are not usually the best deal out there.

Hi, I am an independent agent new to the insurance business and working for a GA that is able to sell BX and extend that right to me. I was originally brought on with the idea that I would be guaranteed leads for a reduced comission, but that I would have as many fresh exclusive leads as I would like.

In my first week in the business I sold 12 BX policies. The second week I hit 7 and the third week hit 8. However, in the last few weeks the nature of the GA's agreement with me seems to have changed.

Once I showed him how easy this is, he has decided to get "employees" under him and cut out any and all fresh leads to me. I now only receive leads that are 1-5 days old, and not as many as I would like, which is titlay against our agreement. That said, I have still been able to hit 5 -7 policies a week in my sleep.

However, today I was made aware that there will no longer be a 1099 agent possibility with this company as it will be more beneficial to them to go with just employees that make very little, but are able to write 7-8 apps a week. They would like me to become one of those employees.

I am new, but I am not convinced that this is the right way to go, as Employees make less than $45,000 a year, killing themsleves for this GA.

I can do this job. I had 33 BX sales in my first full month in the business, but now the rug has been pulled out from under me and I have been pushed into an employee only situation.

Please let me know what advice you might have for me on my present situation, if there are any other GA's who would like me under their umbrella, or any other advice that you may have for me so that I can continue my new career in what seems to be a great business.

Thanks,

 

[mswebb06]

So, what would the benefits be of becoming a full time employee with this individual? I guess outside of this GA taking out your taxes on all paychecks, then no benefits would exist.

I mean is this guy providing you with paid health insurance or anything? I do not see any reason for staying with him. Contact Health Choice One or IHIAA on this board (Healthagent).

 

[jstsa42]

I guess that is just it, I can sell, but I am not exactly sure how to get my own direct contact with all the companies and get on as an Agent with them.

1)Are there fees involved, or is it as simple as calling them and getting on with them?

2)Should I incorporate or are they o.k. with 1099?

3)I have my ENO and I have been appointed with some Life companies, as well as Human and Aetna for Individual health, but I am not sure if that is through the GA or not? If it is how do I get the compnaies to make it so the check comes to me instead of the GA? Or will I have to apply for a new agent number?

Thanks for your help!
- - - - - - - - - - - - - - - - - -
No there are no employee benefits and they are not supplying a computer, printer, fax, ect. I don't even really get office supplies, but there is an office I can go to if I want to work out of a cube. The closest Manager support is in Jacksonville and I am in Orlando, so typically if I have questions I have to track people down over the phone to get them answered.

The more I type and really look at this, I am not sure that it makes sense to not just go out and try this on my own. That said, I am very green about this business even though I am capable of doing the sales aspect of it. See my other post and you'll see I am not really sure how to get things started for myself or how difficult that might be to get on as an independant aget with other companies so I can write for them.

 

[stormtracker]

Not giving legal advice, but the IRS does not look too favorably on converting back and forth from 1099 to employee. I realize that companies do this all the time, but it may be in violation never the less.

 

[xrac]

Keep the 1099 status for now. Figure out the companies you want to sell for and talk to them. Find out what your status is as far as any current appointments you have with companies. You can find a good FMO or GA and sign on with them. Just be sure they will give you and unconditional release if you decide to make changes later.

 

[jstsa42]

I checked out Career Builder and a couple of other jobs sites and I wasn't able to finnd any companies looking for good people. Is there a better place to be looking?

Thanks
Mike

 

[nomadone]

What is BX? tia

 

[xrac]

What is BX? tia

It could be Blackstone Group or Builders Exchange but I believe it to be Blue Cross (BX)! Don't feel bad it took me a little while to figure it too.

 

[thereaper]

Hi, I am an independent agent new to the insurance business and working for a GA that is able to sell BX and extend that right to me. I was originally brought on with the idea that I would be guaranteed leads for a reduced comission, but that I would have as many fresh exclusive leads as I would like.

In my first week in the business I sold 12 BX policies. The second week I hit 7 and the third week hit 8. However, in the last few weeks the nature of the GA's agreement with me seems to have changed.

Once I showed him how easy this is, he has decided to get "employees" under him and cut out any and all fresh leads to me. I now only receive leads that are 1-5 days old, and not as many as I would like, which is titlay against our agreement. That said, I have still been able to hit 5 -7 policies a week in my sleep.

However, today I was made aware that there will no longer be a 1099 agent possibility with this company as it will be more beneficial to them to go with just employees that make very little, but are able to write 7-8 apps a week. They would like me to become one of those employees.

I am new, but I am not convinced that this is the right way to go, as Employees make less than $45,000 a year, killing themsleves for this GA.

I can do this job. I had 33 BX sales in my first full month in the business, but now the rug has been pulled out from under me and I have been pushed into an employee only situation.

Please let me know what advice you might have for me on my present situation, if there are any other GA's who would like me under their umbrella, or any other advice that you may have for me so that I can continue my new career in what seems to be a great business.

Thanks,

Well one benefit from becoming an employee you HAVE to fall under his E&O the carrier will require this of him. I am an employee with a BC MGA and never have had to pay my own E&O. Is this guy a jerk? It's less hassle for him accounting wise to leave you a contracted agent. But then again your payroll taxes are matched. If he has group health in his business and makes you an employee he has to offer it to you here in Florida and pay 50% of your premium BC, UHC and Humana all require this. Sounds to me like there may be something else to this just doesn't make sense.