So I want to start recruiting....

Jun 17, 2019

  1. benneaf
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    benneaf Super Genius

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    So I want to start recruiting, but I'm not getting in any hurry. I've been in the business 6.5 yrs and focused on Medicare for 2.5. Right now my contracts are spread all around. I've got some with National Contracting Center (NCC) out of Knoxville. I've got some with United Health Benefits (UHB). I've got final expense contracts with David Duford (I'll probably leave them alone). I've got a few other contracts that are with Christ Westfall which goes up through SMS (the Omaha bunch).

    So I've got a handful of questions (and I'll have more as I learn more).
    1. I've created an LLC here in TN. Is that the best format or should I look at an S Corp?
    2. I would think there might be an advantage to getting all my contracts lined up with the same FMO. Is that accurate or does it matter at all?
    3. I understand that I'll have to change all my contracts from individual agent contracts to agency contracts even if I stay with the uplines I now have. Is that correct?
    4. I attended the recent Med Sup conference down in Atlanta and got an idea from one of the speakers there who spoke on succession planning. What I don't know is how much my idea depends on my uplines. So here's the idea. I've got this LLC so my commissions go to the LLC. If I get hit by the big truck and go sell Medicare supplements in the sky my LLC keeps getting paid. So I can use my LLC to extend the same benefit to other agents.

    I know that would require assignment and I would put in a contract that I would release upon request (I've been burnt too and want to protect my trail, so I'm leery of assigning commission to anyone who won't release and I will put it in writing). Question...would giving a release depend in part on my upline or as the recruiting agent can I grant the release?

    Let me give an example of scenario. A local agent I know is in their 70's and still dabbling at producing some because her upline is telling her that some of the big carriers require a minimum level of production to keep the trail of commissions coming in. IF they assigned those commissions to me...1. Would the override trail transfer to me? 2. Would their trail stay "solvent" if they did finally retire (that is would the Humana's and UHC's of the world still pay the LLC (my LLC) their commission? That is would the LLC's production keep their trail safe? 3. Since the LLC is paying and not the insurance company would they be required to keep their license and E & O in place (OR could I required that?)

    That's a whole lot of questions so I'll stop for a bit and listen/read.

    Thank you in advance for your input
     
    benneaf, Jun 17, 2019
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  2. Baseball7
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    Baseball7 Guru

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    Sounds like a logistical mess to have all those eggs in different baskets and duplicate that.
     
  3. Newby
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    Newby Guru

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    It mainly depends on what you are going to use your Upline for. If you are going to use the contracting system (usually SuranceBay) and lead programs from your Upline then yes you will likely be better off with one. Or at least one per product category.

    If you are going to do your own SuranceBay and contracting department and have your own training and lead systems (basically just use your Upline for their leverage with higher contracts) then you won’t be as tied to one Upline and can shop different companies separately.

    As far as getting your down line agents to assign commissions to your agency, not a great idea. First that’s the number #1 way agencies screw over their agents. I know that’s not your goal but it’s a huge red flag for any agent under you to be concerned with. Plus it would require you to have a payroll department as you would be paying the agents not company direct. Better off having each agent form their own LLC if that is something they are concerned with.
     
    Newby, Jun 17, 2019
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  4. goillini52
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    goillini52 MAGA...Eat More Bacon & BUILD THAT WALL!!!

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    Maybe my memory's failing me, but weren't you on here struggling a few months ago? And now you're going to recruit? :confused:

    You must've got it fixed. :yes:
     
  5. Rob Lion
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    Rob Lion Guru

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    What do you have to offer? Do you have a system that is generating you a 6 figure income that you can teach someone to replicate ? If not, then don't even bother we have enough broke agents teaching other agents how to make a income in this industry.
     
    Rob Lion, Jun 17, 2019
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  6. benneaf
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    benneaf Super Genius

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    I agree
     
    benneaf, Jun 18, 2019
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  7. benneaf
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    benneaf Super Genius

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    [QUOTE="goillini52, post: 1302643, member: 46773"

    You must've got it fixed. :yes:[/QUOTE]

    I was struggling and have watched, listened, read, observed, etc. My business is now on pace to double last year's. I also had several large ($1,000,000) whole life policies last year, so it's not all renewals driving the income, its new sales.
     
    benneaf, Jun 18, 2019
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  8. benneaf
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    benneaf Super Genius

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    I'm definitely not broke. I dipped my toe into FE earlier this year and failed miserably, but learned a lot. I'm not rushing into recruiting either. Just aligning my contracts might be a 6 month process if I can't get releases (and NCC in Knoxville has held me up before). In the meantime I want to learn more about what all is involved in being an up line AND I want to deliver more than I have experienced myself. Just like anybody I encounter new agents and struggling agents on a regular basis. I try my best to give them the lay of the land and what all the different routes are in this industry (captive, independent, MAPD, Annuities, FE, etc). I also share my struggles of NOT focusing my business for years and how that negatively affected my paycheck. So, I do think I have some thing to offer and I do think I have those coaching/mentoring and administrative skills to build a downlink. I'm also not jumping into recruiting tomorrow. I do want to start building a foundation for it though.
     
    benneaf, Jun 18, 2019
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  9. Todd King
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    Todd King IMO/FMO Owner

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    There are good reasons to have your agents assign their commissions to you and thee are good reason NOT to do that. The best reason NOT to do it is that you will have to keep up with what everyone sells and their renewals. You'll probably have to hire someone to do that and have the software to do it. That could be very expensive.

    A good reason to do it would be that, if the agent decides to get out of the business...you own the business and can do whatever you please with the money coming in.

    Will you have control over releases? Yes, to a certain point. With some companies, the request from you would be just fine. With others it has to come from the highest source. If you are lined up correctly, they will do as you ask. We have no problems getting releases for any agent under us.

    You should also consider other things such as contracting for your agents , tools for you and your agents, etc.

    Here's the shameless plug part: We have the tools necessary to cover you and your agency. They are free to you. You can even take them with you if you decide to move your contracts away. And of course, we do release.
     
  10. Rob Lion
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    What system do you have in place that another agent can directly pick up and make a similar income to you?
     
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