Starting a Subagency

Mind you I am not trying to say having a downline is a bad thing, but you have to be ready for things like the above.

Then let me say it for you. Having a downline can indeed be a bad thing.

I had a nice override from a MA carrier. I felt it my obligation to teach agents how to sell MA plans by going to appointments with them, sell the product and have the commission go to the agent. My override was what paid for my time.

I did just this with several agents and recall one agent that completely soured me on the idea. After going out with him (and this jerk was an experienced agent who had failed in life insurance/annuities over the years) he declared he was ready to go out on his own.

So he use the mail piece I designed and started writing business. My FMO called him and offered a $50 override so he requested a release. I told him to basically drop dead and refused the request. Even though I insist on free releases this guy owed me plenty for my time.

Fast forward. My FMO lost his contract and along with my downline went under another FMO. He is the one who told me not to release even though he had never refused one himself.

A month or two later I find that this *** agent had called clients telling them that Medicare wanted them to enroll and wound up losing his appointment. He should have lost his license.

I rarely will offer contracts and when I do it's only to people I know and when I'm sure I won't get chargebacks.

BTW, this dishonest agent still occasionally posts here and gives advice. I have refrained from responding to him. Right Mickey?

Rick
 
We'd all do alot better if everyone was not contracting agents who end up selling part time or fail just for an extra few grand a yr., if they are lucky. The new agent would probably eventually thank you too.
 
Hi! I am new posting on here (I stalk it a lot though). I have been an independent for about a year, and a seasonal captive for 4 years with Medicare Advantage plans. I am debating on starting a sub-agency. I only do health insurance (medicare advantage, supplements, ACA plans, etc.) We would provide leads (through my own system), and build our team as demand increases. Aside from getting agents and getting them sales, what are other considerations? Getting subagent contracts with the agencies I work with is not an issue, just trying to figure out if there is anything I haven't considered. Thanks!

Here are a few things that I would want to ask any agent that is considering opening a subagency and putting even just one downline under them. What are your goals for this subagency, do you have a business plan?

Are you prepared for chargebacks? You may want to be selective when it comes to picking the agent that is going to be in your downline. Do some background checks, get their driver's license, etc. While there is a lot of negativity in this post about having your subagency, not all is bad.

However, if you do have the idea of sitting back and drinking a nice cold beer on the beach. That is surely not going to happen. On the other hand, if you really enjoy helping other agents and find a passion in it that is what will make you strive.

Yes, there may be a few bad agents, but there are also a few superstars as well. We do not know what skills and experience you have, but you will definitely need managerial skills. If your agents are producing low find out why, help them, train them, answer their questions, if you don't know the answer, find it.

Are you going to make them LOA's? Or will commissions be paid directly to them? Are you going to freely give releases? Or will they have to wait 3-6 months before you will? What are your work hours going to be?

Are you going to have a website? An IT guy to help you? Or do it youself? Are you going to be recruiting locally or globally? I would definitely say start small until you are comfortable with training and creating high producing agents.
 
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Save yourself the hassle. If you're able to make a living selling the products yourself, why give yourself the headache of babysitting a bunch of brain dead people that will need their hands held every time they need to piss and then jump ship to the first person to offer 0.50% better commission than you? It sounds great- sit back, let others make sales and make money while strolling the beaches...but, it's a fantasy. You will turn into a babysitter and be shocked at how people are able to produce so little, yet take up so much of your time. Save yourself the headache...

Amen brother. .
 
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