We need a Baltimore Life contract for Tele-Sales. . .

[suranceman]

Not all IMOs are treated or cared for equally. The more business you do, the more the company will do for you.

Exactly and that's how every business operates. Even IMO's do the same thing. Most IMO's treat agents individually based on their value. An IMO would be dumb to treat them all fairly in the name of equality. Screw "fairness". What's fair is your ability to drive up your market value which gives you more influence.

If you want equality of outcome, go join some leftist progressive group.

There is no reason why a carrier should't give special treatment to someone who does massive amounts of production. It's their right to, and news flash Todd, they do! Sorry you can't handle it buddy.

 

[rousemark]

This where you are wrong.

It's their company, and they do what they want despite what they tell you. .

partners....

That is true but the company that says one thing and does another is looking for problems retaining a good relationship with their producers. I used to wonder why a company would care what an IMO offered their down-line.. As someone said, it is not coming out of the company's pockets. However, afetr thinking about, it is kind of like companies that have franchisees. They
control very much what the franchisee can do because they want him to succeed, If an IMO starts shaving their margin too closely they are putting their business in danger.. If they go belly up neither they nor the company benefits. Also, them regulating what can be paid to down-lines, helps them protect their IMOs from another proselytizing their agents by offering them levels that that are so high that most IMOs cannot maintain. their viability. it ends up being a downward spiral that eventually destroys the company.

I watched this happen many times in retail and the insurance industry is not immune to the rules of good business practices.

 

[Todd King]

I am so glad that you guys deal with this stuff on a daily basis and are here to educate me since I actually lay in bed all day and do nothing. Not even sure how I got my insurance license because I'm just so ignorant of how all of this works.

Look, I get that there are exceptions, but none of you guys who are trying to talk about something that you don't deal with get those exceptions. Unless you guys are a lot bigger than you portray, you didn't get any of those exceptions.

 

[Rirwin]

partners....

That is true but the company that says one thing and does another is looking for problems retaining a good relationship with their producers. I used to wonder why a company would care what an IMO offered their down-line.. As someone said, it is not coming out of the company's pockets. However, afetr thinking about, it is kind of like companies that have franchisees. They
control very much what the franchisee can do because they want him to succeed, If an IMO starts shaving their margin too closely they are putting their business in danger.. If they go belly up neither they nor the company benefits. Also, them regulating what can be paid to down-lines, helps them protect their IMOs from another proselytizing their agents by offering them levels that that are so high that most IMOs cannot maintain. their viability. it ends up being a downward spiral that eventually destroys the company.

I watched this happen many times in retail and the insurance industry is not immune to the rules of good business practices.

I've never looked at it from that perspective and it actually makes a lot of sense.

There is another side though, it's like a product that is being sold to retailers. The manufacturer tells them what the retail price is, but wal mart never follows it bc the amount of leverage they have with volume.

For the small shops, they have to protect the profit spread since they don't have as much volume. Wal mart can make less per sale, but make up in more volume.

 

[Rirwin]

I am so glad that you guys deal with this stuff on a daily basis and are here to educate me since I actually lay in bed all day and do nothing. Not even sure how I got my insurance license because I'm just so ignorant of how all of this works.

Look, I get that there are exceptions, but none of you guys who are trying to talk about something that you don't deal with get those exceptions. Unless you guys are a lot bigger than you portray, you didn't get any of those exceptions.

Whatever makes you sleep at night man.

By the way, I got an ocean front property in South Dakota I'd like to sell you.

 

[Todd King]

partners....

That is true but the company that says one thing and does another is looking for problems retaining a good relationship with their producers. I used to wonder why a company would care what an IMO offered their down-line.. As someone said, it is not coming out of the company's pockets. However, afetr thinking about, it is kind of like companies that have franchisees. They
control very much what the franchisee can do because they want him to succeed, If an IMO starts shaving their margin too closely they are putting their business in danger.. If they go belly up neither they nor the company benefits. Also, them regulating what can be paid to down-lines, helps them protect their IMOs from another proselytizing their agents by offering them levels that that are so high that most IMOs cannot maintain. their viability. it ends up being a downward spiral that eventually destroys the company.

I watched this happen many times in retail and the insurance industry is not immune to the rules of good business practices.

Wow! You actually get it! Thank you!

 

[Todd King]

I've never looked at it from that perspective and it actually makes a lot of sense.

There is another side though, it's like a product that is being sold to retailers. The manufacturer tells them what the retail price is, but wal mart never follows it bc the amount of leverage they have with volume.

For the small shops, they have to protect the profit spread since they don't have as much volume. Wal mart can make less per sale, but make up in more volume.

The key there is "Suggested Retail Value", with emphasis on "Suggested". It's totally different. Now, if the company that sold widgets said you WILL sell it at this price, Walmart would end up deciding against carrying widgets.

 

[rousemark]

I've never looked at it from that perspective and it actually makes a lot of sense.

There is another side though, it's like a product that is being sold to retailers. The manufacturer tells them what the retail price is, but wal mart never follows it bc the amount of leverage they have with volume.

For the small shops, they have to protect the profit spread since they don't have as much volume. Wal mart can make less per sale, but make up in more volume.

And there have been manufactures that have forced Walmart to abide by their pricing requirements.

 

[JimmyCrappedCorn]

I actually lay in bed all day and do nothing.

That thought had crossed my mind.

 

[rousemark]

I actually lay in bed all day and do nothing.

.

Yeah, when I get old like you I am going to do the same...