Will Your Producers Become Your Competing Agents?

Oct 6, 2011

  1. pbbaseball
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    my few that write p&c rarely leave to compete, but FE producers do it a fair bit. delicate balance between paying them enough to stay with you, but not so much that you don't make any money for all the training, phone calls, etc
     
  2. BNTRS
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    Ummm, do you guys know nothing about life insurance and 409(a)'s?

    Problem solved.
     
    BNTRS, Oct 11, 2011
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  3. Sales71
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    I guess some producers will leave and go on there own one day. Hopefully they made u lots of money while there there and now wish them good luck.
     
    Sales71, Oct 11, 2011
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  4. BADTROUT
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    I tell them that's the goal! They will need carrier access and they can get that from me when they are ready. When they do leave they get a bor letter on their clients I move them in our management system to a branch and split the commission either 70/80/90 new and renewal depending on the carrier (some I have gone static). Its a win win... they get paid more, they assume 100% of their overhead, they get pride of being an agency owner and I make between 10 and 30 percent off the top for really doing squat from the point on they take over. I'd rather get paid an average of 20% for doing nothing then getting paid 100% but bearing all of the expense. We get them a sub code in their name so really we are still in 100% control, with no real downside.
     
  5. somarco
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    somarco GA Medicare Expert

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    I presume this kind of transaction eliminates or minimizes charge back roll ups.
     
    somarco, Mar 11, 2019
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  6. BADTROUT
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    It's ALL relative. If we pay 80/20, which is on par with most aggregators give or take on commission in, its the same on commission out. We all have skin in the game, but we have minimized our risk on the chargeback. We eliminate potential litigation/enforcement and policing of anti-piracy or non-competes.
     
  7. NCAgent828
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    NCAgent828 Super Genius

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    I’m more curious if anyone has continued their own agency in a “franchise” type agency with a producer. Either in a new market or the other side of town and retain some ownership of the new agency and collaborate. For example, Keller Williams has its big KW name but under that are teams of agents and individuals?

    If so, would love to see how this has worked?
     
  8. shawnmwalker
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    Two hard things to do in this business.
    1. Find good talent.
    2. Keep good talent.

    The Right comp structure can help that occur. But if you find killer talent, he will know that, and leave you one day, maybe even compete against you. He will make you a lot of money in the interim. Best thing is to find a way to keep that guy around as long as possible. Rain Makers are rare folks. If you are lucky enough to get one. Try your hardest to keep him around.
     
    Last edited: Mar 11, 2019
  9. BADTROUT
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    Hey Shawn... uh... you looking for work these days? I could use a guy like you!
     
  10. MedicareMillionair
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    MedicareMillionair Guru

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    Most will not. That is unless you have an excellent sales system and they can duplicate it easily. It is said that you can let somebody see behind the curtains and they still won't be able to duplicate your system.

    On top of that, they say of course there is a 90% fall out rate of new insurance agents within the first year or two. When an agent leaves and is left to their own devices there probably is an even greater chance of failure.

    These and other factors lead to there not being a whole lot of agents that will end up competing with you.
     
    Last edited: Mar 11, 2019
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