Joint Vendor Opportunity For Agent Looking to Grow

[NY Investor]

Ok, so if you don't get a license, fee splitting is illegal. Are you looking for an agent to risk their license to do business with you? If not that, what? So you are getting $20/lead now (which means, you get paid even if it doesn't sell) and you'd like that to grow into what? $50/lead? Lifetime residuals? Again, commission splitting is illegal in most states (maybe all?)

I think one of the great things about this forum is, pretty much no matter what your offer is, you can probably find someone willing to try just about anything. But what exactly is that offer? Do you want a percentage of the action forever? What is it you are looking for?

I will either buy an agency and share in the revenue from the business or find an agent on here who wants to grow an agency.

One of the other great things about this forum is people make assumptions without speaking to someone. Why would I ever consider asking someone to risk their license? I appreciate your input and clearly this is something you are not interested in.

Thanks for all the private messages and I plan to try and respond to everyone in the next 24 hours if possible.

 

[Josh]

I will either buy an agency and share in the revenue from the business or find an agent on here who wants to grow an agency.

One of the other great things about this forum is people make assumptions without speaking to someone. Why would I ever consider asking someone to risk their license? I appreciate your input and clearly this is something you are not interested in.

I'm not making any assumptions, you are however talking out of the proverbial "both sides of the mouth". It looked like you said earlier you were not interested in getting licensed, but you would like to share revenue. Those are your words, not mine.

One of the reasons you would make an offer that would make someone have exposure on their license, is simple: if you aren't licensed, you may not know the laws regarding revenue sharing and fee splitting. I wouldn't expect a non-licensed party to be aware of that, but I do think it is important for your venture to understand what the rules on fee splitting are.

Good luck!

 

[DHK]

There is ONE way around it: form an LLC. Become a member of the LLC with another licensed member. Commissions are paid to the LLC for sharing, yet a non-licensed person can have a share in that revenue. It's done with CPAs and Attorneys all the time.

The real question becomes: what does the non-licensed person bring to the table?

Yes, I'm seeing that you want to bring in leads, etc. However, by NOT having a license, you may not be familiar with all the various regulatory restrictions and requirements. ESPECIALLY if you're in New York (which I'm assuming based on your screen name). New York has the toughest regulatory environment in the United States for all financial services - including insurance.

It's only about a week's study and a few hundred dollars to get a license.

 

[NY Investor]

nd it: form an LLC. Become a member of the LLC with another licensed member. Commissions are paid to the LLC for sharing, yet a non-licensed person can have a share in that revenue. It's done with CPAs and Attorneys all the time.

Thanks for the insight - very helpful.

 

[scagnt83]

There is ONE way around it.

Exactly. That is the most common method. Others include helping to finance the business and getting paid on that end. Lots of legal ways to go about stuff like that.

 

[Mrmoose]

Ok, so if you don't get a license, fee splitting is illegal.

Wouldn't it be possible to start an agency and have non licensed equity owners?

 

[Mrmoose]

There is ONE way around it: form an LLC. Become a member of the LLC with another licensed member. Commissions are paid to the LLC for sharing, yet a non-licensed person can have a share in that revenue. It's done with CPAs and Attorneys all the time.

Yeah this is what I meant. Sounds like DHK has experience in this sort of thing

 

[DHK]

I have been exposed to the concept but I have not done it.

Nor am I open to it.