Providing Equity to marketing partner?

[Rob Hoffman]

I am currently operating a Medicare/retirement Insurance Agency focused on helping seniors with their needs.

About a year ago I started working with a marketing company. It has gone mostly well and I have been able to grow through initatives with them and other marketing I am doing.

I was able to 2x my BoB (about 100 clients last year to about 250, doing 12-20 enrollments p/ mo.) It has come at a cost however as the monthly fees for the marketing are somewhat high. I am re-investing most of what I make and so I approached this company looking for a way to lower my personal costs.

The options they presented were either doing more business with them to get a lower price (which isn't feasible as I would need to hire a 2nd agent - not there yet but soon I imagine) or create a more "formal partnership" (their words.)

While the services they provide for me are mostly very and have allowed me to grow, I am hesitant to let someone else put their hands in my pie I am wondering if anyone has any experience allowing other people/companies to become partners with equity.

I am not sure what that could look like and am just looking for any advice on how to proceed.

Thanks, Rob

 

[marindependent]

I am hesitant to let someone else put their hands in my pie

I would proceed with caution [and the advice of an attorney if you are seriously considering this.]

You are doing the right thing to begin with- Ask Folks for their experience.

 

[Josh]

Have you checked to see if what you're asking about is legal in your state? Might be an easy way out of a difficult situation if you can explain to them that it simply isn't possible (commission sharing).

It sounds like you've managed to find a successful dynamic with them; I'd be nervous about changing the terms.