$10,000 Budget Vs $500 Budget

[Thedude]

The problem I see with the Non-Compete agreement is that some of these insurance agencies/IMO's, "now I'm not going to mention any names", but some of them say that if you actually leave the agency, you can't even write that type of business for a year...

a year is a short amount of time compared to most industries.

I had a friend get told to sign a 10 year non compete (software security) and he told them to F off because he was a hot product. 2-5 year non competes are pretty common which is what he signed. They don't hold up unless they provide a service with the non compete....so if you contract and they bring the non compete later on then they have to bring something new to the table.

To my understanding this can save you in non competes...

*this is not financial advice*
*i am not a lawyer*


But yes don't sign that type of non compete if you don't have to

 

[NSRH]

Even if the new agent had to sign a non compete agreement?

Well yes, I think its unethical to go and replace business once you leave a captive agency on leads you didnt pay for.

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The problem I see with the Non-Compete agreement is that some of these insurance agencies/IMO's, "now I'm not going to mention any names", but some of them say that if you actually leave the agency, you can't even write that type of business for a year...

The courts have always ruled against noncompetes that overstep. A company cannot stop an individual from making a living.

However, the courts have always agreed that you cannot leave a company and poach their customers, if a noncompete was signed.

 

[Agentguy5]

Well yes, I think its unethical to go and replace business once you leave a captive agency on leads you didnt pay for.

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The courts have always ruled against noncompetes that overstep. A company cannot stop an individual from making a living.

However, the courts have always agreed that you cannot leave a company and poach their customers, if a non compete was signed.

The problem I have, is with a non compete that basically says "if the agent leaves, he can't do the same business elsewhere"...

In the Final Expense world, that's just hostage taking unethical horse#@%

I mentioned nothing about replacing business...

Ramiz, you are seeing the non compete from a Marketer's point of view while I am viewing it from an agents perspective!

 

[NSRH]

The problem I have, is with a non compete that basically says "if the agent leaves, he can't do the same business elsewhere"...

In the Final Expense world, that's just hostage taking unethical horse#@%

I mentioned nothing about replacing business...

Ramiz, you are seeing the non compete from a Marketer's point of view while I am viewing it from an agents perspective!

Well I think we agree then. An agent should be very mindful when signing this kind of agreement. However, a noncompete cannot prohibit someone from making a livelihood, so even if it says "you cant do the same business elsewhere", it likely will not stand in court. Those agreements have been overturned time and time again.

My only point is, if there is a noncompete or not, going back to customers that were sold, when the agent did not buy the lead is unethical. I think we agree on that too.

 

[VolAgent]

The problem I have, is with a non compete that basically says "if the agent leaves, he can't do the same business elsewhere"...

In the Final Expense world, that's just hostage taking unethical horse#@%

I mentioned nothing about replacing business...

Ramiz, you are seeing the non compete from a Marketer's point of view while I am viewing it from an agents perspective!

There is a non-compete and there is a non-solicit. A non-compete without compensation is wrong and often invalid. A non-solicit will hold up all day long and twice on Sundays.

Most non-competes aren't worth the paper they are written on. It doesn't matter though, the mere threat of being dragged into court will stop many companies from associating with someone who has signed a non-compete.

I'm not a lawyer nor did I sleep at a Holiday Inn last night.

 

[rousemark]

Well I think we agree then. An agent should be very mindful when signing this kind of agreement. However, a noncompete cannot prohibit someone from making a livelihood, so even if it says "you cant do the same business elsewhere", it likely will not stand in court. Those agreements have been overturned time and time again.

My only point is, if there is a noncompete or not, going back to customers that were sold, when the agent did not buy the lead is unethical. I think we agree on that too.

As long as you are not replacing the original business, I disagree. The lead was provided, you wrote the business with the company... They got what they paid for. Now, after you leave, you should be prevented from ever writing that person additional insurance?.. Don't think so...

 

[Thedude]

As long as you are not replacing the original business, I disagree. The lead was provided, you wrote the business with the company... They got what they paid for. Now, after you leave, you should be prevented from ever writing that person additional insurance?.. Don't think so...

Don't be that guy .... if you don't take the risk of buying your own leads then don't expect to run around and do that stuff. They aren't "your" leads. If an agent signs up for its not my problem.

How did they meet the client originally ?

 

[Todd King]

Don't be that guy .... if you don't take the risk of buying your own leads then don't expect to run around and do that stuff. They aren't "your" leads. If an agent signs up for its not my problem.

How did they meet the client originally ?

So you're saying that, after you've left an agency that supplied leads to you, you would always refer those particular clients back to that agency forever? Even if you didn't touch the old business you wouldn't write them up on something else they needed? Just walk away from it? BS!

 

[VolAgent]

So you're saying that, after you've left an agency that supplied leads to you, you would always refer those particular clients back to that agency forever? Even if you didn't touch the old business you wouldn't write them up on something else they needed? Just walk away from it? BS!

And that is exactly why non-solicits exist and are legal. No one is denying you a livelihood. They are just saying you can't poach their clients.

Ever is a long time, but 2 years is pretty reasonable.

 

[Thedude]

So you're saying that, after you've left an agency that supplied leads to you, you would always refer those particular clients back to that agency forever? Even if you didn't touch the old business you wouldn't write them up on something else they needed? Just walk away from it? BS!

I guess I'm loyal but if I didn't pay for lead that got me in front of the client I'd only write business that person who contracted me would make money on.

But if I'm being honest I've never had that situation and I bet it's more of an agent seeking out old clients than them contacting you.