Instead of possibly high jacking another thread by a similar name I thought I would start a new one.
While I appreciate the transparency of Hoosier feeling it necessary to call out other IMO’s by letting everyone know the contract levels they’re entitled too regardless of proven production; so as not to be fooled by IMO’s making a living on the backs of their agents.
That transparency should go all the way up the line revealing every level up the chain. While I believe that some IMO’s and MGA’s may very well make a living on the backs of their agent keeping their agent contracts artificially low to bank as much money as possible I have yet to find them here on this forum.
In fact I find just the opposite. They give as high a contract as they can without putting themselves at financial risk. That risk being rolled-up chargebacks on agents that are advanced. Let’s face it most new FE agents are advanced and unless an IMO/MGA has at least a 20 point spread over his/her downline they’re liable to be out of business within a year.
The new street contract from RNA that went from 115% to 120% by removing the production requirement is fine, great even. They obviously want to increase their FE business. As well they should! I find their FE plan a great product and a great company to work with, with competitive rates.
The problem is they didn’t increase the comp level and renewal commissions all the way up the chain leveling the playing field. So those quality IMO’s/MGA’s that do have their agent’s best interest at heart now just lost the ability to promote mangers in their downline who intern can build an agency themselves. Those IMO’s/MGA’s not reaching the current production requirements to have a higher contract are now at financial risk.
So that means offering RNA 120 contracts to any agent with a pulse or “…fog a mirror…”as previous mentioned and being promoted as the new street is not a good business decision. At the end of day why would any IMO/MGA offer RNA to their field force that cannot maintain a 20 point spread putting themselves at financial risk? Hence, RNA loses more business then it will ever gain.
I see this debacle going one of two ways: RNA increases the IMO/MGA of those under a higher contract to higher contract with equal renewal commission or they’ll reinstate production requirements to warrant a 120 contract. I’m betting on the latter…which makes it a nasty conversation to have roll back a commission on an agent field force.
While I appreciate the transparency of Hoosier feeling it necessary to call out other IMO’s by letting everyone know the contract levels they’re entitled too regardless of proven production; so as not to be fooled by IMO’s making a living on the backs of their agents.
That transparency should go all the way up the line revealing every level up the chain. While I believe that some IMO’s and MGA’s may very well make a living on the backs of their agent keeping their agent contracts artificially low to bank as much money as possible I have yet to find them here on this forum.
In fact I find just the opposite. They give as high a contract as they can without putting themselves at financial risk. That risk being rolled-up chargebacks on agents that are advanced. Let’s face it most new FE agents are advanced and unless an IMO/MGA has at least a 20 point spread over his/her downline they’re liable to be out of business within a year.
The new street contract from RNA that went from 115% to 120% by removing the production requirement is fine, great even. They obviously want to increase their FE business. As well they should! I find their FE plan a great product and a great company to work with, with competitive rates.
The problem is they didn’t increase the comp level and renewal commissions all the way up the chain leveling the playing field. So those quality IMO’s/MGA’s that do have their agent’s best interest at heart now just lost the ability to promote mangers in their downline who intern can build an agency themselves. Those IMO’s/MGA’s not reaching the current production requirements to have a higher contract are now at financial risk.
So that means offering RNA 120 contracts to any agent with a pulse or “…fog a mirror…”as previous mentioned and being promoted as the new street is not a good business decision. At the end of day why would any IMO/MGA offer RNA to their field force that cannot maintain a 20 point spread putting themselves at financial risk? Hence, RNA loses more business then it will ever gain.
I see this debacle going one of two ways: RNA increases the IMO/MGA of those under a higher contract to higher contract with equal renewal commission or they’ll reinstate production requirements to warrant a 120 contract. I’m betting on the latter…which makes it a nasty conversation to have roll back a commission on an agent field force.
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