Question About Captive Agents

[718_Pete_813]

I'm a new agent and a local agency is hiring for captive agents. They told me there's no salary, but I thought captive agents are paid salary plus a small commission. Am I wrong?

The only good thing I like about this agency so far is that they provide free exclusive leads, don't have to pay to get appointed, and no E&O insurance on my end. 17% commission 1st year, 8% 2nd, 5% 3rd, and 3% 4th & beyond. Is this a decent deal they're offering?

Thanks in advance for your feedback.

 

[Mark]

I'm a new agent and a local agency is hiring for captive agents. They told me there's no salary, but I thought captive agents are paid salary plus a small commission. Am I wrong?

The only good thing I like about this agency so far is that they provide free exclusive leads, don't have to pay to get appointed, and no E&O insurance on my end. 17% commission 1st year, 8% 2nd, 5% 3rd, and 3% 4th & beyond. Is this a decent deal they're offering?

Thanks in advance for your feedback.

You could not stay in business with those numbers.
If you sell $1000 a week in premium you would make what? $170

How much would you have to do in premium to stay alive?

This is a really bad deal.

 

[souldeux]

Hell, Mark, I pay my own E&O, buy my own leads and get 17-20% FYC and I float okay. That's on health, of course.

 

[moonlightandmargaritas]

I'm a new agent and a local agency is hiring for captive agents. They told me there's no salary, but I thought captive agents are paid salary plus a small commission. Am I wrong?

Smells like a BCBS FL agency?

Here's the deal: they'll take anybody who has a license and can fog a mirror. They don't have much to lose, there's really no commitment on their part. You write some business, eventually starve and leave, and they keep the business.

If you're looking for a "salary" - you're in the wrong business. The people that are successful have an "owner" mentality, not an "employee" mentality.

The only good thing I like about this agency so far is that they provide free exclusive leads, don't have to pay to get appointed, and no E&O insurance on my end.

There are no "free" leads.

In this scenario, you end up paying three times more for the "free" leads (in the form of reduced compensation) than if you bought them yourself. In addition, you have no control. What do you do when they decide there won't be any new leads this week..or month?

 

[718_Pete_813]

Mark- What would you suggest I do? I'm new and have only worked in a call center selling Medicare Advantage plans. I've been reading a lot on this forum and I thought in my situation with no experience in individual health, it's best to get with an agency as a captive agent.


Nick- I'm glad you're doing well, gives me a positive outlook. It sounds like you're almost in the same situation as I am except you're not confused like myself. =)


moonlightandmargaritas- It's not BCBSF, I interviewed with one agency and it was by far worst. I only get 11% commission, have to pay my own E&O insurance, and pay for leads! Are you in FL?

 

[Chazm]

Why not get with a broker thats not captive?

What part of florida are you in?

 

[718_Pete_813]

Why not get with a broker thats not captive?

What part of florida are you in?

Tampa, please PM me with any info that you have. Thank you.
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Chazm- Thank you for your PM and your advice, I couldn't respond to you because I don't have 20 posts yet. If you PM me your e-mail I can respond, thanks again.

 

[hera196]

718_Pete_813 - I just found this forum, I see the discussion was from years ago but thought you still might be able to help me. I am a new agent in the very same position you were years ago and was wondering how you ended up doing? I am so very confused as to what I should be doing and what's best to look for out of compensation. Everyone seems to be offering different things. I am in the Tampa area as well and ready to start training with one firm to learn their products and they are trying to get me to be a captive agent, no salary, and very small commission... of course marketing help, leads, etc. Doing a lot of looking around online, this is now seeming like a bad idea. I haven't signed or started yet and am looking for some guidance. Any help would be appreciated.

 

[pcbinsurance]

I believe Pete is probably no longer in the business. He last posted here over 3 years ago.
That said, many good agents are in Florida and would be happy to give you some tips and/or assistance.

 

[gittarpikk]

This may be right forum for this question

Captive company....but prior....

Arranged was a verbal agreement that as long as I did not write their leads (usually 12 /week) with my appointments...and my production was at level its supposed to be at...didnt matter what I did....so toungue in cheek, I could keep my old appointments.

Now I'm told....

No more leads (at office level) are to be ordered for me coming into company....so in essence, I am only getting leads taken from rest of office (6-7 agents).....BUT if I would cancel my other appointments, the office would get approx $2K more per month extra mailed leads (as long as my production---and theirs) was where it needs to be.

The extra leads though would not come to me alone....they go to the office ...as a whole.(divided between now 7-8 agents)

as agreed, and really only ethical thing to do , was never sell their lead with my appointments...only theirs...and is /was my intent.

To effect other appointments cancellations I would have to write a letter to captive company to cancel them...(captive co would issue the letters to companies...to state etc.

Two questions...

1) What is stance of other companies that have the appointments cancelled.....?

Scenerio....say the captive co does not work out... will I be able to 'return' to my old contracts/appointments ...ie reappointments...without penalty

note ...very little , if any business was written in past as I was about to open my own agency....but felt the need to get back in the trenches for a while before undertaking this huge task...possibly failing.

2)How would I know that they actually did what they stated they would do?

note ...Being I never directly see the extra leads...or know the number and cost of them...nor actual dollar spent....I could only hope to see a >possible< increase of leads to the whole office/agents.


. so IMO if they never spent the extra $2k/month, I would never know if I were told in the future... geez , we had a bad month of lead returns... and (now same 12/week) is all we have.

I dunno... seems a bit fishy to me ....and more of a 'clouded' attempt to just get me to cancel these other appointments..so I wanted some input from agents on here that may have been through something like this....

I have a choice... do nothing and 'perhaps' get the alluded 12 fresh leads /week...with a few other old leads.....or .... cancel and get the 'possible' others..

Granted, a lot on these forums do not appreciate the captivity...but in reality I need to 'wade back in' rather than dive in from a spring board..

I really appreciate the comments..