Question About Partnering with Other Agents

jedcowan

New Member
1
The whole Health Reform thing has opened up some interestingdoors for our brokerage. We are having multipleagents wanting to partner with us. Theseare agents that write a few health policies a year on the side. They would refer groups to us andwe would write and services the policy. What is a fair split with commissions? We are proposing 50/50. Thoughts?
 
If you're doing all the service work, at most I would go 50% FYC, and that would be an extremely generous agreement.
 
What kind of renewal would you propose, if any? This is the number I always have trouble with.

None.

If they want renewals then they can service the account. The accounting on this stuff is usually a PITA and rarely does it ever amount to anything. If they're bringing you accounts with commissions of $10k/month then that's a different consideration. You could consider having a threshold for what you'd pay renewals on, but I wouldn't fuss over it too much.
 
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