SIAA - Buying Out - ANYBODY DONE IT?

[insurance1822]

Ok we all know about the 30% of the book value BUT does anybody know what's up w/ the 15 year thing? It appears you either owe them a "fee" for 15 years ON TOP OF your buyout....or you have a 1 time fee (in addition to your buyout) that progressively decreases over the 15 year contract. Hence larger fee if you leave year 2 and much smaller fee if you leave year 10

 

[hesse]

makes sense that the fee would be smaller in year 15 because the 30% of your book would be much larger at that point?

 

[shawnmwalker]

Ins 1822,

Shouldn't you know? You are an SIAA guy. You have the contract in your drawer.

 

[todd02]

Ins 1822,

Shouldn't you know? You are an SIAA guy. You have the contract in your drawer.

^This...

Are you signing contracts without knowing your Out options to a T? Lmao!

 

[insurance1822]

Yep - I own it. I had no idea my agency would explode w/ growth like it did. In all calculations (conservative to aggressive...) I was just WAY off. I thought owning an independent agency was the end game..that getting carrier contracts was so difficult to do that SIAA was my ticket.

But that doesn't excuse not reading the contract in full. Young..stupid & short sighted. I'm no exception to learning the hard way & the bottom line is I wouldn't have grown like I did (as fast..) without SIAA in the beginning. Back that into the equation ...the buyout IS manageable.

 

[blue_wynd]

How do SIAA determine book value for the 30% buyout? 1x or 2x of the commission?

 

[Johnboy]

Looks like you pay on the way in and on the way out. But the big question is it worth the ride on the way out $$?

 

[tmanning]

We see this all the time, the benefits sound amazing in the start and agents overlook the exit terms. We have had a few SIAA transfers it is possible, but is it expensive. Good luck. - Tiffany - Pacific Interstate Insurance Brokers

 

[Ins ForCali]

We see this all the time, the benefits sound amazing in the start and agents overlook the exit terms. We have had a few SIAA transfers it is possible, but is it expensive. Good luck. - Tiffany - Pacific Interstate Insurance Brokers

Dear Tiffany,
I am planning to open my own agency by January in North Hollywood. I have 8 years of experience as a producer for an Independent Agency. With big network of referrals and knowledge of the industry the only thing I need is the access to Preferred carriers. The current book of business is owned by the agency I am with right now, so I will be opening new business from the scratch.
Can you please give me an advice if it will be possible for me to join PIIB right from the start? Any other tips?

 

[Insurance96]

I really will like to know what to ins for cali question to tmanning. Thank you!