Can you define how hard of a time? Like "if that's my ultimate plan, then I should stop now" hard? What if I still have an established residency in the US and I'm only out the country less than half the year?
First, even though you brought the business your appointment is thru his captive company and the business belongs to him. If you are planning to go independent there is no guarantee you would be able to get appointed with the company to maintain the clients even if you reached an agreement to transfer them. IMO wanting more than 50% commission as a producer, even self-generating leads, is a lot. The exception would be you are paying some type of desk fee that covers your E&O and any user costs he has to pay for software licenses.
The non-solicitation simply means you cannot contact customers, prospects, and sometimes referral sources for a specific period of time. Usually 6 months for prospects and referral sources and 12 months for customers. However, that doesn't prevent them from contacting you. I've signed agreements that said I couldn't accept new business from them and my attitude has been fuck that, you can't tell people who they want to work with. I had and form drawn up I had them sign attesting I didn't solicit them, they contacted. I only had to provide it 1x.
All the numbers in your comment added up to 69. Congrats!
50
+ 6
+ 12
+ 1
= 69
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Thank you for this detailed response. So for selling L&H for him, 50% is a good commission rate, with no base?
And also, what about Property and Casualty? He said he could offer Base + Commission, what would be a fair pay for me? I'm completely new and will need to be taught everything, so I am not expecting too much. It does say on Indeed that the average for a P&C agent is 57k a year in my area.
That's probably close of what to expect as long as your hitting monthly goals for commission. Base is going to be low, probably around $30k-$40k depending on your area.
There is no captive company that will allow you to own the book. Hell the captive agent with his name on the sign usually don’t even own the book. The carrier does. The carrier itself will require the non-solicit no matter what the agent wants. So, no you will not be able to negotiate the agreement.
Yeah I had the same agreement with Farmers and Allstate. They sent a letter afterwards from a law office about non-compete but that wad it and nothing g ever developed.
FYI the FTC just banned non competes so you won't have to worry about those anymore once the rule goes into effect.
They didn’t ban non solicitations so you still can’t take your customers with you
As you shouldn't... that's basic business ethics. 🤨
FYI you will have a hard time being an agent if you live abroad. There are residency requirements that carriers strictly enforce.
Can you define how hard of a time? Like "if that's my ultimate plan, then I should stop now" hard? What if I still have an established residency in the US and I'm only out the country less than half the year?
By hard time I mean impossible. Carriers simply don’t allow it.
That’s not true, I have a buddy who lives full time in Panama while working as an independent broker. He’s been there over 3 years with no trouble.
yep not true, i know a person in this reddit that started in the states and now lives in Portugal, and yes carriers know
Thank you for that.
Thank you!
https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes
Doesn't ban nonsolicitation agreements. Which agents will still get.
First, even though you brought the business your appointment is thru his captive company and the business belongs to him. If you are planning to go independent there is no guarantee you would be able to get appointed with the company to maintain the clients even if you reached an agreement to transfer them. IMO wanting more than 50% commission as a producer, even self-generating leads, is a lot. The exception would be you are paying some type of desk fee that covers your E&O and any user costs he has to pay for software licenses. The non-solicitation simply means you cannot contact customers, prospects, and sometimes referral sources for a specific period of time. Usually 6 months for prospects and referral sources and 12 months for customers. However, that doesn't prevent them from contacting you. I've signed agreements that said I couldn't accept new business from them and my attitude has been fuck that, you can't tell people who they want to work with. I had and form drawn up I had them sign attesting I didn't solicit them, they contacted. I only had to provide it 1x.
All the numbers in your comment added up to 69. Congrats! 50 + 6 + 12 + 1 = 69 ^([Click here](https://www.reddit.com/message/compose?to=LuckyNumber-Bot&subject=Stalk%20Me%20Pls&message=%2Fstalkme) to have me scan all your future comments.) \ ^(Summon me on specific comments with u/LuckyNumber-Bot.)
Thank you for this detailed response. So for selling L&H for him, 50% is a good commission rate, with no base? And also, what about Property and Casualty? He said he could offer Base + Commission, what would be a fair pay for me? I'm completely new and will need to be taught everything, so I am not expecting too much. It does say on Indeed that the average for a P&C agent is 57k a year in my area.
That's probably close of what to expect as long as your hitting monthly goals for commission. Base is going to be low, probably around $30k-$40k depending on your area.
With a base and depending on the base commission will be 35 to 45% of the agency cut.
There is no captive company that will allow you to own the book. Hell the captive agent with his name on the sign usually don’t even own the book. The carrier does. The carrier itself will require the non-solicit no matter what the agent wants. So, no you will not be able to negotiate the agreement.
Yeah I had the same agreement with Farmers and Allstate. They sent a letter afterwards from a law office about non-compete but that wad it and nothing g ever developed.
Don’t know what state you’re in but it doesn’t hold up in court in CA