BLUEPRINT TO FREEDOM

PART I: EVALUATION

Evaluating your current business and finding out how to duplicate your success in an independent environment can be difficult, timely and cumbersome. Use this blueprint to walk through the process step by step to leverage existing relationships, set up the groundwork for your transition and maneuver outstanding agreements with your career organization. We’ll prepare you to gain your independence, provide ways to maintain cash flow, and ensure you reap the rewards of breaking out and running your practice successfully.

UNDERSTAND LEGAL COMMITMENTS WITH YOUR CAREER ORGANIZATION

One of the biggest obstacles career agents face is transitioning from a career organization and retaining their book of business without violating their non-compete agreement. Here are some things that you should discuss with your attorney when reviewing your non-compete agreements, non-solicitation, confidentiality and non-disclosure clauses. Obtain a copy of your contract and pay close attention to the geography, clients, duration, servicing terminology and other limiting clauses. Your attorney will want to know how you operate your business in these respects. Get counsel and know your rights to ensure you aren’t violating any terms of the agreement you have with your career organization.

Non-solicitation clauses usually restrict agents from directly or indirectly approaching a current or former client for similar services for a certain period of time, or telling clients about plans to become independent prior to your departure. Remember, your career shop does not own your clients, but restrictions to previous clients for a defined time period may exist. Typically they are not long enough to impact making a living. Work with your legal counsel to draft a non-solicitation waiver to counterbalance your career contract for former clients seeking your services.

Non-compete agreements generally limit an agent from competing with his/her organization during and after the relationship. This restriction limits similar service for a specific period of time and specific geographical area. Courts generally enforce these clauses for the duration of the original business relationship, but clauses extending beyond termination must usually be reasonable in scope, time and territory. Consult your legal representative and further navigate the specifics of your
non-compete agreement.

PLAN FOR SUCCESS NOW, NOT LATER

Here are the first steps to developing your own blueprint. After you’ve investigated your legal commitments, you’re ready to plan your great escape. Here’s a step-by-step guide to help you navigate the transition, come out with a healthy, growing business, and reap the rewards
of independence.

DEVELOP A PLAN

Should I test the waters or jump in all the way? Your level of experience and established business relationships can help determine the right answer for you. For example, agents with less than 10 years in the industry can recoup the trail commission and benefits quickly with the higher independent compensation structure.

What are the benefits of a partnership with CreativeOne? CreativeOne offers a full range of benefits unique to the industry, including the first BGA/IMO-provided deferred compensation program. Other top programs include one that supports colleagues and coworkers you may refer to the business, a best-in-class annual incentive trip, an opportunity to earn rewards to support marketing efforts, an incentive program for ramping up production in your first 120 days of our partnership and so much more. Plus, you’ll be eligible for additional carrier-provided incentives.

Will I have to restructure my current staff? Cultivate your existing relationships within your current business. Identify an office manager or support person who can help you in your new role. Given the resources you can now access, you may be able to eliminate functions of your current staff. CreativeOne’s full-service support system includes case management, running illustrations, ordering medical records and scheduling exams. Each CreativeOne Sales Relationship Manager is supported by a team of three seasoned professionals who, as a team, are available to walk you through the application, submission and placement process.

Should I be concerned with cash flow? Evaluate your income stream, as well as the effect of annualization and trail commissions on your bottom line. Determine the cash flow necessary to support yourself and your office staff and if alternative revenue streams are available. Consider the expansion of your services to include senior planning solutions and cross-selling annuities.

How do I know which carriers will allow dual contracts? Expedite the process by contacting us to determine which carriers allow dual contracts. CreativeOne’s SureLC contracting program allows you to complete one application and process it for any and all carriers of your choice in less than two weeks.

How do I get E&O insurance? Contact your state insurance department and get an approved or recommended list of E&O carriers. Negotiated rates can be secured through CreativeOne.

How do I set up a new business? Consult your accounting professional and attorney for assistance in determining what type of organization fits your business model and tax strategy. Here are some advantages and disadvantages of a variety of organizational structures:

A Sole Proprietorship does not have the same state registration requirements of forming an LLC. However, an important limitation is that it does not limit liability to your personal assets.

A “C” Corporation is a separate legal entity under state law, as well as a separate taxable entity, that can protect the owner’s (shareholder’s) personal assets from creditor claims. The corporation is generally responsible for the debts and obligations of the business. Many small business owners do not opt for “C” corporation status because income is taxed at the corporate level and again at the personal level when dividends are paid to shareholders.

An “S” Corporation: Once incorporated, you can elect “S” corporation status by filing with the IRS and your state. If applicable, profits, losses and other tax items pass through the corporation to you and are reported on your personal tax return, and is generally not
taxed separately.

A Limited Liability Company (LLC) is the most common business type among independent insurance agents. It is formed under state law and can give the owner personal liability protection. Taxes can be assessed similarly to an “S” corporation, with business income and expenses reported on the owner(s’) personal tax return(s).

Once you’ve consulted with your tax professional and attorney and made the decision that’s best for your business, contact your Secretary of State to file the
official paperwork.

How will I manage my client and prospect data efficiently? Discounted SmartOffice packages are offered through CreativeOne’s Dynamic Marketing Portal. This CRM software allows you to quickly create efficiencies in your business, achieve your goals, and make necessary adjustments to how the business functions as it grows. SmartOffice is a web-based platform designed to help financial services professionals with customizable modules that allow users to easily:

• Track client contact and relationships
• Monitor activity tracking and history
• Store and protect critical documents
• Manage time and calendaring details
• Search client and prospect data with ease
• Create professional, customizable reports
• Integrate seamlessly with Microsoft® Outlook®

Is there an easy way to help attract key clients? By joining associations and networking locally with groups, you may be able to identify key individuals who can help expand your reach and put you in touch with groups who can benefit from your services. If organizations publish memberships to influential/key customers, verify your information is correct. Take advantage of opportunities to link from their website to your website.

FIND YOUR NICHE

Who are my top customers? Evaluate your current book of business to identify your best clients and most valuable relationships. Traditionally, the 80/20 rule can provide a solid outlook for establishing the relationships that will benefit you most both in the short-term and long-term. Set yourself up as the expert with the top 20% percent of your current book first, and grow from there. Prioritize your client list and discard the clients who drain your time and effort while giving little in return. To find out more about the top 20% of potential clients in your area, as well as additional demographic and psychographic data about these individuals and families, let us help you identify the ZIP codes with the highest density of key indicators to target the areas where your best customers reside.

Which clients have the most potential? Are there common trends among the top clients? How many referrals have they provided? Who owns an expanding business? Who’s looking for a business exit strategy? Who’s influential in the community on a professional and personal level? Ask yourself these questions and more as we help you start mining the information that will have the greatest impact on your success. Your CreativeOne Life Sales Team can help you evaluate your book of service for future opportunities.

Who should I turn to in an effort to create new business allies? Affiliations are the fastest way to introduce your business. Cultivate relationships early on to build the bridge between you and another association. Look for coexisting business that can gain from your book of clients and those than can transition to a new organization.

ATTRACT YOUR CLIENTS

How can I start transitioning my client base before I terminate? How many clients have you turned away because the products offered did not fit your clients’ needs? By offering a full suite of retirement planning products, you can more easily maintain your existing client base and simplify the transition process. Build the practice on
value-added services and begin referring those clients whose needs don’t fit within the career umbrella.

Why do I need to build client relationships before I terminate? Identify key clients and those with tremendous growth opportunities. Start reinforcing the relationships. From lunches and client events to personal letters and emails, find ways to interlace yourself into their lives and their families’ lives.

How do I prepare my current book of clients for a transition? You’re an agent and trusted guide for your clients. Capitalize on this and brand yourself as “the expert.” You desire to provide the most value to your clients with the best possible customer service. This is key because you can later use this to position yourself strongly in your independent practice. Clients will appreciate that you are working to provide them with the most selection and the best possible solutions.

I have too many clients to know all of them well; what if I lose them in the transition? This is a common obstacle among career agents. Before you make the transition, start a newsletter offering financial advice, recipes or a calendar of upcoming local events. This is your opportunity to brand yourself in the newsletter and not your career organization. Share personal stories or experiences with your clients to make sure they have an opportunity to know you and your family on a more personal level.

How do I maximize the potential for future sales? Take advantage of every opportunity with prospects or potential clients, even if you conduct an appointment and don’t make a sale. Never let those you serve walk out of a room empty-handed. If you don’t capture a sale, learn more about the individual or family’s needs and think of other ways you can assist them in meeting their goals now or in the future. Don’t be afraid to ask for referrals and begin expanding your book of business.
When you come on board with CreativeOne, you join a team of seasoned life insurance professionals who are truly excited to work with you. Since 1984, we’ve focused on helping life agents reach their goals and grow their business. Our team of experienced, knowledgeable individuals can help you meet the needs of even the most discerning clientele while streamlining the process from application
through placement.

Download the PDF version of the Blueprint to Freedom on Evaluation now!

 

 

 

 

 

 

Here’s how we can support your life business:

• Back-office support, including case design, development and preparation, as well as carrier coordination
• Application submission support, including illustrations, proposals, APS request coordination, scheduling assistance, application review and case follow-up
• Underwriting support, including a concierge in-house underwriter with over 40 years of experience
• And some of the most exciting, beneficial incentives available in the business

How could your practice benefit from a partnership with a team that’s consistent, accountable and committed? Work with us and find out how to get even your toughest policies placed.