working with broker or as tied agent??

frag420

Hi

I originally posted in the work/jobs section but got no replies so thought i would try here instead. Suppose if there are no replies after a day or two mod can move it. Please give it a chance here first though!!

At present i am working as a tied agent for a life assurance/pension company. It is a commission only position with no benefits, expenses etc. I have to spend my days cold calling to make my appointments and my evenings in client meetings.

Recently i was in contact with a local broker and after a long discussion he mentioned that he may have a position available soon in his brokerage. Im seriously considering this move as there will a basic salary, bonuses, commission and expenses etc included in the package while my present position is commission only.

So what i want to know is if anyone has any insight into both of these types of roles and which would they reccomend. What are the pros/cons of each.I am thinking that with the current financial constraints i am having(along with most everybody else) that a job with a basic salary would be a no brainer. I would also save on ravel expenses as currently filling my car twice a week which is crippling me financially. Any help would be appreciated.

Cheers

As it stands, you are your own boss and you are remunerated on whatever business you generate. You do not have a client base to work from and I presume that you do not have any minimum production targets from the product provider. You may also get alot of support from the product provider in terms of Compliance and administration, but you are restricted in the products you can offer potential clients.

If the broker is offering you a package then there must be a minimum production target, over a 6/12 month period, that you will have to achieve to warrant the benefits being promised. Has this been agreed and how is it constructed?

The broker will probably give you access to an existing client base, how is this made up ie. companies, individuals?. The extent of your access should be agreed in advance. Why is the broker not working on this client base at present?

Who will look after the administration and compliance functions within the brokerage? Will you have access to other markets within the brokerage ie mortagages etc.? How many companies products will you have to familiarise yourself with?

No matter which distribution channel you are in at the moment, business is tough and it will remain so for some time to come.

frag420

hey gerard

thanks for the reply.
I suppose the problem at present is that while i am my own boss the company i work for relies on referal business as they do not advertise, ever. This means that when i do make conatact with a potential client i spend the first five mins of the call telling them who the company are, their history etc and why i am calling. I know myself that if someone called me out of the blue and wanted to call out to my house some evening as a representative of a company i never heard of to discuss my finances i would be a little suspicious and more than likely say no.

While i have no set targets as such they want me to have 2/3 client meetings per day. This i find impossible at present. Since i started with the company as a tied agent i am in more debt than i was prior to starting as i cant get in front of people to discuss our products. The only reason i have stuck it out this long is in the belief that it would somewhat turn around.
At present my day is made up of making calls and going to client meetings when i manage to get some set up. I feel there is more emphasis on sales than product knowledge even though it is only one companies products wherebye i believe that i will gain a more indept insight and knowledge of all things financial in the brokerage as there would be a more hands on approach. I am constantly stressed out and have no time for hobbies as i send my time worries that i dont have x amount of meetings set up for nxt week etc
Also the company i work for are starting to saturate the market with reps which is good for the company sales wise but not good for me as an individual trying to make a living. By the end of the summer there will be about twenty reps in a twenty mile radius all calling people trying to set up meetings and make a living

Now the broker i have talked to has a client base made up of individuals and companies. He mentioned that just before xmas he divided his clients amongst two guys in his office and that to start with i would have a small enough client base to work with. He is starting to take a backseat role in the brokerage and this is why he is passing on his client base. I will have to look after some admin and compliance work myself but there are people in the office that will look after this most of the time.

broker2008

Whilst I agree with gerards at how difficult the market is. You may find the job with the broker easier and with a bit of a salary. Because there are 2 others in the office, I would be a bit worried about that part. There are loads of brokers out there who have a "warmer" client base than what yours sound like that could take you on. I do genuinely believe that people need good advice especially now. Good luck with whatever you do.