Exclusivefocus Summer 2012.pdf - National Association of ...

scratch and turn it into a lifelong career.For five years I took home pennies, whileinvesting everything – money, time andhealth – into my agency. I spent 60+hours a week working, sitting at a desk,trying to establish my agency. I startedwith zero policies and over five years,grew to over 900 policies. Those are 900policies that I busted my ass and spentmy own money to obtain, while Allstatedid virtually nothing, except demandmore. After five years, I thought I wouldhave some breathing room, but as weall eventually find out, Allstate is neversatisfied. What I have is a greedy, underhandedpartner that is attempting toswindle me out of my livelihood.Quick TipsI’ve been conned, swindled, fired, andreaffiliated. I’ve had the indignity of havingto tell friends, family, leinholders andfuture employers that I was terminatedby Allstate, only to be stuck back hereagain knowing that any day, I will haveto go through the same process all overagain.So, because of my Allstate experience,I would like to offer you some the followingwords of advice:I was presented with Allstate’s marketingmaterial showing how great the ExclusiveAgent opportunity was. I askeda lot of questions during the hiring process,but because I was new to the industry,I did not know I should have asked tosee a copy of Allstate’s Exclusive AgentAgreement – along with any pertinentcontract supplements – before committingto the process. By the time I actuallyreceived a copy of the contract to sign, Iwas too far into the process to back-out,regardless of what it might have said.I will tell you this… anyone signing acontract with any insurance carrier thatbasically says…The agent must do anything and everythingthe company says;The company establishes how many andwhat kind of policies the agent must sell;The agent must meet any arbitraryproduction goals set by the company –which are subject to change at any time– or face losing their agency;Cover all expenses related to the operationsof the agency;Keep your agency open 44 hours perweek and mandate that you are openfor business the day after Thanksgiving,Christmas Eve and New Year’s Eve;Coerce agents into meeting certainstaffing numbers in order to increaseagent compensation;Acknowledgement that any customersyou write are the company’s property andthat they can be taken away with 90 daysnotice (120 days in California);Agree that the company can changeagent commissions at its own discretionwith a 90 day notice without input fromthe agent and regardless of the profit theagent has historically provided to thecompany;Agree to a one-sided, unilateral contractwherein the agent is devoid of anyrights, except the right to terminate thecontract with a 90 day notice.… is not signing the contract of a partnership.By signing such a contract, youare agreeing to a career of indenturedservitude and all you are getting in returnis the HOPE that you will one day makethis lopsided contract work enough sothat you can have some sort financial independence,as did the Allstate agents ofyesteryear.Working for minimum wageWith my agency’s low loss ratios andgrowth from zero policies to 900 pluspolicies, I’ve given Allstate an excellentreturn, especially considering that theirinvestment in me was minimal. But forme, the investment was great and myreturn was minimal. Does it make sensethat we, the producers of corporate profits,are nickel and dimed to death on ourcompensation? If I look back at the sacrificesI’ve made in terms of the investmentsI’ve made into my agency, whichinclude my time, efforts and financialcontributions, I would not be surprisedif my take-home pay was less than minimumwage.For anyone lookingto stick aroundAgents are working harder than everfor less compensation, customers are gettingless coverage at higher premiumsand stockholders continue to see tepidperformance, but the people at the topare not suffering. I don’t understand howa major company can lose market sharequarter after quarter, fail to significantlyincrease it share price and only increaseprofits sporadically while its senior executivesreceive lavish raises and perks.They miss their goals and are somehowrewarded. Yet when agents miss theirgoals, even if they are enormously profitable,they are sacked.It might be too late for me, but as JimMorrison famously said, “They got theguns, but we got the numbers.” It’s timewe take action! Last summer, Allstateannounced that it would change its basecommission to 8%, a 20% cut – which Icontinue to believe is its ultimate plan.Agents should not have to sacrifice 20%of their pay when the CEO receives a20% increase in his pay as he runs thecompany we love into the ground.Independent agents, including Allstateindependent agents, earn a basecommission of 15% on average. Theyrun their agencies as they see fit and,most important, they provide customerswith the policies and coverages theyneed, instead of being told what to sell.At Allstate, we are treated as employeesor independent contractors, dependingon what suits Allstate at that particularmoment. We are always treated as theservants of the Allstate Fat Cats and it’stime for a revolution!My advice is… if you plan on being along-term Allstate agent, you better jointogether and be prepared to fight. Notonly to save your businesses, but to saveAllstate. Greedy corporate executivesat the top are draining the essence outof our company, sending their zombie,flesh-eating managers across the countryspreading their disease and low morale.These people are draining nickels anddimes from the agents, customers, andshareholders so they can stuff their pocketswith dollars and they won’t give upuntil Allstate is void of life. Let’s take ourcompany back.I wish to remain nameless in hopes ofavoiding Allstate’s vindictive nature andcruel legal wrath. EfSummer 2012 Exclusivefocus — 53