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Strategic Insurance Agency Alliance (SIAA) member agencies have the ability to participate in a unique and exclusive opportunity to increase their income.
Standalone agencies, or even those who have joined another group, can really only generate income two ways. The first is commissions – and we’re seeing commissions decline with many insurance companies.
The second is profit sharing. And while profit sharing can be very lucrative, it is an all-or-nothing proposition. You either get it or you don’t. And if your book isn’t big enough, you could be in what we would call the lower left-hand side of a grid – basically entry-level payments.
SIAA’s business model provides member agencies with the best aspects of local relationships with our master agencies and the benefits of being part of a large national organization.
On both levels, we have developed business relationships and a critical mass of volume and long term successful results with our strategic partner companies, creating a financial benefit for our member agencies.
Our Exclusive Compensation Program
SIAA member agencies have the ability to participate in our exclusive compensation program with up to five ways to get paid.
1. Commissions
The first is commissions. And while some commissions are being cut, our member agencies have the ability to earn the highest commissions available from our strategic partner companies. Also, for direct appointments, all commissions are paid directly to the agent.
2. Regional Profit Sharing
Second, the SIAA master agencies are large regional organizations that have built large books that qualify for profit-sharing in what we would now call the upper right-hand side of a profit-sharing grid with larger payouts and distributions made back to the agent based on their performance.
3. Regional Incentives
The third way to get paid is that master agencies may have negotiated some incentives on a local or regional basis. These may be more traditional incentives based on new business, growth, or other metrics.
The last two incentives have been developed nationally by SIAA. With over $4 billion in premiums and growing with our strategic partner companies, we have a national layer of income opportunities called Portfolio Management Services Fees, or PMSF. Like all other incentives, these are passed along to our members with total transparency.
4. Quarterly PMSF
So the fourth way an agent can get paid is SIAA’s quarterly PMSF. These are fixed incentives, paid throughout the year based on an agent’s new and renewal book of business.
5. Year-End PMSF
And the fifth and last way our members can get paid is the SIAA year-end PMSF. These are similar to traditional profit-sharing based on premium, growth, retention, and profitability.
The two SIAA Portfolio Management Service Fees are distributed to member agencies over and above regional commissions, regional incentives, and any regional profit sharing.
The goal of all of these incentives is to enhance the relationship between our member agencies and the strategic partner companies. The five ways to get paid also provides a competitive advantage for our member agencies over other local agents by putting more money in your pocket to reinvest in your agency or to support your family.
Many agencies are sitting on the ability to increase income and don’t even know it. Our local master agencies can help you to identify the increased income potential and develop a process to move forward and capitalize on this opportunity.