As an agent, you must evaluate many criteria before entering into a distribution agreement with carrier or service provider — both about the supplier and its partner program. Here are some tips to get you started.
Carrier/Service Provider
Competitive Product. Look for a supplier that has a service comparable in feature set and price to others in the marketplace. Flexible rates and service options also are preferred.
Geographic Reach. Look for a supplier that serves the geographic area you plan to sell into. In many cases, this will be a national footprint.
Service Record. Look for a supplier that provides reliable service and responsive customer care. These two items can most impact your ability to sell the service and retain customers. Ask about customer-retention rates and results of customer satisfaction surveys.
Financial Stability. Look for a vendor that has a track record and is financially stable.
Channel Revenue. Similarly, look for a supplier that counts on a significant portion of its revenue from the channel if possible. This is an indicator of a greater commitment to an indirect sales strategy.
Chemistry. Look for a supplier that shares your goals, belief systems and work ethic.
Partner Program
Strategic Recruitment. A service provider that recruits too many partners — or more specifically too many similar partners — to its partner program makes it more difficult for individual agents to be successful. Instead, look for programs that specify the partner profile, identify partners that match the profile and focus recruiting efforts accordingly.
Fair Contracts. Because agents do not operate an asset-based business, they must seek to protect their revenue streams by the only means at their disposal — the carrier (or master agent) agreement. What constitutes a “good” contract may vary from agent to agent, but there are some protections that agents should seek (see article, What Are the Basic Components of an Agent Agreement?).
On-Time and Accurate Commissions. Look for vendors that pay commissions accurately and on time, preferably using direct deposit. They also should provide detailed online reporting capabilities.
Reasonable Compensation. The highest commission percentage is not an accurate indicator of the best partner program. (Can they afford to best the competition over the long term?) Look for a fair and sustainable commission.
