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KeaneTel Lures Agents With “Cap and Trade Plan

Master agency KeaneTel has announced a new compensation arrangement, the KeaneTel Cap and Trade Plan. Under the plan, KeaneTel will “cap” the commissions it keeps in its split of commissions with agents who “trade” their current master agent for KeaneTel.

KeaneTel will provide new agents access to almost 30 carriers without fees, at guaranteed higher commission rates than their current master agent, with a maximum cap on the amount of money KeaneTel will keep as their portion of the master agent/subagent split.

“This is the perfect time for a program like Cap and Trade,” said Pete Keane, president, indirect channels, KeaneTel. “We are at a time today where several carriers have terminated subagents due to their not having met carrier-specific quotas. To protect themselves, both established agents and new subagents should associate themselves with a financially strong, highly supportive master agent [that] has already met and exceeded [its] quota requirements.”

Normally, a traditional subagent splits all of its commissions with a master agent, typically relinquishing 20 percent to 40 percent of the carrier’s commission payment for the life of the customer. In contrast, under the Cap and Trade program, KeaneTel allows agents to join with the master agency as traditional subagents, with a split of commissions guaranteed to be higher than it is with the subagent’s current master agent by capping KeaneTel’s profit from that split. The split process continues only until the maximum amount of the split is $1,000 paid to KeaneTel.

Keane said the master agency has been quietly beta testing the Cap and Trade platform over the last few months and, as a result, is experiencing the fastest growth of its agent base in history.

“Our expectation is we will see a growth of several hundred agents over the next few months,” said Keane. “By capping our share of the split, we assure the productive subagent that they will always get 100 percent of the commissions paid after we have met the $1,000 split portion we keep. This places them in the position of gaining the reward for the hard work they have done.”

This table illustrates the impact the Cap and Trade plan might have for a subagent on a typical 75 percent/25 percent subagent/master agent split:

Commission Impact

Total Sales Commissions per Month

Subagent 75% Split

Master Agent 25% Split

KeaneTel Capped Split Amount

Additional Annual Commissions Earned by Agent with KeaneTel

$2,000

$1,500

$500

$500

$0

$4,000

$3,000

$1,000

$1,000

$0

$6,000

$4,500

$1,500

$1,000

$6,000

$8,000

$6,000

$2,000

$1,000

$12,000

$10,000

$7,500

$2,500

$1,000

$18,000

$15,000

$11,250

$3,750

$1,000

$33,000

$20,000

$15,000

$5,000

$1,000

$48,000

The program is open to new and renewing agents, subagents and KeaneTel sales partners that want to convert. KeaneTel also will be adding deregulated energy products to this platform in Q1 2010, offering both fixed- and variable-rate electricity, along with fixed-rate natural gas service.


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