Jim, obviously, this is Agent Entrepreneur
Magazine, so tell me, how does the agent participate in the profit sharing you have spoken about?
Well, I mentioned earlier about a dealership that could do 20 contracts a month, and it
could get up to half a million dollars of premium when you talk about the service contracts
and the ancillary products. We’ve developed programs that allow agents to participate
in those profits also. So, at $40,000 a month of premium, that’s $480,000 a year. Let’s
round that up to a half a million dollars. If the loss ratio, and he had profitable business,
and he managed his business, at a 60% loss ratio, that’s $300,000 in claims, that’s an
agent being able to make $200,000 on as few as 20 contracts a month. And it doesn’t fit
the model for a single agent/single dealer type of program, but we’ve developed a program
that has multiple shares of stock, if you will. So an agent can buy a share of stock
in a bigger company and participate in the profits. There is some risk sharing in there,
but basically it’s limited risk sharing, so the agent gets to participate in most of the
profits that’s generated. And it’s a way for him to make more money, and we’ve got agents
that think the world of their profit sharing program, or their reinsurance position, and
they’re able to capitalize on that.