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Hey what's up out there Dave Buford here helping agents like you with your insurance sales questions and today's question is actually a pretty good one I got gotten several times over the years I've had agents that have approached me whether they've posted a comment on my YouTube channel or they've talked me over the phone, and they've asked questions such as why don't I just contract directly with the company instead of through an agency and so what I'm going to spend time doing in this video is just basically describing and what circumstances one would contract direct to the company and whereas what other circumstances you would contract direct to the agent and agency and then in some circumstances kind of clarify some things because I think there this question is posed upon in general some misunderstanding not all the time but then try to give you my bias as I'll say as to why I think working with an agency is superior to working direct with a company in the rare instances that it's still something that is allowed so lets kind of talk about this from the standpoint of where most people are coming from first if you're new to this business you've probably thought about well I see there's a lot of agencies that recruit, but I haven't found one that quite suits me and kind of what I do why would I want to consider working with an agency I could just go direct to the source and do my thing there well so here's's kind of the thing that that is not necessarily the reality of the insurance recruiting business it's it's been in this business of insurance over the past twenty thirty years that insurance companies oddly enough have moved away as a general trend from the recruitment of insurance agents I think what has happened and other experienced agents can back this up is that insurance companies realize that their unique offering to the market what they could excel at best wasn't necessarily recruiting and sustaining an agency force or an agent force instead what they do best is the creation and administration of insurance products and the management of the premium monies that come from it, and so they got out of the business really of the recruiting business you've seen several of examples over the past many years when large insurance companies have literally liquidated their insurance career force to the point now where the vast majority of agents are independent they work through an agency or in marketing organizations such as an FM oh I am oh that kind of thing there is one in particular I think it was American general back in 2016 maybe 2015 they brought their whole four thousand plus career force in for a mandatory company-wide interview and fired everybody on the spot to the point where they brought in security people to collect laptops imagine all those years spent building a clientele and if you kept all that information right there on site you lost all your connections and contacts crazy, but this is just a small example of what's been...
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