Tied Agency

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Twister

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Hi there

I have an oppurtunity to set up a business as a tied agent for a leading financial instituition.I have not worked in the finance sector before, however I have spent the last 10 years in sales.(I am 30)Obviously the company that are offering me the oppurtunity are telling me of all the benefits etc. I am wondering if anybody has any views,opinions,potential pitfalls about my situation.I have just sold my shares in a company that I half owned and have been looking to get into something new for a while. I am just afraid I might be a bit too late starting in a new industry.

Thanks in advance

Jim Bob
 
I dont see your lack of financial experience as a pitfall.
Sure it may be a potential hurdle to overcome but that would also depend on your team (if any) and the backing (training_) you recieve from the financial institution.

I'd consider why the institution are seeking you? Sales is probably the main force, but that in itself is a good start.

what is the institution giving you in terms of support, planning etc and what are you required to put up from the outset?
 
Thanks for responses

Training is initially a 4 week intense training course, they also provide ongoing back up etc. From what I understand I would be more or less like an employee except I would be relying on commission rather than wages.
 
Are you interested in a career in financial product sales? If not that could be another pitfall.
 
I took a position as a tied agent with a large financial institution last year, and left after around 8 months. A couple of comments. I found the training to be good with regard to the sales process, but poor with regard to generating sales leads. My biggest problem, (and it's to do with me personally) is that I found that I didn't like making cold sales calls, which was what was expected in order to generate leads, once my immediate circle of acquaintences was exhaused.

There was a certain amount of bull offered with regard to a client bank and support from a call centre. I did get a client bank. However, it was 90% full of clients who had taken out mandatory mortgage protection policies with the institution and who weren't interested in availaing of other products.
The call centre leads, I got a few. But like around 5 in total.

Botton line is that you can have a successful career in this if a) you know a lot of people b) you are happy to be quite pushy and c) you don't mind cold calling. You should take with a large pinch of salt the client bank/other support you might be offered.

Best of luck
 
AJC said:
I took a position as a tied agent with a large financial institution last year, and left after around 8 months. A couple of comments. I found the training to be good with regard to the sales process, but poor with regard to generating sales leads. My biggest problem, (and it's to do with me personally) is that I found that I didn't like making cold sales calls, which was what was expected in order to generate leads, once my immediate circle of acquaintences was exhaused.

There was a certain amount of bull offered with regard to a client bank and support from a call centre. I did get a client bank. However, it was 90% full of clients who had taken out mandatory mortgage protection policies with the institution and who weren't interested in availaing of other products.
The call centre leads, I got a few. But like around 5 in total.

Botton line is that you can have a successful career in this if a) you know a lot of people b) you are happy to be quite pushy and c) you don't mind cold calling. You should take with a large pinch of salt the client bank/other support you might be offered.

Best of luck
Click to expand...

Isn't cold calling forbidden by the Financial Regulator?

Did you have sales experience previous to selling financial products?
 
Maybe they meant "cold calling" existing customers to interest them in additional products which, as far as I know, is allowed?
 
As a tied agent you may find that you will be competing with the financial institutions own call centre with attached freephone telephone number. You will only be able to sell that institutions products that may or may not be competitive periodically. You will be handling queries from customers that may not have given you any business directly. How do you cover annual leave, sick leave etc. Is your commission fixed or will it change. How much do you get toward the upkeep of your premises etc. Will you be required to service "cash" customers. When you are out calling on local solicitors/accountants who will be minding the shop.
Very importantly where is the location of your premises? Will you get off the street business, what was there before you?
 
Thanks for all the replies

To answer a couple of questions:
I do have sales experience and have no problem cold calling
I would like to think I know a lot of people from a) my own social circle and b) previous clients form my last business whom I wouldnt have a problem calling.
I am interested in making a career in financial product sales

Re: The rest of the points made, I will have to take them up with the institiuition when we meet again. Your comments have been very helpful and hopefully I will get the agency. Either way I will let you know how I get on.

Thanks again
 
CCOVICH said:
Isn't cold calling forbidden by the Financial Regulator?
Click to expand...

Cold calling of private individuals is not allowed.

However, if you have a business telephone listing, or a listing in the golden pages then you are fair game. (or so I was told)
 
I spent a short while as an internal auditor with one of the institutions, the majority of my audits were on tied agents.
2 quick points - firstly, there is a lot of regulation to be complied with and as far as I am aware, this is increasing steadily (I'm sure the training course will cover all of this). Secondly, it can be a very profitable business, but it's also very competitive and you are relying on your institutions products being as competitive as whatever else is out there (remember, there will be new entrants to the mortgage market this year). Additionally, like many other people in the country, your fortunes will be tied to the tail of the property market as presumably that's where the most of your business will come, be it life assurance, mortgages etc....
Good luck if you decide to proceed, as I said earlier it can be very lucrative.
 
Twister said:
I would like to think I know a lot of people from a) my own social circle and b) previous clients form my last business whom I wouldnt have a problem calling.
Click to expand...
Be careful of mixing money/business with personal contacts in case things turn sour or of treating existing personal/work contacts as potential guinea pigs.
 
Twister said:
b) previous clients form my last business whom I wouldnt have a problem calling.
Click to expand...

Could this be prohibited in any way under a 'non-compete' type clause in your previous contract?

Anyway, all the best, you sound like you're able for it.
 
Maybe look at the Mortgage Business, at least you could save potential clients' cash on a monthly basis by re-mortgage etc ....( and gain more business for yourself) and get spin off Mort. Protection Business also.

I have an issue with Tied agents as they can only sell you that finanaical institutions products..... fine for some but not for others...
Best of luck with it
 
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