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Being an independent agent has its advantages and disadvantages. A big advantage is you get to choose who it is you work for. You can pick companies with good reputations, benefit plans, etc. But, with that freedom comes some responsibility. It is your responsibility to investigate if this is the best position for you. For example, if you are told, "Benefits Offered," great. But it's up to you to find out:

• What's covered under the benefit plan?
• Do you have any financial obligations?
• Is there is a waiting period before you are eligible for the plan?
• Is your family eligible?
• What happens if you resign or are terminated?

Another aspect to consider when evaluating companies is "Are commissions offered?" If so, does that mean residuals are not offered? Some ISOs confuse the two or choose to opt for a commission over a residual and "take the money and run." It is up to you to figure out exactly what the company offers and what is best for you.

When it comes to residuals, some is better than none. But, you can't just assume that since a company offers residuals, it is the company for you. When it comes to residuals, it's important to find out

• Are residuals vested?
• How are residuals calculated?
• When are residuals calculated?
• When are residuals paid?
• How are they paid?
• Is there a waiting period before residuals can be collected?
• Are residuals offered for the life of the account?
• If they are offered for the life of the account, does that mean someone else can benefit in the event of our death?
• What are the exclusions or limitations, if any?
• If you quit, do you have to pay back any residuals?
• If you are fired, what happens to the residuals?
• If the portfolio is sold, what happens to your residuals?
• Can you get this important information in writing?

Just as all companies are not the same, all residual packages are not the same and as an independent employee, it is up to you to find out where the best deal is for you.

 

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