No compete clause

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mhutch69
Insurance Journal Addict
Posts: 130
Joined: Wed Nov 30, 2005 1:26 pm

Re: No compete clause

Post by mhutch69 »

Indie,

I will explain exactly why an employee leaving with proprietary internal agency procedures and opening next door is not desired by any employer.

After TRAINING the minimum wage or higher employer on how to obtain markets, retain those markets, support those markets, solicit clients with a feasible marketing method, write the clients, retain the clients and etc. etc.,
I do not think requiring an agreement that requires the employee to have a minimum distance between his/her venture and the agency which taught him/her most of what they know is unreasonable.

I require written agreements with employees if they want to work for me. NO, they do not have to work for me. So, if the agreement is unreasonable, that is the great part about the U.S.A., QUIT and start one of your own.

But, with the financial risk involved, most employees ONLY see large profits during one period of time and NOT all the risks which come with owning a business. They typically do not know all the underlying costs associated with owning a business anyway.

Go start your business and report back how long you stay in business. The few clients who think their insurance will not be the same without you will soon fade away. Price normally will keep the client exactly where he is. Considering the normal limited amount of contact to service an insurance policy, the actual agent is typically not meaningful.

The company, price and financial security provided by the risk transfer is what works.

I wonder if your former employee went UNDER without you? I have never thought I was indespensable to any employer and have not met anyone who was. You will find your former employer will keep on going without you. He will find another dummy to do the work....
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