The Show's About to Start, Commission Termination Post Follow-up

Well I made it to Miami and I'm ready to learn what this season's East Coast show has to offer exhibitors and attendees. I'm also hear to learn through observation and conversation what the "state of the channel" is for show exhibitors as well as attending agents, partners and VARs.

While in transit to the show today, I did have an opportunity to speak on the phone with several people who responded to my newsletter post about the "morality" of terminating agent commissions. As expected, the terminated agents I communicated with think they've been mistreated and those involved on the carrier side have a completely different view.

I do want to say that while I identified one carrier in my post because a photo existed that identified that carrier, the commission termination issue is NOT WITH JUST ONE CARRIER. In conversations I've had over the past several months it has come to my attention that at least two other TA vendor members have also "put the pressure" on agents that were not "pouring on the business".

It's not TA's position to say if one thing or another is good or bad when it comes to agents getting their commissions cut off. TA's only interest is to ensure that topical issues of concern to TA's 3,800 members get the opportunity to get objectively and professionally discussed in a manner that's not too boring.

In any event, while I'm here at the show I will make a special point to query those who have an opinion on this commission termination issue to see if the whole matter is A BIG THING or just a small thing. Points of view I'm particularly interested in collecting are those of the master agents.

One thing that seems clear to me (in light of recent industry events) is that some (if not many) carriers seem to be interested in doing business primarily through just a limited number of master agents. That may be the best way for carriers to get the best return on the co-marketing dollars they invest to "prime the revenue pump". That being said though, are the master agents ready to take on a bigger leadership role in the industry?

If the vendors are giving some or all their co-marketing dollars to the master agents instead of spreading it all around, is that a good thing? Are the master agents ready to be the key opinion leaders as to which directions are best for the channel?

Based on conversations I've recently had with several key opinion leading master agents, I think they are ready as many of them are already exercising their leadership roles.

But leadership comes with many responsibilities. Spending carrier co-marketing money effectively is a fun way to be a leader. Helping resolve sub-agent commission issues is a less fun leadership job.

What do you think?