"NEW BONDSMEN: FACTS AND ADVICE"

THIS IS LENGTHY BUT I BELIEVE WILL PROVIDE SOME BASIC, HOPEFULLY USEFULL INFO FOR THE NEW BONDSMEN:

Over the past few years I have gotten emails and PMs from new bondsman that for some reason, seem to think that I know what I am doing in this business. Let me preface this thread by saying I am a licensed Virginia bondsman. I am not a PI or a ‘bounty hunter’. My business experience has been limited to the restaurant and lounge business which I owned and operated for a number of years and of course my almost 30 years as an OTR Trucker with a major national company. Other than that, personal experience is one of the best teachers and I have been enrolled in that class for about 65 years.

First of all, I have never been a fire starter in this business. I am not here to tell you how to make $250,000 next year in the bond business. I suppose I have managed to write a fair amount of bail and have kept my expenses down and forfeitures at a bare minimum for years and to that end there is no real secret if you use your head and don’t make stupid mistakes. I am going to try and outline a course of action for new bondsmen and then as happens on this forum, I am fairly sure that the more “professional” folks will step in and hopefully “tweak” my words for additional help.

I will start by saying something that seems to forever pass over the heads of not only bondsmen but BEA or ‘bounty hunters’, PI’s and anyone in these related businesses.

“DO NOT QUIT YOUR DAY JOB”

This cannot be stressed enough. This business is feast or famine. I think the main reason I have managed to survive is mainly due to the simple fact that I do not rely on it for my total income… and never have. Now if you believe you are going to make a living right out of the gate, you better rethink your career choice. If your needs are small and you keep your head about you, you are a self starter and will go to the jail at 3am or when called without fail, if you gather great info and you are level headed and WRITE BONDS NOT PREMIUMS (meaning you are looking past the initial money and at the bond) … you may be ok starting out… but it will not be an easy road and most will not make it if this is their primary occupation. Now I am sure somebody is going to jump in here and say he is setting the world on fire with his 6 figure income but unless he has a stable of agents and is in an extremely lucrative AO, he is blowing smoke on you. It certainly may happen but in so few instance that you need to forget it. Successful bondsmen who have been around for a while have plied their trade for years and worked up to a stable of agents and BEA people. They didn’t start out big-time, believe me.

I will tell you that a number of years ago, several very close relatives of mine were absolutely setting central and northern Va. on fire in this business. It was not uncommon for them to write several hundred thousand a week out of 5 or 6 jails with only a couple of agents. They were in the proverbial “high cotton”… well, things never stay the same and today, business is slow, courts have tightened up, magistrates are PRing or putting lower bonds, new agents are in the business thinking they are gonna get rich and diluting the work pool. Many reasons have caused this downturn but it has happened and we may never return to the good ole days. The smart bondsman makes changes and continues to do the job and survive.

Ok, so having said all that here are a couple of things that I believe can help you in this business.

1. Take a close look at what type of bondsman you want to be. In Virginia you can be Property or Surety or both. Insurance or personal. If you have the money and you can stand the liability, a property bondsman may be your path. If not and for some other important reasons you may want to be a Surety bondsman. I am a surety bondsman because I was not convinced that this was going to work and did not want to obligate any more than needed to start out. Once you make this decision you can move on with the actions necessary to carry it out.

2. If you are Property you will have to wing it on your own, studying, learning, licensing and setting up everything pretty much from scratch.

3. If you are Surety, you will need to find; research and hook up with a general agent who is already in the bond business and under whom you can become a study. Who you become associated with is probably the single most important decision you will make in your initial move into the business. Many new bondsmen have gone down the tube because of a mismatch with the general agent they choose to join. The general agent will be associated with a Surety company and you will need to be licensed through them in order to write bonds. Depending on your state… Virginia requires a state bondsman’s license which includes an FBI background check including fingerprints, a Property and Casualty insurance license and if you carry a firearm you must also have a DCJS carry permit and I also have a state carry permit. All this is required prior to your writing the first bond and the fees involved can be extreme initially. Regarding General Agents to work under and Surety Companies to be licensed under; there are a bunch of them out there, some better than others. Find as much as you can about whom you want to work with because this can be your downfall or your success. I went through 3 before I found a good one.

4. THE CONTRACT: You will enter into a legal contract which involves the Surety Company and your GA and you will start out with a given percentage that is your net, a portion that goes to the premium for the bond which is posted using a “Power” (The Power is simply the piece of paper furnished by the company that you post the bond with… it represents the money/liability on the bond) You write the bond and a portion goes in to your BUF account; a build up fund that accumulates each time you write a bond. This is usually held by a third party institution during your active contract with the company. It is yours alone and when you get out of the business or leave this particular agent, this money is yours. You will, however, need to ‘finalize’ all bonds you have written with that agency and sometimes it is “like pulling teeth” to obtain your money. This is why it is extremely important to make sure that you know all there is about this GA and this Surety BEFORE YOU SIGN ON THE DOTTED LINE. I may mention here that contract percents will vary depending on the GA and the Surety. You may be fortunate enough to start out at a higher percentage. Be very wary of higher percentages to start and also be very in tune with what the GA wants you to carry as expenses. Some will provide you with phones at their expense thus giving you a lower contract; some may look to you to pay phone and advertising expenses thus giving you a higher contract. Be very observant of the workings of the contract and what is expected of you in the course of business.

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I ADDED THIS SECTION LATER: You may also start out as a "POSTING AGENT". This means that you do all the leg and paper work for another agent for which he pays you a small amount for your work. This is a viable option since it allows you a chance to see how things work without being liable for the bond. You won't make any money but you may gain experience. You will still need all the same licenses and pay all the same fees as a regular bondsman, you just won't be making any money at the time. As an example, one of our agents had a posting agent that worked for him and wrote under his guidance for a while. He genereally paid the posting agent anywhere from $25 to $100 per bond depending on the size and the distance he had to travel to write it and the posting agent needed to stay in constant touch with the regular agent since he usually needed to be walked through the process and know what to ask for in the information field. You could do this and maintain another job until you gained the necessary experience to go on your own. This may be a viable option for a newbie wanting to try out the business. Who pays for all your licenses is between you and the agent. In Virginia the initial output of cash can easily reach $2000 to obtain all your classes, your licenses and all the testing that is involved not to mention the time factor... so think long and hard on this as your career.
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5. Here is a simple explanation of how a bond is written and how the money flows.
a. The state dictates the cost on a bond, usually 10 to 15%. (Virginia is 10%) that means that if a bond is $10,000 the premium on the bond is $1000 paid by whomever is posting the bond. If you are on a 50% contract and have a 1% BUF contract your breakdown is as follows:
b. Of the $1000 you collected, you get $500 of which you send 1% of the face amount of the bond ($100 in this case) along with the other 50% ($500) to the Surety for the premium and your BUF account. So basically you end up with $400 in your pocket and you mail usually 2 checks to the Surety, one check for their premium, $500. And one check to your BUF for $100 along with whatever paperwork you are required to provide the Surety.
c. You gather the info, collect the premium, go to the magistrates office and post the bond
d. The defendant is released
e. When the case is finalized (sentenced) the bond is exonerated and at that time you will be required to submit a report to the Surety of this action. (this is usually done every 3 months or so but some Sureties may require every month)

6. Unfortunately most of this business is self taught and can be extremely hard on you, financially, physically and emotionally. I have found that regardless of training that you might get from your GA, you will still be tossed to the lions and have to figure much of the “trench work” yourself.
a. You need to be a self starter
b. You need to be very aggressive
c. You need to be a type A personality
d. Sometimes you need to be an azzhole
e. You can be compassionate when dealing with clients but don’t let that compassion override your business sense. Remain very wary of each situation.
f. YOU NEED TO KNOW HOW TO SAY “NO”
g. Believe nothing of what someone tells you and check out the info for yourself for confirmation.

7. Advertising is important but don’t go overboard, many jails post bondsman lists inside, while some put a phone book in the lobby. Other times you will need outside ads but advertising in this business is tricky and can be quite expensive. Be creative. I have phones in 5 or 6 different jurisdictions, all forwarded via toll free numbers to my office. I also have created (at no additional expense) a different company name for each jurisdiction… ie: Halifax Bail Bonds; Blackstone Bail Bonds; Lawrenceville Bail Bonds; Free State Bail Bonds; etc. etc… in other words create different avenues of advertising to get your name out there to the public. Some agents want to have only one name and that is fine. I follow the rule that “whatever floats your boat.” It’s not expensive if you are creative. Once you start writing, be extremely careful of the decisions you make on your bonds.

8. INFORMATION IS THE KEY TO THIS BUSINESS:
a. If your gut tells you it is wrong, walk away.
b. Do not hesitate to say no if you need to
c. Gather as much info on the indemnitor (co-signer) as you do on the defendant, ultimately the indemnitor can be much more important than the defendant
d. Make damn sure the indemnitor has a fairly strong bond with the defendant. In other words… immediate family if at all possible. Girl friend/boy friend is not a good thing although I have written many of these, it can go south instantly, so be ready for a problem.
e. Never shy from asking for collateral on a bond, regardless of the size of the bond. Sometimes I will get more money or a car title or something even on $1000 bonds. I lose bonds weekly to a guy that writes with little or no collateral. He spends much of his time looking for skips and spending money on BEA folks. I prefer to spend my time sitting around my pool sipping ice tea…
f. When you get a call, clarify the information into a process that works and flows easily. What I mean by this is… I have a form or list that I fill out while I am talking on the initial call. Put a little list together and stick with it. Be to the point, be precise, be short and sweet. In other words… You want to know the CHARGE, THE AMOUNT OF THE BOND, WHERE EVERYONE IS FROM, AS MANY FAMILY MEMBERS AS CAN BE CONTACTED, WHO IS SIGNING, WHAT DOES THE COSIGNER OWN, HOW LONG HAVE THEY BEEN IN THE AREA, IN THEIR HOME, ON THEIR JOB… AND DO THEY HAVE THE MONEY IN HAND. Never, never, never believe that someone has the money at another location if you will only get them out of jail. Check out the criminal history of the defendant. The more information you have, the better you will feel and the more secure the bond will be. If you can talk to the mother or father of the defendant, you will usually have a pretty good indicator of how the bond will go… if Momma says leave him in jail… walk away and don’t look back. I would rather have a strong mother as an indemnitor than the best “bounty hunter” available.
g. If you should get a show cause on a FTA, go to court with as much info as you can gather on the whereabouts of the defendant. If you can pick up the defendant beforehand, do so and take your signed ‘bailpiece’ with you to court. Always dress accordingly and be very respectful in court. Make sure that the courts that you work have your correct address so that you can get the show causes at your location. Courts do not care whether you get a copy or not… you need to be at your court date regardless of who got your show cause. Do not rely on your GA to notify you of a show cause date, if they have other agents in their stable, chances are you won’t hear anything cause they are usually busy with something else. The only time I have been in touch with my GA is when I mail them a copy of my report, other than that, I might see them once a year at the Christmas party. You are ultimately the bottom line and the responsibility is yours alone. Period.
h. Spend time introducing yourself to the lawyers, judges, clerks of court, local Sheriffs, Police Chiefs, Magistrates and anyone that is associated with the system in your AO. The more you place yourself in front of these people the more accustomed they become to you and your operation. The jurisdictions that I work know me and my daughter and we have a very good working relationship within the system. This is paramount to a successful bond business and it does not happen overnight. It takes time and effort to build a rapport with your legal system. Most of the people you will be working with are fairly well educated and want to deal with people that are professional. Unfortunately the bonding profession has suffered under a bad rap for many years. The licensing laws and regulations are so vast, different and in some states non-existent that this makes for an influx of non professionals that are simply looking for a fast buck and not a career opportunity. Bondsmen have been up against this façade for many years and it continues to plague the professionals in the business that strives for respect.

Anything you can do to improve the relationship you have within your community is to your advantage. Get involved with your community, hand out your cards, introduce yourself to your local politicians and local government folks like the mayor, town council and work on projects within the community if you have the time.

I use humor in a lot of my post on FRN (matter of opinion) I use humor in my life action also. I have found it is much easier to approach someone with a smile than a frown and I can certainly be serious when need be and when discussing projects or actions that require serious thinking.

9. PAPERWORK:
a. This business is deluged with paperwork and it must be kept up to date in order to be successful
b. If you don’t like paperwork, hire a secretary but few businesses, especially self employed persons, are without paperwork. Get used to it.
c. Depending on the state you are in, you will be required to fill out reports for your Surety Company, usually weekly or when you write business. You will have to send a copy probably to the GA you are under. You will of course have to maintain at least one business checking account and if you have collateral you MUST KEEP IT IN A NON-INTEREST BEARING ACCOUNT or you will be charged with “co-mingling” funds. This also brings up the item of staying up to date on your state laws and regulations pertaining to your business.

The few items I post here can help you, I believe. These little ideas have taken me forward in my bond business for about 10 years. I will tell you frankly that I have never written a million in a year, but I am consistent and my reputation with my GA and the system is good. If you want to be a big producer you can adjust your work schedule and your time to increase by just working a bit harder. I choose to relax now that I am actually on Medicare and fish and ride my motorcycle and not worry about the bond business. That is not to say that I have become lax… quite the contrary.

I hope these little tidbits can help you. Good luck and remember pilgrim… “DON’T QUITE YOUR DAY JOB”

_________________
Bill Marx, Sr.
"FREE STATE BAIL BONDS"
"FREE STATE INVESTIGATIONS"
DCJS: 99-176979
Cell: 434-294-0222

"Endeavor to Persevere" "Lone Watie"

"Good judgment comes from experience, and a lot of that , comes from bad judgment" "Will Rogers"

Great advice and where were you when I started back then?

_________________
Steve Faircloth
A Way Out Bail Bonds
(220) 204-9733 Cell
NSIN# SF0105
LIC. #704058

Very well put together Bill.
For some unknown reason . . . folks just seem to think that this business is simply rolling in dough (don't we all wish ). How little they know

_________________


Do not consider anything for your interest which makes you break your word, quit your modesty, or inclines you to any practice which will not bear the light, or look the world in the face .... Marcus Antonius

I AM Some Folks "KARMA" and A MODERATOR @ FRN

Luvonda,
That is because they see bondsman rolling up in Hummers and Cadillac Escalades, and so do the Commissioners, Magistrates and jailers!

I have a Mentor named Steve Ross who has been in this business for over 20 years. He said write bonds on the humble, live within your means, don't write a bond that you can't pay for if it goes to absolute forfeiture, and DON'T Showboat with your blessings. If you show up in a fancy car, the client starts to think you don't need his money and if you finance the bond, you won't get paid. He lives his advice and is the main reason for my conservative nature. I have seen them come, set the world on fire and then they are gone. Slow and Steady wins the race.

Bill, Excellent post and I appreciate the thought put into it, your years of experience, and your desire to give back via your post.

Scott

_________________
R.E. "Scott" MacLean III

"Leaders are like Eagles, you never see them in a flock, but one at a time"

Chesapeake Group Investigations, Inc.
Chesapeake Bail Bonds
877-574-0500
301-392-1100 (fax)
301-392-1900 (Office)

I drive a 2000 Pontiac Montana . . . I worked for a guy for 10-1/2 years that said the same thing. Boy did he get ticked if one of the boys rolled up to a job in something other than a "work" truck

_________________


Do not consider anything for your interest which makes you break your word, quit your modesty, or inclines you to any practice which will not bear the light, or look the world in the face .... Marcus Antonius

I AM Some Folks "KARMA" and A MODERATOR @ FRN

bump

_________________
Kathy Blackshear
Blackshear Investigations
Blackshear Bail Bonds
Sales Associate, Prepaid Legal Services, Inc.
Walsenburg, CO

Proud Member of the AB Reject Club

Dosn't get any more professional than that..... well writen speezee!

_________________
R&R
Professional Skip Trace Service
_________________________

Bill,

This is some of the best information for "want to be successful" bondsmen. I can't tell you how many new applications and contracts etc. I have added to our collection over the 6 years since my father started this business. Information is key. I'll say it again, information is key! The more information you have not only will help you in the event of a skip, but will show the principal and endorser how serious and professional you are to them.

Hat's off to you Bill. Great post.

_________________
Joshua P. Woodby
P.I./Surety Agent/Washington Co. TN Appointed Process Server
Owner, A Beagle Investigations and Process Service
TN P.I. License #6232, TN P.I. Company License #1496
Senior Agent, A Bail Away Bonding Company Inc.
T.A.P.B.A. Certification Always Current

Take pictures of indemnitors as well, it really reinforces the importance of the indemnity agreement. i also never let 2 signers see each others paperwork, one will lie and the other will swear to it. While you are talking to the potential indemnitor, check their criminal history, they won't know you are doing it and you may identify cohorts in crime!

Scott

_________________
R.E. "Scott" MacLean III

"Leaders are like Eagles, you never see them in a flock, but one at a time"

Chesapeake Group Investigations, Inc.
Chesapeake Bail Bonds
877-574-0500
301-392-1100 (fax)
301-392-1900 (Office)

I agree with you on this Scott 100%.

_________________
Domestic Security Investigations
P.O. Box 4462
Rockville, MD 20849
Tel: 1-800-387-0787
Anti-Moral Majority Club President
"Fear not the unknown, Fear the person who controls the unknown" Gene 7:14