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Typical Independent Contractor Structure
In the Broker/Agent model we have a more fair arrangement. This model is commonly found in Real Estate, Insurance, and Stocks and Commodities. Let's say you are a Broker and you hire Robert to be one of your Agents.
Now every time Robert makes a sale, he earns a commission based on the value of that sale. You also receive a portion of the sale even though you didn't make that sale. Is that fair? Well, you have certain kinds of overhead for which only your are responsible to pay for such as telephone, office rent, office supplies, advertising, etc. Also, you trained Robert and taught him all your "good stuff" on how to be successful in your business. So, it only seems fair that you receive a portion of each sale and the more successful Robert is, all the better for you, up to a point...
What if Robert becomes very successful? Maybe he'll want to go out and start his own company . Now, he can earn an income whether he makes a sale this month or not by hiring his own agents. Now what happens? Well, he sets up his own business without you and actually becomes your competition!
This guy knows all your "good stuff"! And it gets worse, because pretty soon, he is hiring and training new agents to take away even more of your business! Why is this? Because as an agent, he didn't have the same opportunity as you.  
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