Advice: Captive Agent Joining Independent Insurance Agency

[elephant23]

I am currently a captive agent, our rates are not very attractive and on top of that this company has 30% market share where I live. I have thought of going independent in the past but did not have the income to get started. I recently received an offer to join an independent insurance agency; they are just getting started but have an established tax preperation/bookeeping business going. As an agent with them they would want me to focus on commercial although I am not limited to this. I would not pay any overhead at all and they would provide me leads from the existing business. They are proposing a 70/30 commission split in my favor with renewals at the same rate and are offering a very minimal base pay in addition for the first 7 months. Does this seem like a good deal? Any advice would be great. Thank you.

 

[souldeux]

Saying "focus on commercial" makes me think you're referring to a P&C agency - am I right?

If I am, then you're out of my area of expertise (I'm a life guy). However, I do see one question that I'm sure we'll want answered: do you own your book, or do your clients belong to the agency?

 

[elephant23]

Sorry for the mix-up. Yes they would like me to focus on Commercial p&c. I also have my life and health license and the commission split would be the same 70/30 on that as well. My contract stipulates I can not solicit customers from my existing book when I leave Farmers. However if customers decide to follow me they have that option and I believe some would. My book of business is relatively small though.
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As far as whether the customers belong to me or to the agency this was'nt answered directly for me. Apparently some would be my customers and some would be the agencies and some would have the option to choose.