Anyone Hold a Goosehead Franchise?

[todd02]

Clarissa, Goosehead takes 50% of renewal commissions. With my 5million premium book that's around 250k in commissions. At your 30k for a CSR I could hire 8. I have 2. Such a joke of a business model. I then have 3 Producers and a fourth coming. If anything Goosehead taking 50% of renewals limits scalability.

 

[shawnmwalker]

Not trying to be difficult here but....Answer what you are comfortable with.


Did you say....The Franchise fee is what pays for the service center, not a % of renewals?


Also if I could get a service center for 1-2% (Of my commissions) from my carriers why pay to have Goosehead do it? for seemingly, A lot more?

And one other...what was it...... Oh Fees. I believe you teach fees, fees, fees. All good in a state where that is cool to off set the cost of the service center....what about a state where fees are no good? Or what if a state says no more fees, does that change things? How does it change when you compete against an agency not charging an agency fee?

 

[captiveagent]

Here is my understanding of Goosehead.
Fee is $60,000.00 in Texas and starts at $25,000.00 in other states.
Renewals are a 50/50 split.

Question: Do they handle new business quoting? Is it really "NO SERVICE WORK"?

 

[shawnmwalker]

Still hoping to get some answers to my questions above, if not from GH folks, then from IA owners. Why would someone outsource service for 50% of the renewals when they can get a carrier to service for so much less.....Help me understand.

Also Fees. If fees are a huge part of the secret sauce. (Big If, I know) What happens in states that don't allow fees. And what happens when a GH agent goes toe to toe with a non GH agent not charging fees?

 

[Mark savant]

I'll be honest, I've been considering the franchise option as it takes a lot of the guess work out of starting a raw new agency.

For a start up, there are so many hurdles to overcome; appointments, volume requirements, staffing, marketing, after hours service, accounting / balancing carrier commissions etc.

The idea of a proven model laying out a specific framework to be successful is interesting. I'm not so much hung up on having direct appointments, I care about generating wealth. The franchise models do have some appeal.

That said, the contracts are 250+ pages and are absolutely terrifying. I feel like I'm signing my life away. It's hard to know exactly what you're getting yourself into as the language is built to protect the company, not me.

Furthermore, I have a very hard time understanding how the company could have a 90% retention ratio when people don't have access to the person who wrote the business. Where does that line end? What if down the road the service center lays off a bunch of people and the agents have to handle more customer service?

All that said, I don't see how someone could build a scratch agency without being in a group. How can one get the appointments they need to be competitive and meet the volume requirements. It seems daunting.

 

[Dreamiekid]

There's plenty of transparency, that's the beautiful part about Goosehead and how we're disrupting the industry. We have a very VERY extensive due diligence process where we disclose everything you would need to make an informed decision.

There's an initial meeting so you can understand how the model works, and what's included in the franchise fee. We host another meeting and show you a financial model, with very conservative averages, so we're careful not to give you unrealistic expectations. We also host an open house where you come to our headquarters, meet our CEO, President, and EVERY department head so you know who you will be doing business with. You also shadow our sales and service agents so you can see exactly how they operate. There's several breakout sessions throughout the day to show you our marketing strategy and how to use our systems. THAT'S ALL OBLIGATION FREE.

If after the open house you decide to move forward there's a contract discussion to ensure that you understand everything in it. What's not transparent about that? Our model is completely different, and you have to be open-minded enough to listen long enough to understand it. And I'll be honest, it's NOT a fit for everyone. For those who take that time to learn how we operate truly see the value, and leave no stone left unturned. I hope that helps shed some light on why we're different. Thanks.

Clarissa
214-838-5243

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No it's not a bonus lol. Look, our model is not a fit for everyone.

Oh, and good luck hiring a CSR for upwards of 30k+ annually, when you could have a team of 80+ P&C licensed agents to proactively maintain your book of business at a 90% (conservatively) retention rate, which is included in the franchise fee. We've got scale (scalability).

You are a joke lol

 

[Dreamiekid]

That's inaccurate information not sure who told you that. Feel free to call me if you'd like to learn more. Thanks!

I bet you don't even have a Insurance License lol

That company is a joke.

 

[Dreamiekid]

If you live in T

I'll be honest, I've been considering the franchise option as it takes a lot of the guess work out of starting a raw new agency.

For a start up, there are so many hurdles to overcome; appointments, volume requirements, staffing, marketing, after hours service, accounting / balancing carrier commissions etc.

The idea of a proven model laying out a specific framework to be successful is interesting. I'm not so much hung up on having direct appointments, I care about generating wealth. The franchise models do have some appeal.

That said, the contracts are 250+ pages and are absolutely terrifying. I feel like I'm signing my life away. It's hard to know exactly what you're getting yourself into as the language is built to protect the company, not me.

Furthermore, I have a very hard time understanding how the company could have a 90% retention ratio when people don't have access to the person who wrote the business. Where does that line end? What if down the road the service center lays off a bunch of people and the agents have to handle more customer service?

All that said, I don't see how someone could build a scratch agency without being in a group. How can one get the appointments they need to be competitive and meet the volume requirements. It seems daunting.

That is where you are wrong. ANYBODY can start a independent agency from scratch. When people join cluster group, it's because they are lazy.

All these people telling everyone that MGA or cluster or whatever group to start a IA is a joke.

 

[CourtneyH]

Brightway just last week announced two new ways for experienced P&C Agents to enter its franchise system. Here's a link to the news release: Brightway transforms the insurance distribution landscape

The Independent Agent program allows experienced Agents to try before you buy by selling in the Brightway system while qualifying for franchise ownership. Once you meet sales goals in the Independent Agent program, you can qualify for a fully financed, lower-cost entry fee ($30K) into the company's new franchise model, called Office Agent.

Insurance Journal published an article on this last week that provides more insight: Brightway Goes 'All In' on Independent Agents, Unveils No-Cost Path to Agency Ownership

 

[shawnmwalker]

I thought John Kearns was telling us we should go to Brightway or goesehead at some point?