Appointments Before Going to Smart Choice

[randomguy]

Hey everyone,

This is my first post here. I'm brand new P&C in MN. Just got my license and my E&O. I will be joining Smart Choice - I'm already in contact with them. They take 30% of your commissions up to a certain cap on the carriers they appoint you to. My question:

Should I try to get carrier appointments (with no experience) before I join Smart Choice? While Smart Choice says they will help me get direct appointments, does being a member there actually help me get those direct appointments? In other words, is Progressive (for example) any more likely to appoint me through Smart Choice than it is on my own?

Ideally, I'd get as many appointments on my own as I can first. Then, I'd join SmartChoice and get help with tougher carriers. In addition, I can then be a sub-agent with no binding authority on some of the tougher carriers to get.

Go after appointments now and then join SmartChoice or just join SmartChoice now and lose the 30%?

 

[RicFlairII]

I read this forum a lot but have never posted.

I am a 26+ year P and C agent (used to be with Allstate, now
independent).

I would say if you can get appts. on your own then you do not
need Smartchoice. On the flip side, unless you have a lot of
experience no one is going to give you a contract on your own.

Also, read the Smartchoice contract carefully. You give up a
lot by signing with them.

 

[nyc2phi]

I read this forum a lot but have never posted. I am a 26+ year P and C agent (used to be with Allstate, now independent). I would say if you can get appts. on your own then you do not need Smartchoice. On the flip side, unless you have a lot of experience no one is going to give you a contract on your own. Also, read the Smartchoice contract carefully. You give up a lot signing with them.

What do you mean by "a lot of signing"?

 

[RicFlairII]

What do you mean by "a lot of signing"?

I said a lot by signing.

30% of your commissions, and profit sharing/ bonuses, which can be
huge. And a non compete should you try and leave.

A friends agency got a check for $13K recently from just one company,
and he has many other carriers he gets checks from.

 

[MarketAccess]

Careful of non compete, buyout requirements, exit requirements and about getting trapped in their program. Hear that they use carrier mix and non compete to trap you for the long term.

Not sure if they are in your area, but I'd suggest you inquire with agentco dot com to see if they offer their program in your area.

 

[bigvin55]

I was also looking at Smart Choice, they seem pretty good. The only bad thing is that they take 30% of the commission, and they have a non-compete for 2years.

Did you sign up with smart choice? How has it been going for you?

 

[INSUREGEEK]

Well, they all get their pound of flesh from somewhere!

SC might not have as many sign-up fees, and you can own what you write with the directs you can get, but there is always a price to pay.

And by the way, Progressive will appoint anyone with a pulse. Most IA's despise them unless their specialty is non-standard stuff.

Read carefully - make sure you are getting something that works for you - sign slowly - and Good Luck!!

 

[shawnmwalker]

This is a great thread with a lot of Great advice. 70/30 split, 2 yr non compete for carriers a group gets you.... Direct Binding authority.... access to overrides and Profit share checks. All things to consider. Good point Rick Flair!

Got to read carefully.

 

[wfs]

If you have at least 3 years of experience, check out Insurance Pros of Illinois. A MUCH better contract than Smart Choice and very fair. Direct appointments and several entry options including NO FEES. Binding authority too.