Brightway vs Goosehead - Franchise Agency Opportunities

Mar 24, 2019

  1. TexasVet
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    TexasVet New Member

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    I know Goosehead touts referral networking with realtors and mortgage loan officers. They do not recommend internet leads.

    This is taken from their February 2019 investor presentation. GH has Corporate Agents and Franchise Agents (what we would be if we signed up.) Looks like the majority of Corporate Agents are straight out of college
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    Also in the presentation they claim their young, Corporate Agents are 3.4x more than the industry best agents. Their Franchise Agents are only 1.5x better.
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    So if they are giving you world-class training and service... why are you lacking behind so poorly compared to their in-house Corporate Agents?
     
    Last edited: Mar 27, 2019
  2. andy_M
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    andy_M Expert

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    It's a matter of preference and life stages.

    If you need a paycheck and/or there's no other path in, then that's a good way to go until some of the groups that require experience will let you in.

    Tough to describe, but when you reach a certain point in life/career, you just need to be your own boss.
     
    andy_M, Mar 27, 2019
    #32
  3. andy_M
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    andy_M Expert

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    I don't know enough to criticize, but going from a captive agency to either franchise seems like an illogical choice. If you have experience and a sales record, a cluster or group would welcome you with open arms at much better terms.

    I think I mentioned this to John in a private message, but the captive agencies seem to love taking people that have no insurance industry experience and don't know any better. Prove that you won't go bankrupt and your not a jerk and they'll take you. No one is dropping their independent agency gig to run towards Farmers, StateFarm or these two franchise options. It's established that agents run from the name brands once they learn better. I can't speak to the franchise options having an exodus, but their end of the deal is a little lopsided and I don't see anyone with an established track record going there over a cluster or group which doesn't require a huge chunk of flesh up front.

    The "servicing" value prop doesn't resonate with me- according to the agents I've talked to this is when you do a lot of your selling both of yourself and of more product - "hey have you priced life insurance???"... and that's coming from the name brand with the WORST life products on the market. You want those conversations because your friendly voice and that relationship with you is what they want.

    I know they have a lot of people doing decent, but personally, I think there are better ways to spend 25k. I mean- you could buy a lot of existing policies that are already earning for that kind of cash and just pick up a part of someone elses agency who is retiring. At least then you have a payback period of 2 years and could sell at any time vs however long it's going to take you to earn your way out of a 25k sunk cost ---that if you died tomorrow would be worthless to your heirs.
     
    andy_M, Mar 27, 2019
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  4. myfakename
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    myfakename Super Genius

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    But why would you buy a job? Most independent 'round here don't have set hours for producers as long as you produce. And if you don't produce you wont be successful as an "franchise owner" either...
     
  5. andy_M
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    andy_M Expert

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    Every business is a job, With franchises, you just have to sell a lot of burgers to get that McDonalds restaurant out of the red. Last I heard, the recipe for a great hamburger wasn't rocket science.

    I used to own a porta potty company on the side. You'd see guys with $100k trucks and all the nice gear and they'd look kind annoyed when you pointed out how many cans they had to pump to pay for that nice Ford F550. All businesses have expenses, but a franchise fee is a lot of money keeping you from breaking even in the first year.
     
    andy_M, Mar 28, 2019
    #35
  6. shawnmwalker
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    shawnmwalker Guru

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    I will throw in here, there are other groups that have created the service model for less than 50% of the renewal income and are geniuses' by also offering them to stay in the service center agreement for periods of time so when an agent learns about carrier service centers or "Wise up" to the fact that 50% is just an insane amount to give up, they can then opt out after that period.

    We just happen to be that group! HAHAHAHA!

    But seriously, All groups are not created equal. Not all groups have been around long enough to have this process dialed in. The natural next step for a successful Agency owner with 5m in WP is not aggregation. They fail too often and they fail their agents and their agents' families. Some have been around too long with no concept of how they are failing their agents. I always say a group should provide the following:

    1. Transparency
    2. Carrier alignment (Access to the carriers they need access to so they can execute their business plan)- Access the right way.....
    3. Training and support- because you got to get to the top of Everest and you need a few Sherpas!
    4. A killer contract

    Folks, don't have much time on my hands, but when you have questions and I have time, I love this topic. Reach out...…
     
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