Captive Agents Over 6 Figures?

[Rebel-without-a-clue]

Guys, I am just wondering if you all know of any CAPTIVE agents making 200k + out there. I keep hearing that independent is the way to go, but when I factor in office, supplies, marketing, and employees, captive seems like a good choice. BUT can really good money be made there?

So how about it, anyone know?

Don't have to name names, just some basic info. THANKS!!!!

James

 

[Bertolinoins]

Yes, there are plenty of established agents for all of the direct companies that are making $250K+. There are plenty making $500K+. The problem is that there are very few new, from scratch agents that are making any money.

The issue with the current contracts being offered by direct writers is that you don't own the business... you are basically renting the clients from the carrier so you have no equity in the book or say of who can buy the book of business. Essentially you are not an agency owner... you are renting a high paying job with all of the headaches that come with being a business owner.

An independent owns their book fo business and can sell to whomever they want at whatever price those two parties agree to. Indy's make good money as an owner... but the big money is made when you sell and retire. As an independent agency owner... I have to work with my carriers but I don't have a DM telling me what to do and I don't answer to anybody.

Looking long term... Indy is the much better option. Bite the bullett and make less in the first few years knowing that you can cash out at the end of it all.

 

[VolAgent]

You're asking the wrong question. I can rattle off a long list of names of people that are millionaires and billionaires. Just because they made their fortune in some manner doesn't mean you can duplicate that success.

The right question is, where will I be more successful? Will being captive or being independent help me be more successful? Why will being captive or independent help me achieve success?

If you want to see successful captive guys making 200K+, visit any MDRT conference or any captive's annual convention. They are all 100K+, and most are probably 200K+, but their success doesn't translate to your success.

 

[HealthGuy]

Captive agents making over 6 figures are some of the most arrogant douche bags I have ever met. They horde business and offer little to no help to the revolving door of newbie recruits.

 

[scrabble]

Captive agents making over 6 figures are some of the most arrogant douche bags I have ever met. They horde business and offer little to no help to the revolving door of newbie recruits.

Sounds like every MGA I've run across.

 

[Larry Tew]

Interesting thread. Having worked in both systems - even recently as a salaried trainer with a captive while still doing a good amount of personal production with an independent, I can tell you that your earning potential isn't dependent on whether you are a captive or independent. Both the captive and independent have a "compensation pie" that's about the same size. They simply slice it differently between commissions and benefits.

Owning your in-force business is pretty hard with the Captives. When I was at Guardian, there was no vesting of renewals unless you basically stayed there for life. I'm sure some of our Guardian buddies can tell us how the lack of renewal vesting is actually a good thing. On the other hand, owning a block of life insurance is only sellable for the equivalent of a few years worth of renewals.

I agree with VolAgent. It's not "which is better"... it's "which is better for you".

HealthGuy, I'm not sure I follow your point. What does an experienced agent in a captive system owe a less experienced agent? I find many older agents mentoring and working cases together with newer agents. Why would I just give business I worked for to someone else? That's like getting a burger at McDonalds and driving over to Burger King to pay for it. Did I misunderstand your post?

 

[HealthGuy]

I worked in a captive life "environment". The senior agents, one in particular, were know it alls, arrogant pricks. They sat in their corner offices and took ungodly splits from any of the newbies, which 97 out of 100 would be out of the office anyway in 6 months. This is what I am talking about. They didnt owe anybody anything and they sure acted like it. I made more money in my first month independently than I did with them in my six months as a captive. The captive agency system is a 1950s business model that is dying. Good riddance.

 

[VolAgent]

I worked in a captive life "environment". The senior agents, one in particular, were know it alls, arrogant pricks. They sat in their corner offices and took ungodly splits from any of the newbies, which 97 out of 100 would be out of the office anyway in 6 months. This is what I am talking about. They didnt owe anybody anything and they sure acted like it. I made more money in my first month independently than I did with them in my six months as a captive. The captive agency system is a 1950s business model that is dying. Good riddance.

You ever think that maybe they got tired of seeing the revolving door? It could be they just got burned out on working with the newbie of the week. They probably figured they would wait around and see who stuck before taking any real interest in a new agent. I'd say the current recruiting system is hurting them just as it hurts the new guys. Only difference is that it doesn't hurt them as much.

 

[Larry Tew]

I worked in a captive life "environment". The senior agents, one in particular, were know it alls, arrogant pricks. They sat in their corner offices and took ungodly splits from any of the newbies, which 97 out of 100 would be out of the office anyway in 6 months. This is what I am talking about. They didnt owe anybody anything and they sure acted like it. I made more money in my first month independently than I did with them in my six months as a captive. The captive agency system is a 1950s business model that is dying. Good riddance.

As with many things, when it comes to experiences with captive companies, "Your mileage may vary". I have history in both models and see value in both - but again, the situation is the boss. One person's experience isn't everyone's experience. Most successful independents got their start with a captive. There are fewer and fewer companies bringing in newbies, and that is a very expensive venture.

It sounds like you made the right choice for you.

 

[joshril]

There are definitely some solid captive opportunities out there. I knew a guy that was a long-time NYL agent that was making well over 6 figures.

It's just like on the independent side... Some people are making it and some people aren't. As someone mentioned above, either way you go, your mileage may vary.