Captive Owner Opportunity vs Commercial Producer Opp

[Ollopa77]

Hi all! Brand new to this forum.
I’m at crossroads and because I don’t have enough experience to aid in determining the long term financial outlook and success of either decision I’m seeking some advice.

I’m currently selling P&C and Health & Life, have plans to go the captive agent route with this carrier, but I’ve recently been approached by a commercial brokerage who wants me to come onboard with them asap and I now I have no idea what I’m doing anymore.

I’ve heard the wild success stories and headlines from both sides of the business: “Captive agent builds $12mil book over 15 years and retires at age 50!” or “Commercial producer makes $400k from renewals alone in year 5 and after making partner retires at age 50!”

I want to know what the pitfalls are because no one ever talks about those. Am I thrilled at the prospect of meeting mandated captive agency metrics every year and not truly operating the agency how I want? Not really. Do I think the captive route is an amazing opportunity that has the potential to change my life if I work my butt off for it? Sure. Are $400k years uncommon on the commercial side? Absolutely not. But will I enjoy not “owning” and operating my own thing in lieu of the potential massive amount of money I COULD make?

What are the averages here? What are the real expectations? If I jump ship from the captive agency ownership program I don’t get another shot later. If I don’t take this commercial opportunity I don’t know if or when I’ll have another one.

Give me some stories, please. Right, wrong, good, bad, and indifferent because I need to be able to see the big picture.

Thanks!

 

[marindependent]

currently selling P&C and Health & Life, have plans to go the captive agent route with this carrier, but I’ve recently been approached by a commercial brokerage

So you are currently agent selling Commercial P/C plus Health and Life and are planning on doing this as a Captive Agent moving forward but now have the opp to go work for an "Independent"{?} commercial brokerage instead?

 

[Ollopa77]

I apologize for my lack of clarity. I’m selling personal lines for a captive agent with the real possibility of signing a contract and accepting an agency ownership/assignment with them in the next 6 months.

The commercial lines opportunity is for a brokerage in which I wouldn’t own or operate any part of the business, just produce business for them as an employee, strictly on the property side of the business. I wouldn’t be involved in group benefits or anything of that nature.

 

[marindependent]

I am a big fan of the independent model, but on the Personal Lines side. So much more to offer, if you can make the jump.

But there are two different considerations here:
1. Personal Lines to Commercial Lines and
2. Captive vs Independent

You may want to get @Markthebroker on here get his two cents. Don't let his cape fool you.

This all might come down to the contract and benefits that you are able to receive.

Best of Luck

 

[Markthebroker]

I apologize for my lack of clarity. I’m selling personal lines for a captive agent with the real possibility of signing a contract and accepting an agency ownership/assignment with them in the next 6 months.

The commercial lines opportunity is for a brokerage in which I wouldn’t own or operate any part of the business, just produce business for them as an employee, strictly on the property side of the business. I wouldn’t be involved in group benefits or anything of that nature.

I think there is a lot more future in commercial lines than personal lines overall. To a large extent personal lines is, and will continue to be commoditized and go to the internet. For a number of reasons, that is and will continue to happen in commercial, but to a lesser extent. The money is bigger, but so is the learning curve and failure rate.

There are pluses and minuses to each opportunity, but overall I'd say the captive ownership is the way to go, considering business ownership carries it's own risks too. Commercial in general is a better opportunity, but there is a lot to learn, plus your opportunity is property only, and you're an employee, so there is a lower ceiling.

That's my 2cents.

 

[shawnmwalker]

I like the commercial Producer opp. I like IA ownership.

 

[Markthebroker]

I like the commercial Producer opp. I like IA ownership.

The commercial producer opportunity isn't IA ownership. The ownership is captive, and the IA is employee.