Captive To Independent, How Is It Done.

Jan 11, 2009

  1. Agent5913
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    Hi guys,

    Ive been a captive agent for one year with a company and have been very successful. Without getting into too much detail, how would one move to the independent side of the business? My company is great and very family oriented but there are some things that I do not like and I just dont know if I can do it for the rest of my life. I like the insurance business and based on my numbers, I can do it.

    My company pushes life and tons of it. If you dont sell it, your history. It does not matter if you are a first year or 30 year agent, you will sell it and sell tons or you are history.

    I just dont like that feeling that if I dont produce a certain number that I will be terminated.

    What are some options?

    I would like to keep my company unmentioned please. Thanks.
     
  2. Mark
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    Mark Guru

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    IF you already know how to sell and sounds like you have the skills, then go independent. Be your own boss.

    All you need to do is to find an IMO and call them and see what all then can offer you.
     
    Mark, Jan 11, 2009
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  3. SportsNut
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    So you don't like (pushing) selling life. What product / market do you prefer to specialize...? What is your goal / target income...?

    Financially, it does take some $$$ to go independent, as you will give up your weekly draw or salary. Depending on what market you plan on working, and the way you plan on acquiring leads, will determine how much seed $$$ you need for marketing. Add this to two, maybe three months of living expenses (minimum), and you are ready to roll. If you don't have the capital to do so, then you aren't quite ready to leave the stable.

    Let me add that contracting with an FMO is not problem. There are many good ones on this site, so you should be able to easily find the right spot for contracting. Lead time for contracting is a few weeks, with most carriers. This may violate the terms of your captive contract, whcih could end things abruptly. Their policy will dictate this timing and if there is any way to transition softly. Most won't allow this, but I am no expert on captive, as I have never been, except by my wife.
     
    Last edited: Jan 11, 2009
  4. Agent5913
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    So you don't like (pushing) selling life. What product / market do you prefer to specialize...? What is your goal / target income...?

    I like it all. Even life. Just dont want to be forced to sell a certain amount/
     
    Last edited: Jan 11, 2009
  5. SportsNut
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    Yes, but... but what...? If we know exactly what the "but" is, there are loads of answers.

    Are you saying that you don't know what market you wish to work, or you don't know how to get contracted with an FMO...? Big diff. And if you truly don't what product or game plan to work, then maybe you aren't ready to go indy, just yet... There are worse things than being captive.... like being indy w/o a game plan, or leads, or enough $$$ to survive until the next comm check... Way worse.
     
  6. Agent5913
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    Im not making the switch tomorrow or anything:biggrin:. I can sell anything. My company is truly Multiline and we have to sell well rounded. Life,Auto,Home,Auto,Health,Fire,GL etc.

    I just have no idea what a FMO or KMO even is. It wouldnt matter to me if I targeted Life, health,auto or Fire, I like it all.

    I have a pretty good size family and Id like to work from home. I have a game plan as far as what Id like to do and $$$ to cover me for a little while until I get rolling.

    Just asking some questions.

    Thanks.
     
  7. SportsNut
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    As an independent agent just starting out it may be difficult to offer all lines... usually your casualty cos require x production, and with your thin experience they aren't likely to grant you a GA contract. You will find that there is more $$$ in life and health products on the front end, as opposed to p&c that may have more upside over time due to renewals if you write good biz... Of course I am not a p&c guy, so others can offer you better input on that...

    So if you went indy and bought some leads or developed good leads on your own, you should be able to make a good living with life and health... market one, usually health, and have life as an add-on sale... many follow that approach and make the BIG bucks... (everyone has a different idea of what qualifies as big bucks as well as each having varying degree of expertise and motivation, from which to attain same). With all things being equal, a six figure income is well within reach following proven methods, while attaining street level contract from FMO's for life and health products.

    "I just have no idea what a FMO or KMO even is".

    FMO is a Field Marketing Org... they will usually have a GA or MGA contract with multiple carriers, speaking life and health products mostly. You will contract through them, receive sales support from them for the products that you offer thru them... It is not uncommon for Agents to deal with two, three or more FMO's... One may offer life products, but not health... Another may specialize in health, as their bread and butter.

    Many here will tell you that when you shop for FMO affiliations, it is best to deal with those that will grant you an unconditional release, if you decide to go elsewhere... for better cut of the deal, or service or the fact that you just don't feel are being supported as you expected. This way you aren't stuck with a bad fit, if you determine it to be so as you get more experienced.

    There is a thread marked Sticky for FMO... (or something like that). Do some surfing around the site and you will find it. Suggest you spend some time reading there and you will pick up more on some of the subject there... when better versed on the subject, you will have more Q's, and come back and ask more... Always someone to help around here.

    FMO's - Life Ins

    Health Choice One - Health FMO
     
    Last edited: Jan 11, 2009
  8. Agent5913
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    Thanks alot for your time. I have no choice but to stay put for a while, maybe another year but I just dont see me working like this for the rest of my life. In the office pounding the phones mon-Fri 8-5 and then in someones living room 3 nights a week till 9.

    Our company says that we are self employed but boy when you dont show up at the office at 8 am your cell starts ringing.

    Again, thanks, Ill look into this. Seems like alot.
     
  9. hlink20
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    hlink20 Super Genius

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    Obviously you are a confident individual and you identify that you have been a successful agent. The next and natural step would be for you to contact with carriers directly and begin growing your own block of business. Best wishes.
     
    hlink20, Jan 22, 2009
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  10. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    Gina, do you have some specific experience or background that would lend any veracity to your posts, or are you just on here tryin' to sell us something?
     
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