Captive -vs- Independent Captive?

[myinsurebiz]

I get the "captive" market - basically a "job" with potential. Amenities provided. Leads provided. All the tools needed to make money. Stable, etc . . .

I love how our industry allows someone to be Independent and still have Amenities and Leads provided, without having a "job" . . .

 

[HoosierLife]

This topic keeps coming up!

Captive vs Independent - LearningFE

 

[shonceman]

This topic keeps coming up!

Captive vs Independent - LearningFE

Good, brief, overview.

I'll make one adjustment, though. I realize you're mainly addressing captive agencies with up and down lines, not a carrier with a captive agency force. But the discussion should include that type of situation also.

I've been a captive with a carrier 3 different times in my career. It's not uncommon in those companies for agents to be promoted up the management ladder and back down. So, I've had several former managers working under me as agents at various times in my career. In my last captive company, I stepped down from management for personal reasons and went back to personal production under one of my former agents.

In that type of corporate setting, it's a lot less like a pyramid scheme than the "team building" agencies you're addressing. But I've been independent for the past 14 years, and I can't see myself ever going back to any type of captive situation. If an opportunity "smells" even a little bit captive, I'm running the other way! (Including what @myinsurebiz just called "Independent Captive")

 

[HoosierLife]

I should probably read that article again. I wrote that that thing 3 years ago I think. I might not agree with everything I wrote back then lol.

 

[Newby]

Here is another version of it. What NOT To Do

 

[titeye]

Independent captive simply means you're comp'd via 1099, instead of W-2, and prohibited from selling any other carrier's product. Nothing more, nothing less. Any benefits offered or the lack thereof does not change these facts. The IMO can claim all day long that they are not a captive outfit. However, the organization's environment and culture alone will tell you immediately whether they are captive, if not deceptively so.
If you're buying leads from the IMO who says you're not captive, think again. Will you not be pressured to sell through their carriers only? Of course you will. It's how they earn money. The funny thing is, many of them claim they are not "in the lead business".
The fact that they "sell leads", by definition means they are in the lead business. Whether they profit on the sale of leads or not is irrelevant. Why are they in the lead business? The leads are the bait to incentivize you and/or make you feel obligated to place your business with them. As a result, they hope to profit indirectly from being in the lead business. However, I've yet to find an IMO who sells leads for less than what an agent can get directly from a bona fide lead vendor. So, help me understand the benefit to an agent who buys leads from their IMO, instead of their lead vendor of choice directly.

 

[myinsurebiz]

I consider the One Life America Career Agent program to be "Independent Captive" . . .

Meaning - all your contracts must go with One Life America in exchange for an abundance of quality Leads each week, training, support, incentives, etc.

You can have contracts with many Carriers. You can work your own hours, decide which Carrier to place the Client with and have the freedom to be independent.

You aren't stuck in a cubicle all day or limited to writing for only a specific Carrier.

Being captive isn't a bad deal in many cases. In my personal opinion - being Independently Captive works for many Agents too.

If the Career Agent program isn't for certain Agents, they can participate in our Broker Program if they wish. It's totally Independent and the Agents still have access to training, support, incentives, etc. One Life America offers several opportunities for someone to make money in the Insurance industry.

 

[myinsurebiz]

So, help me understand the benefit to an agent who buys leads from their IMO, instead of their lead vendor of choice directly.

Some IMO's create their own Leads so their Leads may be of higher quality and more readily available for purchase on a consistent basis.

IMO's that also provide Free or Subsidized Leads deserve to have the Agent's contracts through them to offset the cost.

There are a multitude of IMO's to choose from to make money in this business. Pick one and start seeing the people . . .

 

[titeye]

Some IMO's create their own Leads so their Leads may be of higher quality and more readily available for purchase on a consistent basis.

IMO's that also provide Free or Subsidized Leads deserve to have the Agent's contracts through them to offset the cost.

There are a multitude of IMO's to choose from to make money in this business. Pick one and start seeing the people . . .

I understand what you're saying, but leads are NEVER free. Allow me to explain. There is a guy that leaves a message on my voicemail no fewer than once every quarter stating that he's been given $150,000 marketing budget to put towards the success of new agents. He goes on the

 

[titeye]

Some IMO's create their own Leads so their Leads may be of higher quality and more readily available for purchase on a consistent basis.

IMO's that also provide Free or Subsidized Leads deserve to have the Agent's contracts through them to offset the cost.

There are a multitude of IMO's to choose from to make money in this business. Pick one and start seeing the people . . .

I understand what you're saying, but leads are NEVER free. Allow me to explain. There is a guy that leaves a recruiting message on my voicemail no fewer than once every quarter stating how he's been given $150,000 marketing budget to put towards the success of new agents. He goes on to state that the budget will be applied to provide the new agent free leads. I mistakenly answered the phone once before when he called. Since he caught hold of me, I figured I'd entertain him. I asked him at what commission level would a new agent start. He either said 50% or 70%, I forget which exactly. I said to him, "Well, the leads aren't free after all, are they?" He had no clue what I was talking about.