Captive Vs Independent

[BShem08]

From reading through many threads it's appears that the overwhelming majority prefer going independent over being a captive agent. Why? What are the advantages and disadvantages?

 

[Sam Adams]

What is your experience level?

 

[PhilL]

BShem, Sam's initial question here is a key one. There are several factors in play, as to why agents on the Forums might give you thoughts as to why one choice might be better over another for you currently.

In addition to your experience level, in what State are you intending to sell? Also, for starters, what is your intended mix of P&C and financial type products? Do you have any sales specialties? If mostly P&C, what kind of mix - personal lines to commercial? Will you have a physical location?

Just a few initial questions for you.

 

[BShem08]

BShem, Sam's initial question here is a key one. There are several factors in play, as to why agents on the Forums might give you thoughts as to why one choice might be better over another for you currently.

In addition to your experience level, in what State are you intending to sell? Also, for starters, what is your intended mix of P&C and financial type products? Do you have any sales specialties? If mostly P&C, what kind of mix - personal lines to commercial? Will you have a physical location?

Just a few initial questions for you.

I have been in sales now for 2 years, with State farm. I sale all lines of insurance in PA. I sale a lot of personal lines P&C. That is where I'm best at. I have been working on getting my life and health numbers up. I am going to soon have my own office in a community south of Pittsburgh.

Thanks for your time

 

[TampaHound]

I'm a life guy and assume there are some slight differences between P & C and what I do. :P I'm also both "captive" and "Independent." Although I prefer the latter.

During the day I work for a call center where I am a captive agent. I have one or two "1 size fits all" products that I can sell and that's it. The good news is that product X will meet your needs and for many people that's all they want.

My big issue with that is that the "1 size fits all" product really doesn't. Often I have sold X to someone even though I know Y is a better product or Z is a better price.

BUT I CAN'T SINCE I'M CAPTIVE. Because I'm captive I can't tell them Y or Z is the way to go.

Now, at night working my own leads and my own contacts (I don't steal leads for several reasons), if X is the best product then I can sell X. If Y or Z is...then guess what I sell?

I like having options and the client does too. I've had people buy X because they know the name even though they know Y and/or Z is a better option. People buy what they are comfortable with and what they need. Our job is to make sure they have it.

 

[shawnmwalker]

• Higher close ratio (Better batting average)
• Higher Commissions (Better money on each policy you sell)
• Better Retention (Keep the client longer and make more residual income off that client)

One more- Much more Commercial opp as indy
BOR is earier as an indy
Better coverages....Captives will tell you different because they went to the Agricultural school...


That's why.


Disadvantages-

Tons more to learn. (Not too bad if you like learning and making money)
Hard entry into Indy.
Do your own marketing. (PAHHH! I have never called Geico or farmers because I like their ads)

 

[BShem08]

• Higher close ratio (Better batting average)
• Higher Commissions (Better money on each policy you sell)
• Better Retention (Keep the client longer and make more residual income off that client)

One more- Much more Commercial opp as indy
BOR is earier as an indy
Better coverages....Captives will tell you different because they went to the Agricultural school...


That's why.


Disadvantages-

Tons more to learn. (Not too bad if you like learning and making money)
Hard entry into Indy.
Do your own marketing. (PAHHH! I have never called Geico or farmers because I like their ads)

When you say hard entry. Do you mean financially or because the market is saturated?

 

[NSRH]

In my opinion, always start captive and learn on someone else's dime. Find a good local agency for the best support.

After you feel totally and completely comfortable with all aspects of the business, then it's time to CONSIDER going Indy.

 

[HoosierLife]

I guess it depends on the niche. Here's an article I wrote on the topic for Final Expense:

Captive vs Independent - LearningFE