Companies going independent?

[charlie sr]

My son has expressed an interest in joining the insurance agent industry and although he has the smarts and drive I'll be paying the bills.. LOL? He has an in-law that recently bought an Allstate Agency for big bucks but just doesn't seem to be happy about it perhaps because of their requirements. My Son has been approved for Allstate but not sure, He's in contact with Goosehead and Brightway to see if that's a better fit for him. It seems that Nationwide and maybe others are moving towards an Independent model and if that's the future why not buy a Nationwide Agency? Although I'm not sure about it it seems like startups like Brightway and Goosehead have found a flaw in the current business model and Nationwide is responding? My Son is being courted by Allstate, Goosehead and Brightway but I'm trying to figure out where to put his time and my money into.. Just buy a Nationwide as it goes Independent? thanks Charlie Sr.

 

[Markthebroker]

I would strongly suggest your son work as an employee for a while before either of you goes off buying an agency.

To be perfectly blunt, going off and buying him an agency because he "expressed an interest" is ridiculous. This is a very complicated business with a high failure rate.

 

[JazzInk]

You're comparing very different business models. Allstate is different than a franchisor (like Goosehad or Brightway) which is different than an independent agency.

Listen to @Markthebroker

 

[Robert Barney]

I would strongly suggest your son work as an employee for a while before either of you goes off buying an agency.

That is an EXCELLENT bit of advice.

 

[Brokerlikeaboss]

Nationwide agencies are going to be hard to come by for awhile. Prior to the transition, there were programs put in place to encourage early retirements and mergers. There are also limitations on when/who they can sell to for several years after they go indy