Goosehead Insurance?

May 30, 2016

  1. AAfrank
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    AAfrank New Member

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    Hey, all.

    I'm a farmers agent and will be going independent soon

    I need some information on Goosehead. I've already looked into the business model so I'm good on that. Things I need to know:

    How much is the Franchise fee to get in?
    How's the commission structure on NB and renewals?
    Will they appoint you out of state? I have licenses in 10 different states.

    Thanks!
     
    AAfrank, May 30, 2016
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  2. agentinsouth
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    agentinsouth Guru

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    Why? I left captive and had no issues w/ appointments. This way is going from captive w/ one carrier to another captive company w/ a few more options. I left a captive company and 3 years later have more appointments than I need. Also, doesn't this group take 50% of the renewals? That is crazy!
     
  3. AAfrank
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    AAfrank New Member

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    I hear the same, but remember in the captive world, NB commissions are around 10-12% (with Farmers at least) and renewal commissions are 10%. With Goosehead they're structured at about 15-20% NB and same for renewals. So it'll be around 7-8% that I get.. Which is the same as what I get now.. EXCEPT it's scalable because all I focus on is selling. Service is non revenue time.
     
    AAfrank, May 30, 2016
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  4. agentinsouth
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    agentinsouth Guru

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    Just do the math of how long it will take to build a million dollar book and your take home w/ goose head, twfg, agent secure, Shawn's group on this form (don't know what his is call), & if you go truly independent. If you are dead set on being a captive-independent, I think Shawn's group has some sort of buy out.

    Last, these groups sell you that you own the book. It is a lie, you own the book within the confines of their organization. They really own the book because you are a sub-agent. I won't buy your book because I would have to join that group.

    While my option is well known that I believe these groups are bloodsucking vampires praying and the fears of someone trying to go independent - Shawn seams to be the most honest vampire... I would defiantly talk w/ him before making any decisions.
     
  5. indienoise
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    indienoise Guru

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    Any group will have a buyout. What you have to ask yourself is what is your biggest priority. What does a group like goosehead really offer? Do they have a dedicated service staff or something to justify such low renewals? And even if they do, is the client going to call their 800 number, or you? How do you handle those?
    Explore your options before committing though, because once you do, that's it there's no easy out. Talk to Shawn at pgi, call Terry at insurance pro agencies, heck call siaa or smart choice and just see what each offers and your compensation, benefits of joining, etc. Really, really think long and hard about whatever exit clause each one has - this is more important than you might think. Finally, talk to some carriers and see if they might appoint you - you might be surprised. I never ended up joining any group, and am doing just fine. Don't sell yourself short either, I WAY underestimated how much I would write - I've done more than twice what I initially expected when I first left the captive world.

    Whatever you decide, best of luck.
     
  6. agentinsouth
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    agentinsouth Guru

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    Actually most do not have a real buyout clause...I read 6 contracts :)
     
  7. FL P&C Broker
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    FL P&C Broker Guru

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    Who are the ones who don't?
     
  8. agentinsouth
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    agentinsouth Guru

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    A "real" buyout clause - I remember that TWFG, Goosehead, Agentsecure captive group, and one more did not
     
  9. indienoise
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    indienoise Guru

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    When you say not a "real" buyout clause, you mean simply not any option spelled out to leave with your book? I don't know if any who just let you off Scot free...well, not in my area anyway.
     
  10. Texasproducer
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    Texasproducer Super Genius

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    I don't know a lot about their fee and ownership structure but they guy who runs the whole organization is not someone I would choose to do any type of business with.
     
    Last edited: Aug 9, 2016
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