Goosehead Insurance?

[A_Jonesyall]

A few questions

1. If I franchise with Goosehead how much revenue am I likely to make each year? The investor presentation says $60k on new business but what will the average renewal amount be? For my book it would be $30k on renewals but wondering what other people's book looks like...

2. If I'm going to make $90k in revenue each year does it make sense for me to consider this? I'd have to pay $60k to get in and then I'll have overhead of another $25k each year and my net $65k per year will be less than I'm making now.

3. Goosehead looks like they are opening everywhere. Do franchisee's get bothered by this? Are these new agents taking your share?

4. Will I get better pricing on my policies if I join Goosehead? I know they have alot of scale so maybe they can negotiate better rates for my clients?

 

[BADTROUT]

A few questions

1. If I franchise with Goosehead how much revenue am I likely to make each year? The investor presentation says $60k on new business but what will the average renewal amount be? For my book it would be $30k on renewals but wondering what other people's book looks like...

2. If I'm going to make $90k in revenue each year does it make sense for me to consider this? I'd have to pay $60k to get in and then I'll have overhead of another $25k each year and my net $65k per year will be less than I'm making now.

3. Goosehead looks like they are opening everywhere. Do franchisee's get bothered by this? Are these new agents taking your share?

4. Will I get better pricing on my policies if I join Goosehead? I know they have alot of scale so maybe they can negotiate better rates for my clients?

1. If I franchise with Goosehead how much revenue am I likely to make each year? The investor presentation says $60k on new business but what will the average renewal amount be? For my book it would be $30k on renewals but wondering what other people's book looks like... To open a business, where I am being sold a year one revenue equivalent to my buy in would be enough to raise an eyebrow. This goes for any franchise model... Does the name and network give you that unfair advantage like a McDonalds would in the fast food world versus your own name?

2. If I'm going to make $90k in revenue each year does it make sense for me to consider this? I'd have to pay $60k to get in and then I'll have overhead of another $25k each year and my net $65k per year will be less than I'm making now. Investing in yourself upfront does mean you will lose money your first year in just about any network or franchise model.

3. Goosehead looks like they are opening everywhere. Do franchisee's get bothered by this? Are these new agents taking your share? This would have to be answered by them, but as a general rule of thumb an indy agency is as good as their carriers are... if there is one every 10/th of a mile, and all things are equal, you better have the best parking lot, the coolest name & personality, and the best service to outshine every other one.

4. Will I get better pricing on my policies if I join Goosehead? I know they have alot of scale so maybe they can negotiate better rates for my clients?[/QUOTE] Rates are filed with the state by the carrier, the agency or distribution channel will have little if any advantage over the next guy down the street offering the same thing from the same carrier.

I hope this answers your questions. Keep reading the forum here and I think you will see arguments either way... but at the end of the day, if you cant use your agency name, you have to pay to buy in, pay to get out, have non-competes etc etc Are you even an independent agent at that point?

Side note... feel free to send me 60K... no wait... I will knock $10K off. I will fly out to wherever it is you are for a month, immerse you in my 20 years of experience, get you carrier access. I will even pick up lunch every day AND pay you 80 or 90% commission on top of that.

 

[BillIAm]

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!

How large have you grown your agency in 3 years? Do you have employees? Have you been able to keep all those appointments with carriers? I'm wondering how difficult it is to start independent from scratch?

 

[BillIAm]

I would like to know from all you independent agents that continually bad mouth every partnership because you make so much less money, how it has been building your own agency from scratch? I assume you are at least 10 million or more? How much did you build a year? 1 million?
I was here back in 2011 when all you guys said run, run away from Allstate. Never do it and so forth. Well I bought, built, and sold in 5 years and made a big chunk of change. Now prove to me that you could do that as an independent. You can't.
Yeah in a perfect senerio looking at numbers it would be great to be totally independent and not share commission with anyone. Hell just be the carrier they make the most! 50% of 1 million is a lot better than 100% of $250,000.

 

[BADTROUT]

I would like to know from all you independent agents that continually bad mouth every partnership because you make so much less money, how it has been building your own agency from scratch? I assume you are at least 10 million or more? How much did you build a year? 1 million?
I was here back in 2011 when all you guys said run, run away from Allstate. Never do it and so forth. Well I bought, built, and sold in 5 years and made a big chunk of change. Now prove to me that you could do that as an independent. You can't.
Yeah in a perfect senerio looking at numbers it would be great to be totally independent and not share commission with anyone. Hell just be the carrier they make the most! 50% of 1 million is a lot better than 100% of $250,000.

There is more to the story than that...

How long will it take you to get to contingency? Alone... maybe never... or years at best.
How much is contingency worth? Varies, but typically I get an extra 3% to 5.5% kicker at the end. So...

ALONE: 100% of 15% Commission on 100k premium is: $15,000
NETWORK: 90% of 15% Commission on 100K premium is: $13,500

Sucks right? Nope... With the network, even if you only get half of the contingency at lets say an average of 4% means you will better than break even with what you would have gotten on your own. In this case, it would be $15,500

The best part is there are networks that pay more than half of the contingency. At Horizon we pay 3/4 of it to the agency. So the total would be $16,500

So yes you can do better or worse... for me I have to look at how much more could I be closing with a better selection of what I would have had on my own. The saddest part of this is that many people already in networks I am finding out have never heard or had explained what contingency even is.

Get a better network...

 

[shawnmwalker]

Some Insurance agencies want to Sell 100% of the time. The idea of getting bogged down with endorsements and renewals and conversations that don't generate income, drive Hunters crazy!


Some agents want to outsource as many agency operational responsibilities as possible, so desperately, that they often turn to models or options in the marketplace that offer the solution.... but at what cost?


Up until now, those models have historically locked an agent into a contract where service work is typically outsourced to a group's headquarters for the duration of the contract. The Cost (historically) for this luxury came with the heftiest of price tags- the most sacred and holly thing an Independent insurance agent has….the renewals!


With Independent agents in mind, Premier asked how this option could be brought to Independent Insurance agents in a better brighter way or without killing the golden goose.


What if you could outsource your service work without locking into a service center for the duration of your contract or relationship?

What if you could participate in the service center without having to sacrifice significant renewal income, indefinitely?

The only options that historically existed:

• Contractually locked you in their service center, forever!
• Took 50% of your renewals, forever!
• Serviced your clients with an endless supply of newly licensed agents in the industry that repeatedly fumbled with your clients
• Redirected your agencies service work to the carrier service centers for a fee that is dramatically less than the 50% of renewals you are paying.

Premier has created a program that gets to the heart of these inherent, historical problems. Disruptor is an understatement at this point. We want to show you an option that allows you to opt into the service center without locking in for the entirety of your contract and without giving up your sacred renewals.


Its what the industry has desperately needs…an option that will challenge the status quo as it relates to Group provided Service Centers.