Independent Needs Your Help.

[brwirt]

Thank you guys so much. I really appreciate you taking the time to add your input.
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argyle, good luck with your agency search. Here in Roanoke Virginia there is no lack of agencies to work for. Now if they are worth a grain of salt, not sure. But the broker I am working for apparently is open to anything to make his subs happy.

 

[Bertolinoins]

Perfectly said.

You can't expect me as an agency owner to offer a "newbie" a split of 70/30.

For me to offer someone a 70/30 split you've got to have 1. a ton of experience and 2. a lot of contacts. In other words; show me the goods and I'll show you the money.

People need to understand that commercial insurance is a business where you get rich slowly but you can work forever so your earning potential is huge. They focus on what they can make right now instead of finding a good situation that will allow them a huge life time earning potential. Sure... you can go out on your own and get a higher split but since you "don't know what you don't know" you spend a large percentage of your time chasing your tail on accounts you will never write. Even if you do wonder into a big account... chances are you are going to do something incorrectly and lose it. It takes 3-5 years to really learn this business if you are a quick study and have good teachers.

This isn't like real estate or mortgage where it is transactional and you can forget about it after the deal is done... your work has to stand the test of time because you may be in court 10 years from now explaining and defending the carrier, terms and conditions you recommended as a professional agent.

 

[argyle]

People need to understand that commercial insurance is a business where you get rich slowly but you can work forever so your earning potential is huge. They focus on what they can make right now instead of finding a good situation that will allow them a huge life time earning potential. Sure... you can go out on your own and get a higher split but since you "don't know what you don't know" you spend a large percentage of your time chasing your tail on accounts you will never write. Even if you do wonder into a big account... chances are you are going to do something incorrectly and lose it. It takes 3-5 years to really learn this business if you are a quick study and have good teachers.

This isn't like real estate or mortgage where it is transactional and you can forget about it after the deal is done... your work has to stand the test of time because you may be in court 10 years from now explaining and defending the carrier, terms and conditions you recommended as a professional agent.

That's exactly what I attracts me to this industry - that it is long term and not transactional.

I'm still searching for the IJ top 100 for 2009. Do I have to order that issue of the magazine?

 

[Bertolinoins]

That's exactly what I attracts me to this industry - that it is long term and not transactional.

I'm still searching for the IJ top 100 for 2009. Do I have to order that issue of the magazine?

Here you go.

http://www.anco.com/Insurance_Journal_Top_100_2009.pdf

 

[oicu812nbama]

One of the questions that he initially asked is important to me, too. I understand paying your dues but do agency owners expect you to walk away from your renewals if you want to leave? I'm not saying that this is wrong, I just don't know the etiquette. I've thought about working with a local agency instead of wholesalers, but I plan to move and won't be competition to the agency anyway. I have 2 years experience with commercial and personal. Just enough to get it done (while still learning of course) but not enough to get my own contracts since I was captive. Carriers want you to have 3 years experience and so much premium right? How do you get the premium if you have to walk away from what you wrote at the local agency? I know that I have an error in thinking about all this, can you pros tell me what it is?

 

[insurance123]

One of the questions that he initially asked is important to me, too. I understand paying your dues but do agency owners expect you to walk away from your renewals if you want to leave? I'm not saying that this is wrong, I just don't know the etiquette. I've thought about working with a local agency instead of wholesalers, but I plan to move and won't be competition to the agency anyway. I have 2 years experience with commercial and personal. Just enough to get it done (while still learning of course) but not enough to get my own contracts since I was captive. Carriers want you to have 3 years experience and so much premium right? How do you get the premium if you have to walk away from what you wrote at the local agency? I know that I have an error in thinking about all this, can you pros tell me what it is?

Absolutely agency owners "expect you to walk away from your renewals". I am an agency owner and you have to put yourself in my shoes. This is a business....not a charity. I'm not in business to help you start your business that is in turn going to be one of my competitors. If you want any chance of owning your own agency you have to start thinking like an owner.....not an employee (captive). Owners find a way to make it happen. Employees "expect" things to be handed to them. You are correct in that agency contracts are very difficult to obtain from scratch. Get $75,000, an impressive looking marketing plan and how and why it will work, and try to sell the marketing reps on why they should appoint you. All very good questions.

 

[oicu812nbama]

I see what you mean.I was going to learn in one city and move to another as far as competition. If I were an owner, I would offer a better split every year to retain producers. Then they wouldn't want to leave. How much does office space cost after all?

 

[moeasadi]

I see what you mean.I was going to learn in one city and move to another as far as competition. If I were an owner, I would offer a better split every year to retain producers. Then they wouldn't want to leave. How much does office space cost after all?

You really don't understand the overhead till you really open your office, It's not only rent and E&O.You need ability to manage that office even with couple of employees and producers.Management has its costs.

 

[insurance123]

Offer a better split every year? Where does that end? That all sounds great but you don't have the knowledge and experience yet to run an agency. You're on the right track and are asking good questions but there is a lot you need to learn. Don't make the jump too soon to an agency owner and end up failing out of the business. Arm yourself with the right tools first and then go for it.

 

[Bertolinoins]

I have a buyout built into my independent contractor agreements. They can buy their book after 3-5 years for 1.2-1.5X revenue anytime they want to leave and can round up the financing. I don't care if you want to hang out a shingle and do your own thing. If I am going to incubate your future agency then I expect a fair deal as well. You can use me... but it isn't going to be free.