Need some Professional Advice

[Longtimelurker]

I feel personal lines is exponentially easier to do part time than commercial lines.

Like you, I wouldn't want to hire a part timer to insure my business. Why? Commercial lines is complicated and sometimes requires time sensitive communication.

I think you've got the right idea here.

Now the question becomes, do you want to work for yourself or someone else?

100% myself. Just teying to figure out the best route to do it. Franchising is best training, quick appointments, proven system etc. but comes with a heavier price tag.

 

[Matthew Labb]

Got ya! Yeah, some of the franchises/networks will want as much as 50k to get things started.

That's a hefty price tag for certain.

You should look at multiple networks and contracts before moving forward with one.

I would say narrow it down to the three best contracts, and then show an attorney.

I did that when I started my agency! No shame whatsoever in that game!

I do business development for a P&C network based out of Colorado. We're called Horizon Agency Systems.

We'd love to be one of the five networks you evaluate. If not, no hard feelings...I still want to offer this to you, and I'll look forward to seeing your posts on the forum.

Here's a list of questions to ask any network you talk to.

Ask every single one! If they can't give you straight answers... ask yourself why!

1. Do you have a good carrier mix across the lines of business I want to use in my agency?
2. Are those carriers competitive in my region specifically?
3. Do you have any production requirements?
4. Do you provide an agency management system?
5. Do you provide a comparative rater(s)?
6. Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
7. Do I need an office or may I work from home?
8. What if I am new to Insurance, is that ok in your network?
9. Do you have any exit fees?
10. Can I sell my agency at some point?
11. If I sell my agency, do you take a cut?
12. Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
13. How long is my contract for, and do I get ownership right away, or over time?
14. What are the startup fees and are you willing to work with me if I need to make payments?
15. What is the commission rate/split?
16. What is the criteria for participation in the contingency bonuses (if applicable)?
17. When there are overrides and incentive bonuses do we get any of those while in your network?
18. Do you have a cap on the commission split or do you take your split forever?
19. Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
20. Are you open to me contacting some of your member agencies before I sign the contract?
21. Are you open to me contacting some of your carrier reps before I sign the contract?
22. May I have an attorney, or third-party consultant review my contract with me?
23. How much industry experience does your network leadership have?
24. Has anyone in your leadership had experience in running an independent agency?
25. Does anyone in your leadership have any carrier experience/background?
26. May I contract with other carriers outside of your network?
27. How long have you been in business and how many agencies do you have in your network?
28. Define ownership.
29. How does your agency network make money?

 

[Longtimelurker]

Can you PM me? Or send me your email address.

 

[Matthew Labb]

Can you PM me? Or send me your email address.

Sure just did!

Talk with you soon

 

[EugeneM]

somewhat agreed. Hard to jump jobs in finance (mentally) right now as I have a huge amount of job protection if the real poop hits the fan.

I can see your recommendation for the money piece if it and totally agree. The problem is that even when the Fed was killing the market, I was just bored and really have no fire left. I’m burnt to a crisp and going through the motions. No more a challenge and no more a fire for what I do. Going through the motions is not really something I want to do for the next 15 years until retirement.

But a good suggestion nonetheless

I feel that. Going from commercial banking/real estate into personal p&c is hard for me to imagine. Two different animals and one is much harder than the other. I would think an agency would want to hire you that specializes in property insurance? To get access to your network. They could probably give you a decent agreement and train you.