- 5,501
What's a starup?
New Agency Starup
- Thread starter KARLA LOPEZ
- Start date
- 30,537
- 2,377
Its a Startup with No T, just Coffee.
- 5,501
Ah, I get it. Kind of like when I swim laps in my ool. It's like a pool, but it doesn't have "p" in it.
- Thread starter
- #15
KARLA LOPEZ
New Member
- 8
Hi there, thanks for the feedback, however not sure what you mean about Cluster what is that? and MGAs I am assuming you are talking about Insurance Carriers?
Kinda like jogging, or maybe it's yogging it's a silent j, but apparently you just run, for an extended period of time. It's suppose to be wild!
Matthew Labb
Expert
Clusters, aggrregators, networks... they all help you get access to carriers.
As already pointed out, you are in a very hard market in CA. FL and CA are the most difficult markets in the country.
You'll need to align with a network that can provide you some market access (carriers)
Without market access, you don't have a product.
I talk with agency owners from all over the country daily, and they are all having a difficult time finding carriers to write with. CA is considerably more difficult than most other states.
All networks are different... I recommend you ask these questions to any network you talk with.
- Do you have a good carrier mix across the lines of business I want to use in my agency?
- Are those carriers competitive in my region specifically?
- Do you have any production requirements?
- Do you provide an agency management system?
- Do you provide a comparative rater(s)?
- Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
- Do I need an office or may I work from home?
- What if I am new to Insurance, is that ok in your network?
- Do you have any exit fees?
- Can I sell my agency at some point?
- If I sell my agency, do you take a cut?
- Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
- How long is my contract for, and do I get ownership right away, or over time?
- What are the startup fees and are you willing to work with me if I need to make payments?
- What is the commission rate/split?
- What is the criteria for participation in the contingency bonuses (if applicable)?
- When there are overrides and incentive bonuses do we get any of those while in your network?
- Do you have a cap on the commission split or do you take your split forever?
- Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
- Are you open to me contacting some of your member agencies before I sign the contract?
- Are you open to me contacting some of your carrier reps before I sign the contract?
- May I have an attorney, or third-party consultant review my contract with me?
- How much industry experience does your network leadership have?
- Has anyone in your leadership had experience in running an independent agency?
- Does anyone in your leadership have any carrier experience/background?
- May I contract with other carriers outside of your network?
- How long have you been in business and how many agencies do you have in your network?
- Define ownership.
- How does your agency network make money?
- One of the most important things someone can do other than reading the contracts of many networks is to speak to the owner/CEO/president of each network to get a feel for the culture. If you find they don't have the time to talk to you... message me your contact info and I will make time for you.
- Thread starter
- #18
KARLA LOPEZ
New Member
- 8
Thank you this helps a lot 
Matthew Labb
Expert
Thank you this helps a lot
no problem!
Mike Hodges
New Member
Karla, Feel free to reach out to me. [email protected]. I can assist you.
Similar threads
