Questions to Ask Before Joining an Agency Cluster or Alliance

[AgencyEquity]

Affiliating with a group is a huge decision, there are over 100 groups out there that provide markets (including direct appointments), profit sharing, and much more. Each agency has very different needs and each group is different. I put together a list of questions that you anyone becoming a part of a group should ask, you can find this list at http://www.agencyequity.com/questions_agency_cluster_group

 

[Mark]

You are one of the groups right?

Do you recommend that we use you?

 

[Guest]

blah blah blah.

 

[Frank Stastny]

Affiliating with a group is a huge decision, there are over 100 groups out there that provide markets (including direct appointments), profit sharing, and much more. Each agency has very different needs and each group is different. I put together a list of questions that you anyone becoming a part of a group should ask, you can find this list at http://www.agencyequity.com/questions_agency_cluster_group

Your list of questions is good, however, you kind of "skirt" the issue of assigned commissions. You kind of explain it in different ways.

For an agent new to insurance who really doesn't understand the full implication of assigning commissions I think you owe it to them to tell them, in plain language, what it really means.

Just my two cents and experience in talking to agents who have done so and really didn't understand what they did and the full meaning of having done so.

 

[liquidgraph]

Does anyone have a list of all those 100 groups?

 

[AgencyEquity]

You are one of the groups right?

Do you recommend that we use you?

I am not one of these groups, also it's not a matter of using a group, but more so which group will accept your agency.
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Does anyone have a list of all those 100 groups?

It's on my website, look for clusters and alliances on the menu.

 

[AgencyEquity]

Your list of questions is good, however, you kind of "skirt" the issue of assigned commissions. You kind of explain it in different ways.

For an agent new to insurance who really doesn't understand the full implication of assigning commissions I think you owe it to them to tell them, in plain language, what it really means.

Just my two cents and experience in talking to agents who have done so and really didn't understand what they did and the full meaning of having done so.

I would not recommend anyone who is new to insurance to become a member of one of these groups because I would not recommend starting an agency given you are so new to the insurance industry. There is just so much to learn about this business and about the products before it's worth the risk to invest your own money to start an agency. This is why my questions are geared towards those who know the business, nevertheless it's good you brought up the question because this allow me to clarify that it's very important to have experience doing this on your own. One exception to this may be if you were going to start up with a direct writer, the difference with them is that they provide training and their programs are geared towards those who have not been in the business.

 

[Frank Stastny]

I would not recommend anyone who is new to insurance to become a member of one of these groups because I would not recommend starting an agency given you are so new to the insurance industry. There is just so much to learn about this business and about the products before it's worth the risk to invest your own money to start an agency. This is why my questions are geared towards those who know the business, nevertheless it's good you brought up the question because this allow me to clarify that it's very important to have experience doing this on your own. One exception to this may be if you were going to start up with a direct writer, the difference with them is that they provide training and their programs are geared towards those who have not been in the business.

That was a well written answer but what does any of that have to do with an agent assigning commissions? That is the question I posed to you.

You still didn't address assigning commissions but did talk about an agency. I'm not sure what the correlation is.

Do or do you not require agents to assign their commissions?

 

[VolAgent]

That was a well written answer but what does any of that have to do with an agent assigning commissions? That is the question I posed to you.

You still didn't address assigning commissions but did talk about an agency. I'm not sure what the correlation is.

Do or do you not require agents to assign their commissions?

Not sure you can easily get around it in P&C. Its a very different world than Med Supps.

 

[Frank Stastny]

Not sure you can easily get around it in P&C. Its a very different world than Med Supps.

Duh, my bad. Boy is my face red.

Guess I missed the part where it pertains to P&C.

Sorry AgencyEquity.