Should I Stay Captive or Go Independent Please Advise

karinah

New Member
2
I have been captive agent for over 7 years. I make around 100k. Lately I noticed that I am loosing clients due to rate. Should I go independent? My income will be less?
 
I have been captive agent for over 7 years. I make around 100k. Lately I noticed that I am loosing clients due to rate. Should I go independent? My income will be less?

Independents have a wider range of products, lower rates and make higher commission %'s.
 
The question I have been asking myself for ...ehh.... 6 months .

My main worry is finding people to sell to . I get leads now for free but I'm at a 50% commission :/ .

Honestly .... The leads aren't the best but I don't have any other prospecting training or lead system .

I know this is not an answer but I figured I'd jump on with part of my experience .
 
Stay captive if your contract allows, while developing other product lines/incomes that do not conflict (health, life, commercial). Then go independent when you have enough income to make the transition. Get all of your appointments direct if possible. Only join cluster as last resort if you really need an appointment and can't wait until your agency is large enough to obtain direct appointment. Much easier to sell/close sales as an independent with more options to meet client needs...and retention rates higher.
 
I agree with Jim; because of contractual obligation, you will probably have to deal with a non-compete clause in your captive contract. Check to see what restriction it puts on you as you get started on your own. See if it will obligate you to forego any production you accumulate while still captive. Basically, just be certain to cover every base you can imagine.
Can you go after those cases you lost while still captive? Kinda doubt it, but you can use those people as reference points for future sales; you can go back and get THEM once you are out of non-compete time span.
Will you make more money as an indy? Sure you can, but you can also make less. You will have more expenses for which you are responsible, and you will be building from scratch, no book of business. While those are cons, you have a major factor in your advantage - you have done this before, you just did not get paid at the same level. Expect a first 18 - 24 month drop in pay from what you are used to (just cautionary - you are capable of producing at a level that makes it a moot point), learn about the added responsibility that comes with being an indy, and have fun doing it. It can be done; I do it every day!!! Luck to you!
 
Being fresh in the process, I can tell you it is not easy peasy. I planned to wait til i could buy a book or agency before taking the plunge, but got tired of building a book i didnt really own. Don't take for granted the markets your captive carrier will write. It is not that way in the independent world, where before i could choose my niche and have free access to business that i would write just incidentally or occasionally. I still would like to be able to, but doubt my ability to pruoduce sufficient volume in all these categories of business, especially with multiple carriers. I'm too early in to guve any real guidance though. The choice to stay or go is yours alone, and there is no right answer.
 
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