SIAA Alliance for Independent Insurance Agents

[xrac]

Back when I started as a CSR in the P&C business (pre-internet) in 1994 opening a P&C agency was a breeze. All one needed to do was to get licensed, rent an office, call a few carriers to get appointed, put an ad on the Yellow Pages and walla – off you went.

Over the years the barriers of entry in the P&C industry have become harder and harder. Today it is right next to impossible for a new agency to become appointed with a national carrier. Doesn't matter how much money you have or how talented you are. Carriers are not interested in what you are going to do or how good your business plan is or the fact that you think you are going to sell 1 million dollars per month and set the P&C world on fire. The cold reality is the carriers want to know what you have already done.

Last week I was having lunch with a marketing rep and she told me on average she gets 15 calls per day from agents looking to get appointed. And she told me and I quote her "... most agents calling have the same story how they are going to sell a ton of policies but historically most fail so I just ignore 99% of the calls...".

Don't you just love posts like this that give you the problem but never the solution? In other words, say for example I came here and said that SIAA was the "kingpin or mobster" of the P&C industry and how terrible they are but then never gave you any alternatives - that would be just venting and not be of much help now would it?

My agency is almost 2.5 years old nearing 2 million in premium and can categorically say that without the SIAA carriers my BOB would probably be half of what it is today. Signing up with SIAA was the single best business decision I have made thus far. Is SIAA cheap? NO, but that's how they weed out the amateurs from the pros. And the carriers love this concept as well because it allows the carriers to study the agent before appointing the agent directly.

Do I wish I didn't have to pay up SIAA to get appointed with carriers such as Nationwide and Liberty Mutual, of course! But that's not an option. And trust me, in today's P&C environment an agency that does not have access to the top hitters will struggle for sure.

So if one is opening a P&C agency today, the options I see available are:

1) Sign up with a cluster or aggregator such as SIAA and pay their fee.
2) Sign up with a local agency that is willing to let you use their carriers and pay their fee via shared commission.
3) Buy into an agency which depending on the book and the appointments the agency has can cost quite a bit. But this is a very risky transaction in many aspects especially for someone that is new to the industry.
4) Struggle for years and years without the major carriers hoping you will make it past your third year.

So friends, unfortunately if you choose options 1, 2, or 3 you will have to pay someone something. There is no free lunch. In other words, you will have to pay a "kingpin or mobster" their "dues" or shall we call it the "fee to play in the game". Or of course going with option 4 is an option but trust me when I tell because I've been there, without the major carriers it will be a very tough going.



SIAA is not a cluster. SIAA is an aggregator. There is a difference there. And I couldn't be happier with my SIAA setup. Now there are a bunch of other aggregators and clusters out there. A friend of mine who also frequents this forum (Underwriter2agent) is setup with Global Green and he is happy so like most everything else, you have to pick what suits you best.

As far as getting out of the SIAA contracts, unless you have grown your agency to 20+ million dollars why would you want out of the contract and lose all the profit sharing and bonuses? That would be crazy!



My experience has been the opposite of what you are describing here. Now that I am approaching 2 million in premium it is making MORE sense than ever joining SIAA because now my profit sharing and bonuses from the carriers are kicking into high gear. And to be brutally honest, your post is completely incorrect. When my agency was just 1 million in size it cost me more to have SIAA than it does now. Because the bigger the BOB is the less money you will pay SIAA.

Also consider this, if you are paying $2,000 per month in fees to SIAA that would mean that your agency's gross revenue would be $20,000 monthly putting your total BOB at 2.4 million in premium. I will soon be at that 2.4 million in premium and can say I don't mind at all paying $2,000 to SIAA. Especially when you consider after paying the SIAA fee and the agency's expenses, I will probably be netting about $10k+ monthly NET into my pocket. And taking into consideration my agency is less than three years old, I think I can scratch out a living on that income.

Is SIAA right for everyone, no, of course not. But then again it goes back to the foundational question, if someone is not willing to:

1) Pay an aggregator or cluster to use their carriers,
2) Share commissions with a local agent to get access to his or her carriers or,
3) Buy up an existing agency

What are the other options?




Well, let's look at these numbers. If you partnered up with a local agency I am assuming you do know that that agent more likely will want a piece of your business too correct? Put it this way, if another agent came to me today and asked to use my carriers I would say no. Because why would I? I am already established. Plus, why add on the additional E&O risk you would bring me, doesn't make a lot of sense. But for argument's sake, let's just say that I played along and agreed to it, I would want AT THE VERY LEAST 25% of your commissions to cover my costs for E&O and etc.

Using this backdrop, let's just say you wrote a policy in the amount of $10,000 in premium through my agency and the commission the carrier paid out was 15%:

$10,000 Premium
15% Commission paid by the carrier
$1,500 Commission paid to my agency

Now take out my cut of 25% ($375) and that would leave you with $1,125 net. And even though you and I would have a written agreement that the business is yours, guess who really owns the business, you got it, me.

Now take these same parameters and use them assuming that you were signed up with SIAA. I can't give you the specifics but can say you would make more than $1,125. And guess who would truly own the business? Correct, you. So which option is better?

And to closeout, let's not forget that if you work the system right, very soon you would have direct appointments with the big hitters and how much value are those direct appointments worth? Well, priceless.

Hope this helps someone out there trying to decide the best path for their success!
Good luck.

Great post with tons of information!

 

[scooter33]

Back when I started as a CSR in the P&C business (pre-internet) in 1994 opening a P&C agency was a breeze. All one needed to do was to get licensed, rent an office, call a few carriers to get appointed, put an ad on the Yellow Pages and walla – off you went. Over the years the barriers of entry in the P&C industry have become harder and harder. Today it is right next to impossible for a new agency to become appointed with a national carrier. Doesn't matter how much money you have or how talented you are. Carriers are not interested in what you are going to do or how good your business plan is or the fact that you think you are going to sell 1 million dollars per month and set the P&C world on fire. The cold reality is the carriers want to know what you have already done. Last week I was having lunch with a marketing rep and she told me on average she gets 15 calls per day from agents looking to get appointed. And she told me and I quote her "... most agents calling have the same story how they are going to sell a ton of policies but historically most fail so I just ignore 99% of the calls...". Don't you just love posts like this that give you the problem but never the solution? In other words, say for example I came here and said that SIAA was the "kingpin or mobster" of the P&C industry and how terrible they are but then never gave you any alternatives - that would be just venting and not be of much help now would it? My agency is almost 2.5 years old nearing 2 million in premium and can categorically say that without the SIAA carriers my BOB would probably be half of what it is today. Signing up with SIAA was the single best business decision I have made thus far. Is SIAA cheap? NO, but that's how they weed out the amateurs from the pros. And the carriers love this concept as well because it allows the carriers to study the agent before appointing the agent directly. Do I wish I didn't have to pay up SIAA to get appointed with carriers such as Nationwide and Liberty Mutual, of course! But that's not an option. And trust me, in today's P&C environment an agency that does not have access to the top hitters will struggle for sure. So if one is opening a P&C agency today, the options I see available are: 1) Sign up with a cluster or aggregator such as SIAA and pay their fee. 2) Sign up with a local agency that is willing to let you use their carriers and pay their fee via shared commission. 3) Buy into an agency which depending on the book and the appointments the agency has can cost quite a bit. But this is a very risky transaction in many aspects especially for someone that is new to the industry. 4) Struggle for years and years without the major carriers hoping you will make it past your third year. So friends, unfortunately if you choose options 1, 2, or 3 you will have to pay someone something. There is no free lunch. In other words, you will have to pay a "kingpin or mobster" their "dues" or shall we call it the "fee to play in the game". Or of course going with option 4 is an option but trust me when I tell because I've been there, without the major carriers it will be a very tough going. SIAA is not a cluster. SIAA is an aggregator. There is a difference there. And I couldn't be happier with my SIAA setup. Now there are a bunch of other aggregators and clusters out there. A friend of mine who also frequents this forum (Underwriter2agent) is setup with Global Green and he is happy so like most everything else, you have to pick what suits you best. As far as getting out of the SIAA contracts, unless you have grown your agency to 20+ million dollars why would you want out of the contract and lose all the profit sharing and bonuses? That would be crazy! My experience has been the opposite of what you are describing here. Now that I am approaching 2 million in premium it is making MORE sense than ever joining SIAA because now my profit sharing and bonuses from the carriers are kicking into high gear. And to be brutally honest, your post is completely incorrect. When my agency was just 1 million in size it cost me more to have SIAA than it does now. Because the bigger the BOB is the less money you will pay SIAA. Also consider this, if you are paying $2,000 per month in fees to SIAA that would mean that your agency's gross revenue would be $20,000 monthly putting your total BOB at 2.4 million in premium. I will soon be at that 2.4 million in premium and can say I don't mind at all paying $2,000 to SIAA. Especially when you consider after paying the SIAA fee and the agency's expenses, I will probably be netting about $10k+ monthly NET into my pocket. And taking into consideration my agency is less than three years old, I think I can scratch out a living on that income. Is SIAA right for everyone, no, of course not. But then again it goes back to the foundational question, if someone is not willing to: 1) Pay an aggregator or cluster to use their carriers, 2) Share commissions with a local agent to get access to his or her carriers or, 3) Buy up an existing agency What are the other options? Well, let's look at these numbers. If you partnered up with a local agency I am assuming you do know that that agent more likely will want a piece of your business too correct? Put it this way, if another agent came to me today and asked to use my carriers I would say no. Because why would I? I am already established. Plus, why add on the additional E&O risk you would bring me, doesn't make a lot of sense. But for argument's sake, let's just say that I played along and agreed to it, I would want AT THE VERY LEAST 25% of your commissions to cover my costs for E&O and etc. Using this backdrop, let's just say you wrote a policy in the amount of $10,000 in premium through my agency and the commission the carrier paid out was 15%: $10,000 Premium 15% Commission paid by the carrier $1,500 Commission paid to my agency Now take out my cut of 25% ($375) and that would leave you with $1,125 net. And even though you and I would have a written agreement that the business is yours, guess who really owns the business, you got it, me. Now take these same parameters and use them assuming that you were signed up with SIAA. I can't give you the specifics but can say you would make more than $1,125. And guess who would truly own the business? Correct, you. So which option is better? And to closeout, let's not forget that if you work the system right, very soon you would have direct appointments with the big hitters and how much value are those direct appointments worth? Well, priceless. Hope this helps someone out there trying to decide the best path for their success! Good luck.

Good post and I am glad SIAA has been a great experience for you. For me, not so much. I think who your MGA makes a huge difference. All I know is, I pay WAY more to them, than I get back. Most of it is, the other agencies write crap business and keeps our groups loss ratios high so we don't qualify.

Honesty, I can live with the monthly fees we pay them. The thing that really gets me is the back end portion. The facts they had absolutely nothing to lose when I signed up with them, while I had everything to lose. If they had some skin in the game when I was eating ramen the first year of my business... Than i have no problem with them getting some in the back end.

I really do think the master has a lot to do with the experience.

 

[BlockO]

What would you guys suggest for an agent who is somewhat stuck in the middle?

I have 10 direct appointments, but half of them are specialty lines. The other half are non-standard auto, which is what this agency was for 21 years before I took over.

I really need some carriers for homeowners and preferred auto. Thing is, I'm spread out over six states, and thus don't want to take on too many more companies (too much of a learning curve with all the states).

Should I keep plugging for direct appts. one at a time or go for a cluster/aggregator/whatever? (don't know the differences between them).

 

[scooter33]

What would you guys suggest for an agent who is somewhat stuck in the middle? I have 10 direct appointments, but half of them are specialty lines. The other half are non-standard auto, which is what this agency was for 21 years before I took over. I really need some carriers for homeowners and preferred auto. Thing is, I'm spread out over six states, and thus don't want to take on too many more companies (too much of a learning curve with all the states). Should I keep plugging for direct appts. one at a time or go for a cluster/aggregator/whatever? (don't know the differences between them).

Have you tired contacting a preferred carrier... I would think a preferred carrier would jump at the chance to be your only preferred carrier. Once you get one add another each year.

 

[BlockO]

I have but they don't like the fact that I work at home.

There's nothing I can do about changing that because my wife is a stroke victim, and needs me at home. Not to mention that this house has been our agency location since it was started in 1989 by my father.

 

[Tylerstc]

Back when I started as a CSR in the P&C business (pre-internet) in 1994 opening a P&C agency was a breeze. All one needed to do was to get licensed, rent an office, call a few carriers to get appointed, put an ad on the Yellow Pages and walla – off you went.

Over the years the barriers of entry in the P&C industry have become harder and harder. Today it is right next to impossible for a new agency to become appointed with a national carrier. Doesn't matter how much money you have or how talented you are. Carriers are not interested in what you are going to do or how good your business plan is or the fact that you think you are going to sell 1 million dollars per month and set the P&C world on fire. The cold reality is the carriers want to know what you have already done.

Last week I was having lunch with a marketing rep and she told me on average she gets 15 calls per day from agents looking to get appointed. And she told me and I quote her "... most agents calling have the same story how they are going to sell a ton of policies but historically most fail so I just ignore 99% of the calls...".

Don't you just love posts like this that give you the problem but never the solution? In other words, say for example I came here and said that SIAA was the "kingpin or mobster" of the P&C industry and how terrible they are but then never gave you any alternatives - that would be just venting and not be of much help now would it?

My agency is almost 2.5 years old nearing 2 million in premium and can categorically say that without the SIAA carriers my BOB would probably be half of what it is today. Signing up with SIAA was the single best business decision I have made thus far. Is SIAA cheap? NO, but that's how they weed out the amateurs from the pros. And the carriers love this concept as well because it allows the carriers to study the agent before appointing the agent directly.

Do I wish I didn't have to pay up SIAA to get appointed with carriers such as Nationwide and Liberty Mutual, of course! But that's not an option. And trust me, in today's P&C environment an agency that does not have access to the top hitters will struggle for sure.

So if one is opening a P&C agency today, the options I see available are:

1) Sign up with a cluster or aggregator such as SIAA and pay their fee.
2) Sign up with a local agency that is willing to let you use their carriers and pay their fee via shared commission.
3) Buy into an agency which depending on the book and the appointments the agency has can cost quite a bit. But this is a very risky transaction in many aspects especially for someone that is new to the industry.
4) Struggle for years and years without the major carriers hoping you will make it past your third year.

So friends, unfortunately if you choose options 1, 2, or 3 you will have to pay someone something. There is no free lunch. In other words, you will have to pay a "kingpin or mobster" their "dues" or shall we call it the "fee to play in the game". Or of course going with option 4 is an option but trust me when I tell because I've been there, without the major carriers it will be a very tough going.



SIAA is not a cluster. SIAA is an aggregator. There is a difference there. And I couldn't be happier with my SIAA setup. Now there are a bunch of other aggregators and clusters out there. A friend of mine who also frequents this forum (Underwriter2agent) is setup with Global Green and he is happy so like most everything else, you have to pick what suits you best.

As far as getting out of the SIAA contracts, unless you have grown your agency to 20+ million dollars why would you want out of the contract and lose all the profit sharing and bonuses? That would be crazy!



My experience has been the opposite of what you are describing here. Now that I am approaching 2 million in premium it is making MORE sense than ever joining SIAA because now my profit sharing and bonuses from the carriers are kicking into high gear. And to be brutally honest, your post is completely incorrect. When my agency was just 1 million in size it cost me more to have SIAA than it does now. Because the bigger the BOB is the less money you will pay SIAA.

Also consider this, if you are paying $2,000 per month in fees to SIAA that would mean that your agency's gross revenue would be $20,000 monthly putting your total BOB at 2.4 million in premium. I will soon be at that 2.4 million in premium and can say I don't mind at all paying $2,000 to SIAA. Especially when you consider after paying the SIAA fee and the agency's expenses, I will probably be netting about $10k+ monthly NET into my pocket. And taking into consideration my agency is less than three years old, I think I can scratch out a living on that income.

Is SIAA right for everyone, no, of course not. But then again it goes back to the foundational question, if someone is not willing to:

1) Pay an aggregator or cluster to use their carriers,
2) Share commissions with a local agent to get access to his or her carriers or,
3) Buy up an existing agency

What are the other options?




Well, let's look at these numbers. If you partnered up with a local agency I am assuming you do know that that agent more likely will want a piece of your business too correct? Put it this way, if another agent came to me today and asked to use my carriers I would say no. Because why would I? I am already established. Plus, why add on the additional E&O risk you would bring me, doesn't make a lot of sense. But for argument's sake, let's just say that I played along and agreed to it, I would want AT THE VERY LEAST 25% of your commissions to cover my costs for E&O and etc.

Using this backdrop, let's just say you wrote a policy in the amount of $10,000 in premium through my agency and the commission the carrier paid out was 15%:

$10,000 Premium
15% Commission paid by the carrier
$1,500 Commission paid to my agency

Now take out my cut of 25% ($375) and that would leave you with $1,125 net. And even though you and I would have a written agreement that the business is yours, guess who really owns the business, you got it, me.

Now take these same parameters and use them assuming that you were signed up with SIAA. I can't give you the specifics but can say you would make more than $1,125. And guess who would truly own the business? Correct, you. So which option is better?

And to closeout, let's not forget that if you work the system right, very soon you would have direct appointments with the big hitters and how much value are those direct appointments worth? Well, priceless.

Hope this helps someone out there trying to decide the best path for their success!
Good luck.

Great post, very informative and I agree with everything you said. It seems people feel they are getting screwed over by having to pay a fee up-front with SIAA, but it's good because it can weed out some of the people that are not serious or committed. Also, the monthly fee they charge I feel is very competitive and fair compared to others.

The way I see it, if you are not starting out with a book roll, you will have a very hard time to start an agency and get good carriers. I had only 6 months of P&C insurance experience with a captive carrier when I decided to start my own agency. Within the first month, I was DIRECTLY appointed with 8 carriers. Only two of them were preferred carriers, and they generally require a book roll of $350k before they will consider appointing you if you're on your own.

I started out working from my house. My Master Agency didn't have an issue with it, but he said the preferred carriers probably would and that they would probably require me to get an office after a couple of months (if they would even let me work from home at first). Well, 13 months later, and I am still working from home, and they are fine with it because I am producing. I am not at the premium FLInsa is at, but since I am by myself and part of SIAA, they don't require much and are impressed with my production so far.

I have heard the Master Agency does make a big difference. I would call other agencies that are in the your Master Agency's group and get their opinions beforehand. It sounds like Scooter has had a bad experience... and he has stated he has paid more than he has received back. I think he is not taking into account the opportunity cost of not being with SIAA and having access to good carriers. If you don't factor that into your calculations, then you are doing it wrong. If your market is all non-standard, then you probably don't need a cluster or aggregator because they should be fairly easy to get on your own.

I have no regrets, and would recommend everyone to SIAA that was in a similar situation to me. They don't harass or bug me, but if I need help or advice they are there. Sure, they make some money off of me, but if it weren't for them I wouldn't be anywhere close to where I am now. Both sides need to benefit, otherwise one would be a parasite!

 

[scooter33]

Great post, very informative and I agree with everything you said. It seems people feel they are getting screwed over by having to pay a fee up-front with SIAA, but it's good because it can weed out some of the people that are not serious or committed. Also, the monthly fee they charge I feel is very competitive and fair compared to others. The way I see it, if you are not starting out with a book roll, you will have a very hard time to start an agency and get good carriers. I had only 6 months of P&C insurance experience with a captive carrier when I decided to start my own agency. Within the first month, I was DIRECTLY appointed with 8 carriers. Only two of them were preferred carriers, and they generally require a book roll of $350k before they will consider appointing you if you're on your own. I started out working from my house. My Master Agency didn't have an issue with it, but he said the preferred carriers probably would and that they would probably require me to get an office after a couple of months (if they would even let me work from home at first). Well, 13 months later, and I am still working from home, and they are fine with it because I am producing. I am not at the premium FLInsa is at, but since I am by myself and part of SIAA, they don't require much and are impressed with my production so far. I have heard the Master Agency does make a big difference. I would call other agencies that are in the your Master Agency's group and get their opinions beforehand. It sounds like Scooter has had a bad experience... and he has stated he has paid more than he has received back. I think he is not taking into account the opportunity cost of not being with SIAA and having access to good carriers. If you don't factor that into your calculations, then you are doing it wrong. If your market is all non-standard, then you probably don't need a cluster or aggregator because they should be fairly easy to get on your own. I have no regrets, and would recommend everyone to SIAA that was in a similar situation to me. They don't harass or bug me, but if I need help or advice they are there. Sure, they make some money off of me, but if it weren't for them I wouldn't be anywhere close to where I am now. Both sides need to benefit, otherwise one would be a parasite!

Again, I do think SIAA is great for a small, one man, work from home agency. But if you are 1.5 to 2 million in premium or over it does not make any sense. At that point you will qualify for bonuses on your own, you can get as many appointments you want... Assuming you continue to generate new business, etc.

I too thought SIAA was the best thing since slice bread my first few years. Just wait till you start cutting them checks for 2K a month. Trust me, you will start having the same thoughts I have.

 

[HealthGuy]

The funniest things about reading through the posts here that defend SIAA contracting and the nature of the P and C industry (in general) have led me to a few more conclusions:

1. Justification of one's actions is one of the strongest human conditions. Those who contract with SIAA seem to defend the 'fairness' of the contract until death do them part with the SIAA terms of the contract. However, what other industry forbids you from entering a territory to offer the most regionally competitive company unless you go through a 'kingpin'. Yes, I believe (because I didnt sign SIAAs contract) with their regional company that the terms of the contract are ridiculous. You really don't own anything, the master agency does and you are forced into their 'serfdom' by signing the contract. The SIAA master agency is the Don, you are just a spoke in their wheel.

2. I personally don't care why the industry is the way it is...you can talk about underwriting bad risks as a new agent blah blah blah...its all ridiculous! Its a ponzi scheme and the regional companies that contract with SIAA to force the little guys under their contract is just a control thing. The middle man is the SIAA regional master agency and you live and die under their oppressive contract.

This industry is ridiculous. Not allowing independent little P and C guys go direct to big companies will backfire on the P and C shops eventually. Its an outdated business model of the 1950s and wont eventually last.

 

[FLInsa]

Again, I do think SIAA is great for a small, one man, work from home agency. But if you are 1.5 to 2 million in premium or over it does not make any sense. At that point you will qualify for bonuses on your own, you can get as many appointments you want... Assuming you continue to generate new business, etc.

I too thought SIAA was the best thing since slice bread my first few years. Just wait till you start cutting them checks for 2K a month. Trust me, you will start having the same thoughts I have.

Last month I paid $1,800 and change as part of my fee and after looking at what my NET take home profit was trust me, I didn't mind at all and no regrets. Because I realize that had it not been for the fact that I have had access to the SIAA carriers I wouldn't be making what I made last month for sure.

The funniest things about reading through the posts here that defend SIAA contracting and the nature of the P and C industry (in general) have led me to a few more conclusions:

1. Justification of one's actions is one of the strongest human conditions. Those who contract with SIAA seem to defend the 'fairness' of the contract until death do them part with the SIAA terms of the contract. However, what other industry forbids you from entering a territory to offer the most regionally competitive company unless you go through a 'kingpin'. Yes, I believe (because I didnt sign SIAAs contract) with their regional company that the terms of the contract are ridiculous. You really don't own anything, the master agency does and you are forced into their 'serfdom' by signing the contract. The SIAA master agency is the Don, you are just a spoke in their wheel.

2. I personally don't care why the industry is the way it is...you can talk about underwriting bad risks as a new agent blah blah blah...its all ridiculous! Its a ponzi scheme and the regional companies that contract with SIAA to force the little guys under their contract is just a control thing. The middle man is the SIAA regional master agency and you live and die under their oppressive contract.

This industry is ridiculous. Not allowing independent little P and C guys go direct to big companies will backfire on the P and C shops eventually. Its an outdated business model of the 1950s and wont eventually last.

Not sure if you are relating to my posts but the way I run my business is emotions are not part of business decisions at all. It is purely business decisions and that's it. For as long as I have been in the business - I know for a fact because I tried - not having the major carriers is very hard on an already hyper-competitive and tough business.

And your assertion that with SIAA you don't own the BOB, that is incorrect. Once you have met certain production numbers you get a direct appointment with the carriers and it is your BOB to do whatever you wish with it including selling it if you like.

To be brutally honest the reason why I personally restrict myself from visiting forums like this and only do it every now and then is because all you hear are the negatives on everything but the solutions are never given. Because my employees will always know that if they come into my office with a problem they also better bring the solution to that problem.

So I guess my original question no one has yet answered is, besides:

1) Sign up with a cluster or aggregator such as SIAA and pay their fee.
2) Sign up with a local agency that is willing to let you use their carriers and pay their fee via shared commission.
3) Buy into an agency which depending on the book and the appointments the agency has can cost quite a bit. But this is a very risky transaction in many aspects especially for someone that is new to the industry.
4) Struggle for years and years without the major carriers hoping you will make it past your third year.

What are my other options?


And to your second point, the fact that the barriers of entry in the P&C business have become harder and harder to break whose fault do you think that is?

Just look around this forum and you will have the answer. I just counted at least 5 threads of people with zero P&C experience (and some with barely any money) looking to open their own agency. How well do you think that's going to go? Sure, there will be the exceptions but historically most will fail.

Now put yourself in the carriers's shoes and here comes Joe Smith, no experience running an agency or producing p&C business asking for an appointment, would you give an appointment to Joe Smith? Didn't think so.

Folks, I will wrap my participation in this forum and this thread for a while by saying this. If you are new to P&C and would like to open a P&C agency, my recommendation is don't go into it without any experience because you just won't know what you don't know. Sure can you do it, of course. But it will take you a long time and money to learn the ins and outs. The best alternative is go work for someone else for a couple of years, learn all you can, then make the jump on your own.

But if you choose to proceed without any experience, don't go into it without an arrangement with someone on how and which carriers you will have access to. I can't stress this enough - without the major carriers you will have a very tough time.

And one last piece of wisdom I learned the hard way is don't listen to anyone's advice if they haven't done it themselves. Imagine a 400 pound man smoking a cigarette giving you advice on how to be fit. Makes no sense right. And if I can say this in a loving way, I see a lot of "experts" on this forum giving out opinions that have no real life P&C experience on the day to day operations of running a P&C agency.

To illustrate this, would you believe me if I told you that about 80% of my BOB comes from internet leads? That's all the marketing that I do, period. Nothing else. I am writing on average 40 new policies every month all from internet leads and have so from day one since my agency opened.

And it gets better, I am buying internet leads from the same lead companies that most everyone else here on this forum is saying they are crap and trashes them. And when I read those threads, honestly I really just laugh my way to the bank and stay quiet.

I am not of course going to on a national forum tell you what my processes are on turning those leads into clients. I will say though I spent a lot of money and time figuring out on how to work them just like other process in my agency which includes SIAA.

The point is, don't listen to the so called "experts or super geniuses". Ask the questions, talk to as many people that a have a track history as you can and at the end of the day make a business decision that you think is best for your business.

As I log out for a while good luck to all!

 

[Tylerstc]

Again, I do think SIAA is great for a small, one man, work from home agency. But if you are 1.5 to 2 million in premium or over it does not make any sense. At that point you will qualify for bonuses on your own, you can get as many appointments you want... Assuming you continue to generate new business, etc.

I too thought SIAA was the best thing since slice bread my first few years. Just wait till you start cutting them checks for 2K a month. Trust me, you will start having the same thoughts I have.

I don't get it. Earlier, you stated that you don't mind the fees they charge. Now you are complaining about writing $2k checks per month? I thought about that before I signed up, and even though I am not at that point yet, I will be ok with it, because I will be making good commission due to being with them.

Serious question...please answer honestly. If you started out on your own, with no book to roll over, what do you think your premium would be now? You mentioned that most of your business is with only a few carriers. Would you be able to get appointed with those same carriers without being a part of SIAA?

This seems like a recurring theme...agencies get big enough quickly that they feel they don't need the cluster/aggregator, but without them, they never would have been able to come close to the production because they wouldn't have access to good preferred carriers.

You want SIAA to have skin in the game for you when you start out to make it fair? That's ridiculous, you must be a liberal!