The Problem with Captive Agencies in General

[eric rose]

This title caught my eye....I have a thought or two about "the problem with captive agencies".

Most of the larger life company's out there in the last decade have labeled their agents "financial representatives". FR's with firms like Mass, Northwestern, NYL, Metlife....technically are not "captive", however it's not much different!

To contribute a little to the title of this post, I feel the biggest problem with the career agencies in general is that its a smoke and mirrors game. The large life companies have spent countless millions in figuring out the psychology of mdrt type reps or those who people who will become successful producers. They realize that to attract the successful types they have to give "their opportunity" and indepedent, business-owner flare.

So in these firms like the ones I listed above, you get normally get all the expenses of a business-owner but with none of the independence of one. You pay for staff, rent, and technology, but have to answer to a GA about every decision you want to make for your practice.

I'm also blown away by the costs, the cost for a CUBE in an office I am familiar with is close to $300 per WEEK. That includes technology and support staff, but not direct support. No one answers the phone or does paperwork, they key in applications. There are benefits to the captive/semicaptive business but it comes at a big cost.