Which Route Should I Go?

[benwrigh]

I am looking at really getting into FEX and/or life here is my situation:

I work at a family agency, owned by my grandfather. We focus on P&C. I just got my L&H license. He told me that I can keep 100% of the commission on what I sell. I would be focused on sales through leads, not from our current client base.

My question is should I write business through the agency or, since this venture would mostly be on my own time, do this as my own business? I understand I would have costs in e&o.

Should I start through the agency and then see how it works out?

What are some of your thoughts?

 

[bboman23]

E and o is so cheap. That shouldn't even be a factor. Kinda like factoring in the oil change in your car.

 

[benwrigh]

E and o is so cheap. That shouldn't even be a factor. Kinda like factoring in the oil change in your car.

Yes, I realize that, I was just kind of thinking out loud about possible expenses.

A couple of additional thoughts were that A. If I am doing well with it, I would rather not have that being considered as compensation when it comes to salary negotiations.
B. As stated in the last post, I shouldn't really consider e&o as a factor as it would be <$500. Tax would taken out of commissions from agency.

I think I'm starting to answer my own question....

Im guess im just looking for what the downside would be for going on my own.

 

[HomeService]

E&O is high on the P&C side, but it sounds like you want to sell life.

What's wrong with working a little bit in the agency and on their clientelle, selling them life...and a little bit from leads out in the field? Why not do both? Sounds like you are trying to "break away" maybe....

 

[bboman23]

Not sure there is a down side. If you stick where you are you get a 100? If you go on your own you will be around 110. Ten points is not a huge deal.

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I am looking at really getting into FEX and/or life here is my situation:

I work at a family agency, owned by my grandfather. We focus on P&C. I just got my L&H license. He told me that I can keep 100% of the commission on what I sell. I would be focused on sales through leads, not from our current client base.

My question is should I write business through the agency or, since this venture would mostly be on my own time, do this as my own business? I understand I would have costs in e&o.

Should I start through the agency and then see how it works out?

What are some of your thoughts?

you might be good where you are
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I am looking at really getting into FEX and/or life here is my situation:

I work at a family agency, owned by my grandfather. We focus on P&C. I just got my L&H license. He told me that I can keep 100% of the commission on what I sell. I would be focused on sales through leads, not from our current client base.

My question is should I write business through the agency or, since this venture would mostly be on my own time, do this as my own business? I understand I would have costs in e&o.

Should I start through the agency and then see how it works out?

What are some of your thoughts?

 

[benwrigh]

Not sure there is a down side. If you stick where you are you get a 100? If you go on your own you will be around 110. Ten points is not a huge deal.

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Call me sometime 6019387663 I should be able to give you better responses knowing what your looking for. I do not recruit at all. Simply help

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Call me sometime 6019387663 I should be able to give you better responses knowing what your looking for. I do not recruit at all. Simply help

Thanks. Also, by 100% I meant that I would get all of the commissions.

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E&O is high on the P&C side, but it sounds like you want to sell life.

What's wrong with working a little bit in the agency and on their clientelle, selling them life...and a little bit from leads out in the field? Why not do both? Sounds like you are trying to "break away" maybe....

I like to do things on my own and have always wanted to have my own business.. I have always had a entrepreneurial spirit. I am definitely not considering "breaking away." I just like the idea of doing/having something of my own.

 

[RichMcK]

But you'll be tied to your Grandfather. Thus the business you write will not be your business. As fine of a man as he is, it's not, in the long term, good for you, unless the ins. company contract in your name.

 

[bigjake]

Is the current P&C agency captive? Of not, then you should be able to write for whomever you wish. If it is and that company offers life, then you and he are bound by the agency agreement.

Even if you do not call on that company's clients, you may still violate the terms of your grandfather's agreement with the carrier. It is in HIS best interest that you do not sell life out of his agency. However, you as an independent agent could rent office space from him an pay rent as a function of earnings, much the way a McDonald's franchise works.

You may want to consider incorporating yourself as a separate agency down the road - that will help you tax wise and legally as well. Been through this before myself!

 

[benwrigh]

Is the current P&C agency captive? Of not, then you should be able to write for whomever you wish. If it is and that company offers life, then you and he are bound by the agency agreement.

Even if you do not call on that company's clients, you may still violate the terms of your grandfather's agreement with the carrier. It is in HIS best interest that you do not sell life out of his agency. However, you as an independent agent could rent office space from him an pay rent as a function of earnings, much the way a McDonald's franchise works.

You may want to consider incorporating yourself as a separate agency down the road - that will help you tax wise and legally as well. Been through this before myself!

Thanks for your insight. We are an independent agency.

And just to add some more background, I thoroughly enjoy working there and working with P&C. I have been doing it for five years, it has been my only job, and I have have a,ways been exposed to insurance. For those that did not see my introduction on the forum, my grandfather started the agency over 40 years ago. My grandmother works there. My brother, mother, and aunt are all licensed and work at the agency. My dad does not work there, but he is licensed as well. I am treated very well as far as flexibility and compensation. To sum it up, I AM happy with my current situation...

I just feel like I have an opportunity to try something new. And I am now thinking that the better decision would be to take it without the being under the shadow of the agency. I am still looking forward to anyone else's input/advice.

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But you'll be tied to your Grandfather. Thus the business you write will not be your business. As fine of a man as he is, it's not, in the long term, good for you, unless the ins. company contract in your name.

This is what I am becoming more aware. Thanks.

 

[Pete Cormie]

Marketing and selling life to an existing P&C book is like shooting fish in a barrel. As long as the life contracts are in your name, you "own" the life commissions. It seems pretty straight forward. Good luck and don't forget to thank Gramps often.