Which Route to Go? Opinions Please!

[AgentProvocateur]

The downside is the number of agents that succeed starting independent vs starting salaried.

I agree if you are talking about starting as an agent or agency, but the OP is looking at producer positions.

I think the failure to succeed is driven by the need for a paycheck, which is the case for most people. The op, as a secondary income, may be able to afford the lean years & the learning curve. If that's the situation, the salary won't have any impact on success. With the captive, you are stuck with one company, rates or products may not be competitive, a base salary not likely to increase, and a salaried producer not selling enough is more likely to be terminated.

I don't disagree with the excellent points you make, Josh, but if the 25k salary is not needed by the op, I think the independent agency will be a better opportunity.

 

[nyc2phi]

It sounds like the captive position you are talking about is Liberty Mutual ? If so I can give you a little more info on the position.

 

[Josh]

I agree if you are talking about starting as an agent or agency, but the OP is looking at producer positions.

I think the failure to succeed is driven by the need for a paycheck, which is the case for most people. The op, as a secondary income, may be able to afford the lean years & the learning curve. If that's the situation, the salary won't have any impact on success. With the captive, you are stuck with one company, rates or products may not be competitive, a base salary not likely to increase, and a salaried producer not selling enough is more likely to be terminated.

I don't disagree with the excellent points you make, Josh, but if the 25k salary is not needed by the op, I think the independent agency will be a better opportunity.

You may very well be right. I think that a part of why agents don't succeed independent is that they need money faster than they are making it, but another difference is the training and support. That is especially pronounced in the life/senior market, but in P&C it's also a factor. That said, a large part of it will come down to the marketing. If an agency hires salaried reps and uses them as part of their larger marketing approach (they take walk-in apps, etc) vs having the agent solely produce from their own efforts, that can make a considerable impact on the balance of things as well.

Another thing to consider is that if all you're looking for is a commission split most independent agencies are going to be more inclined to take the risk than if you're looking for a salary. Odds are working for an agency like State Farm, Nationwide, Allstate, or any of the other major ones isn't the right fit though, you'll need a true indy for that.

 

[Bertolinoins]

My 02 cents. I am Indy with access to a dozen or more personal lines carriers but the concentration of my business is with three carriers. My new PC agents that pick a carrier to learn inside and out while targeting clients that fit within their sweet spot do a lot better than my new agents that try to learn every carrier and spend a lot of time chasing "one off" deals. Agents that try to "find a home" for business that flows to them often are less successful and have higher loss ratios and lower retention than those that find a preferred profile and go after it. I usually encourage them to pick a niche and go after it... Teen drivers, AARP members, Single family home investors, Farm/Ranch, etc. those that do seem to be more successful than those that try to be too flexible and write everything. There is nothing wrong with direct writers if you understand your carriers strengths (their real advantages, not marketing spin) and play to them.

 

[xrac]

If I wanted to learn P&C and had a chance to start in a salaried position I would think it is a no brainier. I learn on someone else's dime and once I learn the business I can go whatever direction I chose.

 

[asummer74]

It sounds like the captive position you are talking about is Liberty Mutual ? If so I can give you a little more info on the position.

Its not Liberty Mutual, but thats funny because LM was one I had looked into applying when I started looking around. Do you like LM?

 

[nyc2phi]

Yes I do like LM and just like these guys said its a great place to learn the business on someone else's dime. A lot of people make a career out of working at LM as well. The comp plan you described is very similar too.

What state are you located in?

 

[asummer74]

Yes I do like LM and just like these guys said its a great place to learn the business on someone else's dime. A lot of people make a career out of working at LM as well. The comp plan you described is very similar too.

What state are you located in?

I live in Ind. From what I saw from LM, its a tier comp correct? As in you start off at a certain salary, then as you progress in your career your salary goes down as you earn commissions correct?

 

[nyc2phi]

50k for training (3 months), 25k when you start selling first year, drops each year till you level off at 15k. Average of 10% commission P&C new business, 1-2% on renewals.