Who are the Independent Brokerages?

mxh259

New Member
4
Hello All,

I am currently a producer with a captive agency looking to open my own independent agency. I am familiar with Goosehead and Brightway and heard of associations but I am looking for a comprehensive list of all of the options for the state of Pa (Southeastern Pa to be more specific). So far I am most attracted to Goosehead with the proposition of 0 service work but I’ve seen a lot of feedback questioning the fees (40,000 franchise fee in my state and 50% renewals). Any input would be greatly appreciated!
 
There are almost some local ones as well. But you should also look at the local SIAA master agency as well as PGI.

That is an absolutely massive franchise fee, what do you get for it?
 
Thank you VolAgent. I just happened upon a site for SIAA before i read your comment and i will check out PGI as well. I also found this site regarding clusters AgencyEquity.com | Advanced search results

Any input on the clusters? Some of those listed there are saying no fees and that makes me suspicious like if it’s too good to be true... it probably is. I’m trying to find a balance of support to help me grow and reasonable fees. Again... thank you for the feedback!
 
Also... I am looking to start my agency with me being the only producer until i can bring in enough commissions to pay for a producer and a CSR. Is that totally unheard of?
 
I personally went with SIAA, but not all contracts are the same. Master Agencies have a lot of latitude, and some are better than others.

@shawnmwalker is with PGI and I'm sure he'll be along shortly. I personally did not care for the contract, however I also respect the NDA I signed with him, so until they send me a signed release I won't comment on it. He and I have spoken at length about it.

I also know of agents in another group that love PGI, and I'm glad it works for them. And I know agents that hate SIAA with a passion.

@BADTROUT also has a group, although I'm not sure they are in PA. I'm not sure I would go for his deal or not, but I found him completely refreshing in his honesty. Other than the recruiter I spoke with at SIAA, I haven't found someone as willing to share the negatives as the positives. Part of it may simply be because he asked me to review it due to my outspoken nature on cluster contracts.

The one thing I cannot stress enough is to read the contract and completely understand it. I spoke with other groups as well that aren't represented on this forum.

One thing I will say, in the life arena, assigned commissions is a huge no-no and there is where I got my start. Most of the clusters will have assigned commissions. They get paid and then they pay you. Perhaps it is just my background, but I don't like that.
 
Whatever Aggregator, Cluster, Network, Franchise, Alliance, market access platform you join, here are some of the key items to consider.

1) Initiation and/or setup fees
2) Monthly fees
3) Commission (what is the New/Renewal split or what is the commission % for each market)
4) Term Commitment - (are you locked in for 15 years?)
5) Book ownership (and exactly what book ownership means - this is where it can get very dicey. You may be required to buy the book you own back from the agency)
6) Ease of leaving - (Make sure you understand exactly how you can leave)
7) Software (access to a comparative rater and management system, lead generation)
8) Support (Is it access to markets and nothing else? Are there training opportunities? Is there help in marketing commercial deals? Is there a forum for agents to communicate and help each other?)

Determine your goals and find what is best for you. Be caution but don't be deterred from the "too good to be true" model. It may actually be exactly what is seems.
 
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