Who Here Has Been Both Producer and Principal? Which Do You Prefer?

[indienoise]

I'm considering my more long-term goals, and I want to make sure I'm doing the right thing for myself.

Simply put, I know there are pros and cons to both sides. Volume requirements is one thing I know I'll have to be concerned about that I'm not so much right now, and I'll have to keep a much closer eye on loss ratios. Are there a lot of extra tasks an agency principal has to worry about that a producer doesn't? FWIW, I'm running a satellite office on my own so I rely very little on the main office or any CSR's for anything, so I'm talking more along the lines of what the owner would have to be concerned with that everyone else doesn't bother with. The only costs I don't pay is E&O and appointment fees - I currently don't have a lease or any utilities to pay aside from my phone due to the nature of my location). Is there THAT much more of a profit margin running a small to medium sized agency (that maybe, might hire a single producer down the road) as opposed to the agency getting a cut? (I'm getting 65% new and renewals, and I know any business I'd have to write through an aggregator or wholesaler wouldn't be much different)

The TL/DR here is, I know some agency principals end up selling and going back to being a producer and there are always producers who want their own agency. For anyone who has done both, is it worth it? Which did you prefer?

 

[cottonland]

Most principals started out working IN the business, then when they transitioned to a principal, a large portion of their time has to be spent working ON the business. There is a distinct difference in the two.

 

[indienoise]

Really curious to hear any feedback. I know either role has its own set of aggravations. Was it worth it? Really pondering whether or not i need to go through the trouble or just be happy where I'm at. I almost feel obligated in a way, most of the people i know and respect are business owners, i have a pretty sweet independent contractor, make my own hours, do business as i please gig with good compensation, but i know i could have more to show for it. Plus I'm not spending anyone's marketing dollars except my own and am kind of past the needing a mentor stage, at least as far as product knowledge and basics of the insurance business. If I knew then what I know now, I wouldve started on my own, but that's part of the game, right?