Why Did You Choose to Be a Captive Agent?

[NovaGal]

Why did you choose to be a Captive Agent, vs. being a totally Independent Agent?

What do you like about it... and what do you hate (other than the commissions being lower)?

 

[Newby]

Why did you choose to be a Captive Agent, vs. being a totally Independent Agent?

What do you like about it... and what do you hate (other than the commissions being lower)?

I don't think agents CHOOSE to be captive. They don't understand when they get into it that there is any other option.

You don't wake up from your job at Kinkos and think "Hey! I bet I could be great at selling insurance. I'll just start up my own biz!"

They are recruited by captives. Once they learn of other options they either like where they are at or they take the jump.

 

[NovaGal]

@ Newby, my research has led me to believe that when you are "captive" you can't just jump somewhere else. Your commission is assigned to that agency, and you also probably had to sign a non compete. So if you jump, you jump alone and without any residuals on the contracts you sold.

I thought a person would go the captive route for the agency admin support, the leads, training in the field etc.

 

[rousemark]

The last five years I spent as captive I did so because I needed health insurance and my wife and I were uninsurable. The only way we could get health insurance was through a group plan. As soon as I became eligible for Medicare I returned to being independent I would never go captive with a company that didn't not offer benefits.

 

[Newby]

@ Newby, my research has led me to believe that when you are "captive" you can't just jump somewhere else. Your commission is assigned to that agency, and you also probably had to sign a non compete. So if you jump, you jump alone and without any residuals on the contracts you sold.

I thought a person would go the captive route for the agency admin support, the leads, training in the field etc.

Usually agents start captive because they don't know there is any other choice. Even if they did know they could be independent they would fail because they wouldn't know what to expect.

A good captive is a great place to learn. But yes when you jump over to independent, you are starting over again with nothing. But it's usually worth it.

 

[Josh]

@ Newby, my research has led me to believe that when you are "captive" you can't just jump somewhere else. Your commission is assigned to that agency, and you also probably had to sign a non compete. So if you jump, you jump alone and without any residuals on the contracts you sold.

Some of the above is true, but you can be captive without assigning commissions and you can also be captive without signing a non-compete. Even if you do have to sign one, usually you are more or less just agreeing to not go back and resell your old clients. If it's anymore than that, it's usually not enforceable in court and it's generally more of a scare tactic than anything else.

I started off as captive with AIL because I didn't know any better. I'm glad I didn't because it worked out well for me.

 

[xrac]

A person can go captive for licensing assistance, for training, for benefits such as health insurance and retirement, or because the recruiter lies to them promising the sun and moon.

 

[Jake07712]

When I first got into the insurance business I went captive because I knew nothing about selling insurance, and I was looking for training and a workable system.
Although I haven't been captive for well over 1o years, I still feel that it is a viable way to go if you're with the right company and in the right office.

 

[DecisionMan]

Why?

Because I didn't know any better at the time.

Because I believed the promise that they'd train me.

Because I thought the agency would keep current apps on the shelves, paper in the copy machine, and actually pay me on time.

Because I thought "its an experienced operation, they've got to know what they're doing!"

Because I thought they told the truth that they had the best carriers.

Because I thought "there's no way I'll ever have the contacts at the carriers like these guys do!"

Because I didn't know I could get direct contracts.

Because I didn't know the cut they were taking was actually what I was paying them to deliver on what they said they'd do.

Because I didn't know this forum existed.

Because I didn't think I could speak with underwriters and wholesalers directly, and that was the agency's job.

Because I thought they'd make sure what I was doing was compliant and not mislead me.

Because then I thought this business revolved around leads.

. . . because back then I didn't know better at the time.

Sometimes one has to fail first to learn how to succeed.

 

[tins]

Why?

Because I didn't know any better at the time.

Because I believed the promise that they'd train me.

Because I thought the agency would keep current apps on the shelves, paper in the copy machine, and actually pay me on time.

Because I thought "its an experienced operation, they've got to know what they're doing!"

Because I thought they told the truth that they had the best carriers.

Because I thought "there's no way I'll ever have the contacts at the carriers like these guys do!"

Because I didn't know I could get direct contracts.

Because I didn't know the cut they were taking was actually what I was paying them to deliver on what they said they'd do.

Because I didn't know this forum existed.

Because I didn't think I could speak with underwriters and wholesalers directly, and that was the agency's job.

Because I thought they'd make sure what I was doing was compliant and not mislead me.

Because then I thought this business revolved around leads.

. . . because back then I didn't know better at the time.

Sometimes one has to fail first to learn how to succeed.

Yeah, pretty much word-for-word what he said.