Clusters/GMAs to Stay Away From?

[kongsmasher]

Hey guys. Over the forum from thread to thread ive heard mention of "cluster" organizations that already have appointments that you can sign up with for a 1 time or monthly fee. Which ones look to be a good deal for a new agent, and which ones definitely arent? Here are the ones ive heard of:

insurance noodle
global green
iriquois
SIAA
superior access
smart choice

 

[LGilmore]

Why should you pay a fee to join anybody?

They get paid overrides on your business. To pay somebody so you can sell product that they get paid again on, doesn't really make sense, does it?

 

[fearsback]

kongsmasher what state are you in. That is important, because each cluster or franchise is beneficial for their location. To Gilmore the reason people pay for it because in places like in Florida where I am you can not get appointed by yourself with these companies unless you have a huge book and even then it is still dificult. I would rather pay for the appointments and have a bunch then not and have 1 or 2 carriers and write no business. Some commission on a policy is better then none when you can't write it. Good Luck.

 

[kongsmasher]

Currently OK but looking at AR just across the border.

 

[LGilmore]

Not every area does it that way fears. I'm assuming you're talking P&C as well as a person would be nuts to pay to join a life and health vendor.

There are P&C networks that just take a percent of business submitted (you pay for your E&O, other licensing) but don't charge you a joining fee along with taking a cut. Maybe it's a northern thing. Maybe they fell taking a percentage is enough instead of a percentage AND a fee.

 

[kongsmasher]

Can anyone name any more?

 

[PhilL]

Suggest you go to agencyequity.com

Check out the links for starting a new agency or clusters & alliances. Enter your State or States of interest and you will get most of the premium aggregator listings available, along with some info about them and their websites.

 

[TwiLight]

Can anyone name any more?

You forgot the biggest one:

AgentSecure: Your Online Wholesale Solution. Helping to secure your agency's future. (owned by insurezone.com)

Been using for 10 years. no issues at all.

 

[PhilL]

Consider them all. But do your homework. Like anything else, one size does not fit all. Take your time.
Review each contract carefully. Ask a lot of questions, especially about ownership of the business, particularly if and when the relationship is terminated by either party.

 

[EugeneM]

In California I like United Valley Insurance Services... for P&C
Joining a cluster is not an easy choice. It would think long and hard about it. Yes you do give up commissions and dont forget you have to uphold a certain code of ethics. (which is good I think)
You also have premium volume requirements and even corporate clothing...
You do however get to use a recognized brand. Infrastructure support, Back Office Srpport, Carriers, help with underwriting, marketing and driving business as well as overall leadership.

Would you give up 20k to make 100k?