- 11,292
DHK
Ouch! Your opinion of his comment here was a bit negatively exaggerated . Although , I do agree with you on your points of working as a captive agent, for the many benefits and training it provides you. I also agree with his "theory" of having many options to help fit your clients exact needs and budget, by being independent. I have been captive with companies before that had horrible products and ethics, and I couldn't sleep at night knowing I did my client wrong, so I quit. But going independent is for seasoned agents and brokers. For newbies, I would never attempt to go independent. If a new life agent or even if someone has had their license for a year or so, goes independent, it's over! Independent means alone! No support, no training, no leads, no motivational pep talks. You are basically left to figure it out all by your overwhelmed self (if your lucky, maybe your FMO will you help here and) you will be alone and lost in a vast financial and insurance jungle . And at the end of the year, the captive agent pulled in a nice income for himself and family, but the new independent agent didn't earn diddly squat! I'm new to this website and forum, and was slightly surprised by the harsh comments of some. But, that's ok by me. Just don't blast me in a comment. Be nice, or else!
----------
----------
I'm new to this website and forum and my comments are ending up in all the wrong places. I guess I better go read the "instructions".
You're on target with your thoughts. I've quit a few companies in my time as well due to office ethics, sales practices &/or product design. Once you don't like your product line... the writing is on the door. If you're not 'in love' with your product line, you've got problems.
After 5 months with Combined Insurance, I only liked 2 out of 7 products. And these were supplemental health policies, so it's not like I was making a lot of money with them either. Later I went to Mutual of Omaha, and they're pretty good... but their 'flagship' life policy was a UL with an antiquated illustration system. I couldn't illustrate it to its maximum potential... and later I had issues with the office manager's ego.
Watch the first minute or so of this video. They talk about captive vs. Independent.
https://www.youtube.com/watch?v=8naJmCd-swo&list=UUDiiDoKppNGo7sTEjY9r_kg
It's funny about how so many agents think it's all about "offering the best choices" for your client. That may be true for Medicare Supplement, LTC, DI... basically anything health related.
But for life insurance, and the advanced strategies available when maximum-funding a policy, I find that the best business model is to focus on 1-2 companies with complimentary products... and THEN if the client is declined, or rated, find another company that may be suitable for that particular client.
You can do that as a captive agent OR as an independent agent. For the independent agent, I would probably focus on a "whole life" company and an "IUL" company.
The advantages are:
1) You KNOW the product line.
2) You KNOW the underwriters.
3) You can pool all your production with those 1-2 companies and maximize compensation.
4) You can better protect yourself by focusing on these 1-2 companies and knowing their products inside-and-out.
5) It's easier to manage your business with only 1-2 companies to search for information.
6) If the product line is broad enough, then once the medical exam is done, it's generally good for 6 months to offer the other products available without repeating the exam.
But knowing products... isn't enough to be successful. John Savage said "Knowledge of the product never was and never will be worth more than 5% of the sale. Knowledge of people - 95%. And if you ain't got that straight, you've got nothing straight." John Savage placed 99%+ of all his business with a little company called "Columbus Mutual" - now "Columbus Life". If you never heard of Columbus Mutual or Columbus Life... neither did his clients... and he did MILLIONS of personal production with them until he died in 1993.
So all these new independent agents are out there saying "I'm independent so I can find the best product for you"... is really missing the boat... at least with advanced life insurance strategies.
Now, if all you want to do is sell the lowest priced 'X' insurance... and that's your competitive edge and business model... then you should be independent and offer as many choices as you can... because you're selling on PRICE.
If you adopt a business model and process that is NOT 'price' sensitive, then you can truly pool your production with just 1-2 companies and keep your business as simple as possible, in my opinion.