I am looking to open my own independent agency (P&C) and have been exploring network options. My background is captive, so I would like to partner with a group that can offer support starting up in the Indy world and get me access to competitive carriers & products. Goosehead has been popping up all over the place, can anyone tell me whether they are worth looking in to? decent splits? do you own your book? I'm concerned that their contract / model will be totally geared toward corporate profit, not the individual agency. and how is client retention with their service center handling everything? any input is appreciated! thank you!
Goosehead Insurance?
- Thread starter Amelia22
- Start date
- 5,290
I know nothing about them, but so far everything I have heard on the forum is good.
- 2,199
I think they are worth "looking at" - but I do not know if they will be the right decision for you and for others. My understanding, and this could be wrong or dated, is that they handle the back end of the customer side. You sell it and they service it, but take a chunk of the comp. [ please correct me if I am wrong ]
Additionally with all of these MGAs/ Clusters/ Etc - I would go over the contract with a fine toothed comb. Have a friend, Have a Lawyer, review it over and over.
Bill Billock
Expert
- 20
I’m currently with PGI. I left my corporate agent gig almost 2 years ago and went out on my own. I spent a metric ton of time betting out all the different aggregators including goosehead. For me they were a hard no. For others they may be wonderful. After all the dust has settled, I must say that I could not be happier with my choice….full steam ahead.
Gustavo Fring
New Member
- 14
My father and I were looking into them because he's about to retire and I need a path forward. There were a ton of fee's with an option to purchase the franchise for $25,000 in cash that could take years to decades to pay off for nearly $65,000. We have $25,000, but still decided to pass. You use their web based system of finding new home leads that you could figure out yourself. Don't get me wrong, they probably have an application that offers great analytics at finding Mortgage and Real Estate agents to hook you up with, but it's not worth it to me. You don't service any of your customers and you focus on selling. Goosehead service center takes care of all that. I personally hate the thought of selling someone something and I couldn't guarantee the quality of the service. If you're a smart agent, you'd have a licensed agent who you train to service, sell, and cross sell. I didn't mention that after the renewal, you only get 50% of your commission. Yes, they Thanos snap your hard earned commission because you would only be half the agent you are without them. I could probably go on with more reasons why I passed on them. Even if you fail at their business system, you are on the hook for the money you agreed to pay them.
The disclosure agreement was my tipping point, because they tell you that you cannot discuss anything about their business system to anyone outside of your business including your spouse in any way imaginable. If you leave Goosehead, you cannot use any of their ideas in any way even if you you were a tech person that had ideas before you accepted their disclosure agreement and accepted the Goosehead agency. It may sound like common sense to agree not to use their product, but imagine becoming successful without Goosehead, only for them to come back to you and sue you.
The disclosure agreement was my tipping point, because they tell you that you cannot discuss anything about their business system to anyone outside of your business including your spouse in any way imaginable. If you leave Goosehead, you cannot use any of their ideas in any way even if you you were a tech person that had ideas before you accepted their disclosure agreement and accepted the Goosehead agency. It may sound like common sense to agree not to use their product, but imagine becoming successful without Goosehead, only for them to come back to you and sue you.
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- 1,481
I wrote this on a post many years ago:
Because we come from the carrier side, we know our Agency competition and Carriers very well. I call many of them on both sides close, honest, good, friends.
We have One client: Our Agents.
We have One Stake holder: Our Carriers.
We don't tell you what you want to hear, we consult with you and help you hear what needs to be heard. And then let you make the business decisions.
Important Note: Paying someone 50-55% of your renewals for service work. WHAT? I know it exists but WHAT? WHY? when you can pay a national carrier to do it for.....1%, 1.5%, 2%. Hell there are other companies that you can out source it for a fraction of the price.
The idea of paying someone 50% of your RESIDUAL INCOME, (The reason we got into this business) hurts my soul.
Every contract is unique, slow down and enjoy the process of reading them all. Highlight them. Ask questions. I think ours is 13 pages long. Easy read, nothing is slipped into the latter half of an 89 page contract, after you are tired of the legal language.
Call me if you have questions. I am busy but if I have time I love spending time with agents asking great questions. If I don't have time (and I often don't),I'll put you in touch with David Colvin our National Director of Business Development- He is great. (Been a captive, Been an indy, Been on the carrier side with all the big boys- I want to say 30 plus years) He knows his stuff. He has met 1000's of agencies.
Last note: I too have met and managed 1000's of Independent Agencies. Many of which belong to groups, clusters and Aggregators. Many are insanely happy with their relationship with their groups. Others, loath their Cluster and want out. It is so important that you find the right group so your next choice, is your last.
My Mom always told me: Choose your Love, and Love your Choice. (But that was marriage advice)
Because we come from the carrier side, we know our Agency competition and Carriers very well. I call many of them on both sides close, honest, good, friends.
We have One client: Our Agents.
We have One Stake holder: Our Carriers.
We don't tell you what you want to hear, we consult with you and help you hear what needs to be heard. And then let you make the business decisions.
Important Note: Paying someone 50-55% of your renewals for service work. WHAT? I know it exists but WHAT? WHY? when you can pay a national carrier to do it for.....1%, 1.5%, 2%. Hell there are other companies that you can out source it for a fraction of the price.
The idea of paying someone 50% of your RESIDUAL INCOME, (The reason we got into this business) hurts my soul.
Every contract is unique, slow down and enjoy the process of reading them all. Highlight them. Ask questions. I think ours is 13 pages long. Easy read, nothing is slipped into the latter half of an 89 page contract, after you are tired of the legal language.
Call me if you have questions. I am busy but if I have time I love spending time with agents asking great questions. If I don't have time (and I often don't),I'll put you in touch with David Colvin our National Director of Business Development- He is great. (Been a captive, Been an indy, Been on the carrier side with all the big boys- I want to say 30 plus years) He knows his stuff. He has met 1000's of agencies.
Last note: I too have met and managed 1000's of Independent Agencies. Many of which belong to groups, clusters and Aggregators. Many are insanely happy with their relationship with their groups. Others, loath their Cluster and want out. It is so important that you find the right group so your next choice, is your last.
My Mom always told me: Choose your Love, and Love your Choice. (But that was marriage advice)
- 2,199
Crazy Stuff
Gustavo Fring
New Member
- 14
Did you every check out Fire Fly? They seemed like a competitive aggregator. [EXTERNAL LINK] - Insurance Companies for Independent Agents - LP - JoinFirefly
Matthew Labb
Expert
Goosehead, sure check them out.
Look at five different networks. Compare the contracts.
Show an attorney.
Each contract is different.
I am the business development manager for a P&C network based out of your home state of Colorado.
We'd love to be included when you go to evaluate contracts. Ours is only 4 pages long.... easy to understand.
Here's a list of questions to ask any network you talk to...
Look at five different networks. Compare the contracts.
Show an attorney.
Each contract is different.
I am the business development manager for a P&C network based out of your home state of Colorado.
We'd love to be included when you go to evaluate contracts. Ours is only 4 pages long.... easy to understand.
Here's a list of questions to ask any network you talk to...
- Do you have a good carrier mix across the lines of business I want to use in my agency?
- Are those carriers competitive in my region specifically?
- Do you have any production requirements?
- Do you provide an agency management system?
- Do you provide a comparative rater(s)?
- Do you have a non-compete or non-solicitation if I decide your network isn't for me? If so... why?
- Do I need an office or may I work from home?
- What if I am new to Insurance, is that ok in your network?
- Do you have any exit fees?
- Can I sell my agency at some point?
- If I sell my agency, do you take a cut?
- Will I quote, bind, and service my policyholders directly with the carrier on their sites, or submit through you.
- How long is my contract for, and do I get ownership right away, or over time?
- What are the startup fees and are you willing to work with me if I need to make payments?
- What is the commission rate/split?
- What is the criteria for participation in the contingency bonuses (if applicable)?
- When there are overrides and incentive bonuses do we get any of those while in your network?
- Do you have a cap on the commission split or do you take your split forever?
- Do you offer training during the startup phase of my agency and mentorship throughout the relationship?
- Are you open to me contacting some of your member agencies before I sign the contract?
- Are you open to me contacting some of your carrier reps before I sign the contract?
- May I have an attorney, or third-party consultant review my contract with me?
- How much industry experience does your network leadership have?
- Has anyone in your leadership had experience in running an independent agency?
- Does anyone in your leadership have any carrier experience/background?
- May I contract with other carriers outside of your network?
- How long have you been in business and how many agencies do you have in your network?
- Define ownership.
- How does your agency network make money?
