Please Tell Me if this is a Good Deal

[BocaLouis]

Hi everybody I'm a newbie here but not new to insurance, a little background on me: I have being 215 licensed over 10 years and 2-20 almost 5 years, currently work as a producer. I want to start my own agency but do not have the necessary means at this time, so an agent approached me and made this proposal:
I will get a 1k monthly salary and a 75% commission on new business, and 20% on renewals, he will provide me with an office, leads, servicing will be done by he's 4-40 people, phone, computer, internet, etc. he currently have around 10 HO carriers and 10 auto carriers, it sounds good to me (and pretty much best choice out there) but the fact that I am only getting 20% on renewals discourages me a little, the potential that I see is that when get to be able to afford all the expenses on my own (everything mentioned above) the split will be 45 on renewals, what this guy is offering me is kind of a franchising deal as I will be by myself on the new location. I considered Bright way but they wanted a 60k initial and the split is 85 on new and 55 on renewals.
So please tell me what you think, your input will be appreciated

 

[Josh]

He's providing you with leads and servicing plus 75% FYC or first premium commission? If it's first year then I think it's a great deal.

 

[FL P&C Broker]

Sounds like good deal. You are getting a salary and a high % on new business. If he is giving you leads I can tell you that he is taking a loss on you the first year.

 

[Josh]

Wow, I missed the salary. That is a great deal.

 

[BocaLouis]

He's providing you with leads and servicing plus 75% FYC or first premium commission? If it's first year then I think it's a great deal.

FYC which is good, and 20% renewals isn't that very low, renewals is why I want to become an agent.

 

[xrac]

That is a good deal.

 

[FL P&C Broker]

He has to make his money back somewhere. Stop being greedy. You could easily make 60k your first year with that schedule and only go up from there.

 

[Josh]

FYC which is good, and 20% renewals isn't that very low, renewals is why I want to become an agent.

With leads and a base salary? Absolutely not. If you want to be making renewals you can start yourself and keep 100% of both, but your odds of failure jump quite a bit that way.

 

[moonlightandmargaritas]

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So please tell me what you think, your input will be appreciated

What's the alternative? If you haven't got the trump to open your own shop, go for it.

 

[BocaLouis]

So the guy with good proposal was full of crap,and is a goner, I will go my own way, I still work as a producer for a captive agency, now I notice that when I got my 2-20 few months ago my license got unaffiliated with my current employer, now i have no appointment with them so the question is, can I start my own agency while still working as a producer for someone else? The plan is to get separate office and work evenings an weekends until I get going, so can that be done? I went to my boss suggested opening and partnering on an I.A. but he does not want he's best producer to grow independence even thou I have a sweet fl ho carrier unavailable to him, willing to give me the appointment (due to a good connection). This question arises from my understanding that if your license is appointed as a producer with an agency you cannot do anything externally, I might be confused could you shed some light please?