Goosehead Insurance?

[CuriousCat]

I am also looking into Goosehead in the DFW metroplex and would be interested in any insight any of you might have.
I agree that the 50% on renewals seems very high, but this is our first foray into insurance, so I may be wrong. I'm also curious about the franchise fee ($40,000) and whether any of you can chime in as to whether the fee is actually worth the "additional support" they provide. Thanks!

 

[agentinsouth]

I am also looking into Goosehead in the DFW metroplex and would be interested in any insight any of you might have. I agree that the 50% on renewals seems very high, but this is our first foray into insurance, so I may be wrong. I'm also curious about the franchise fee ($40,000) and whether any of you can chime in as to whether the fee is actually worth the "additional support" they provide. Thanks!

Be a tiger, not a house cat and go out on your own. You will regret joining a cluster, especially one that takes of this much freaking money from you!

 

[indienoise]

At 1.5MM in premium, you'll be leaving over 100 grand on the table letting goosehead service your book. You could hire 2 csr's (and that's overkill) with cash to spare with that other 50%
Its all a matter of scale. Don't be shortsighted just because you're kinda happy with what you've already got.
I'd eager some (or many) groups are well worth the split. For 50% though, they better be creating value for you WAY beyond having a call center. And I still assert that those clients will end up calling your number, not 800-goosehead.

 

[captiveagent]

Here is my understanding of Goosehead.
Fee is $60,000.00 in Texas and starts at $25,000.00 in other states.
Renewals are a 50/50 split.

Question: Do they handle new business quoting? Is it really "NO SERVICE WORK"?

 

[Dreamiekid]

Hey, all.

I'm a farmers agent and will be going independent soon

I need some information on Goosehead. I've already looked into the business model so I'm good on that. Things I need to know:

How much is the Franchise fee to get in?
How's the commission structure on NB and renewals?
Will they appoint you out of state? I have licenses in 10 different states.

Thanks!

Don't do it. Go IA.. Go on your own and find your own appointments. If you have the money to lose on a fee then you can start your own agency without a doubt.

 

[BADTROUT]

50% Renewals
25k to 60k startup?

How is there even a conversation, let alone a debate about this?

If anyone is willing to agree to those terms I want you to take a deep breath close your eyes and contemplate the following. I am thoroughly convinced that although you can be successful in just about any business model if you work hard enough at, you are foolish to drop this kind of startup money in lieu of marketing and human capital period.

Those out there that buy into the notion of "I own my.." If you have a non compete, and are bogged down by 50% renewals... because they do service for you arent you just an employee that has taken on a portion of the overhead?

I'm not bashing anyone who has, or will make the decision to go this route, but just so its said, there are options out there far better, less restrictive, less expensive, and dont play on your wanting to be a part of something "elite".

Wouldnt you rather your paycheck be elite?

 

[VolAgent]

50% Renewals
25k to 60k startup?

How is there even a conversation, let alone a debate about this?

If anyone is willing to agree to those terms I want you to take a deep breath close your eyes and contemplate the following. I am thoroughly convinced that although you can be successful in just about any business model if you work hard enough at, you are foolish to drop this kind of startup money in lieu of marketing and human capital period.

Those out there that buy into the notion of "I own my.." If you have a non compete, and are bogged down by 50% renewals... because they do service for you arent you just an employee that has taken on a portion of the overhead?

I'm not bashing anyone who has, or will make the decision to go this route, but just so its said, there are options out there far better, less restrictive, less expensive, and dont play on your wanting to be a part of something "elite".

Wouldnt you rather your paycheck be elite?

About the only difference between this model and State Farm is having multiple carriers. Other than that, in some ways it is worse.

 

[TexasVet]

You’re talking a lot about commission. What about other very important details?

- length of contract?
- 2 year non competes?
- vested interest in your book of business?

 

[BADTROUT]

John,

Having a local staff that I can manage is far more important to me along with my independence than having the "franchise" handle that for me. What happens if I decide to break up with GH or BW? Are my customers trained to follow me, or the staff they have become accustomed to contacting?

Will I get a share in contingency? No no, I mean a REAL share of it, or a GH or BW bonus one a year?

There are many more factors to this, and there is no right single answer for anyone. There are those that are a great argument for any of the structures.

The perfect one for me is:

One where I get 80 to 90% of everything new or renewal (to include overrides).

One where I can walk away at any time without worrying about a non-compete of any kind

One where I can expect a real share of profitability and contingency bonus

One where I do get a dedicated relationship with and have direct underwriting and binding authority
One where I don't have to sell a kidney on craigslist to get started with.

It just depends on who you are and what you are looking for. It's akin to spending a ton of money to open a McDonald's franchise or Starting your own. I prefer choosing my own adventure. Either way, you can be successful if you work hard enough.

 

[BADTROUT]

One more point I would like to make...

You can go out and work for an agency, and get 50% renewals (as a matter of fact I pay as an agency owner 75/75 diminishing down 5% per year until it gets to 50/50), have no overhead, and all of the service work is done for you. These agreements are just like having a job, only with more overhead, and less benefits.