I Need Advice, Captive to Independent

[akhong]

I've been with a captive company for the last 5+ years. Learning and training has been great. So many advantages working for captive but there are things I do not like: Limited choices on products, Micromanaged, and Splitting commissions with the house. I've lived with all of this. I've recently met a person who is independent and has a growing firm. He is willing to give me a sweet deal if I came to work with him. Here is his deal: Over 100% commission %, Chance to form a team, Many choices on products, No housing expense, Bonuses, and Flexibility.

To compare: Captive give you better Renewal rate (Average 12%).
Independent Renewal rate (Average 2-3%)
Captive Commission rate (80% to 55%)
Independent Commission rate (110%)
Captive benefits: Subsidized at 50%. Paying $400/mnth
Independent benefits: None
Captive Expenses: E&O, Rent,
Independent Expenses: E & O and Rent free

Can you tell me which is better. This independent financial adviser is NOT a marketing company. Which one would you select?

 

[Guest]

do you actually believe this? Why would this guy put you on? Whats in it for him?

Hell, I own my own agency and I dont think I get all that!

 

[DecisionMan]

Maybe a little more background:

What product lines?

When you say he has a "growing firm," in what way? Does he have some captive agents or are they all independent? Do they get the same deal as you?

Where is the profit motive for him?

Initial impression, at least for me, is that you can get all that one your own anyways so why hook up with another guy? What advantage is there in that? You've already got all the training and likely a BoB.

Something's missing here.

 

[akhong]

Guys thanks for the replies.

What he is getting from me is a bonus for taking me on and a little more juice on top of commissions. Also an experienced agent who is looking to grow a team, in which case he will be getting a bonus for everyone I hire.

What I will be getting is a office space, laptop, printer, the usage of a new business person all for free. Ability to assemble a team of professionals with overrides attached to it.

I am in the Life, Health, Disability, and Long Term Care Insurance. I am also Securities 6 and 63, so Variable Annuities and Mutual Funds are included.

What do you think?

 

[rapidrobert]

Leads? How are they generated for this new gig and how much?

 

[djs]

My take....
The numbers of what you will get don't add up to a long term workable solution. Yes, he might be getting a bonus, but that only goes so far. He might be getting an override, but that won't pay the bills on what you seem to be getting.

To make this even close to workable, you would have to do some pretty serious production. Without it, paying office space and related expenses for you seems a bit over the top. He might have other reasons though.

Bottom line: Somebody has rose colored glasses on. Not sure if it is you or him or both.

Dan

 

[b61mack]

Depends on what you are making at the captive? Forget about commission split, how do you get your leads now. What captive company are you talking about.

 

[Bertolinoins]

My take....
The numbers of what you will get don't add up to a long term workable solution. Yes, he might be getting a bonus, but that only goes so far. He might be getting an override, but that won't pay the bills on what you seem to be getting.

To make this even close to workable, you would have to do some pretty serious production. Without it, paying office space and related expenses for you seems a bit over the top. He
might have other reasons though.

Bottom line: Somebody has rose colored glasses
on. Not sure if it is you or him or both.

Dan

Well said. The math doesn't add up so eventually something will have to give. The situation as described does not benefit both parties enough to work for a long period of time.

 

[msurrano]

do you think he might be bringing him on as a true sub, and not making overrides, but being paid all of the commisssions?