Jumping Ship for a Higher %?

JerseyAgent732

New Member
1
Hi all, I would love to gather the perspective of fellow agents as to a possible agency change for myself.

I am currently with a well established indy agency in Central/Northern NJ, focused primarily on commercial (mainly b/c of commission split, not lack of markets). I started my book here about 2 years ago, which I own some equity in. I began with a small draw, then "teaser" commission splits over the 1st 3 years gradually lowering to final splits at year 3 and thereafter.
I dont have to service my book (even though obviously I still receive the majority of the service incoming calls), and I CANNOT rate / quote my own policies. (sometimes good and sometimes bad, meaning I Have to wait on my marketing dept to run quotes, but obv frees up more of my time).

I have a potential offer from another, smaller, much newer agency (opened a hand-full of years ago), who's owner also happens to be a friend, offering a 30-55% increase in commission splits, as compared to current (with the same split across the board on all lines/personal & commercial). I would have to market my own, service my own (can hire help as/once needed), and would be starting with limited markets most likely, especially as compared to my current agency. The physical office is about an hour away, so I would be working remotely 100% here most likely.

My background: Worked in captive for about 6 years before joining the indy agency I am with now for a few years.

Pro's to moving:
-30-55% more INCOME / commission splits
-Being able to service / rate for my own prospects/clients
-True "ownership" in my book VIA being a majority equity holder (current agency I am the minority equity holder by far)

Con's:
No support staff/ having to service myself/ quote & rate myself
Limited Markets

Curious what your take is on it.
Stay with current, giving up the majority of renewal commission for servicing and marketing department? Or move, for much much larger equity in what I write basically being all on my own.. ala pretty much in business for myself, but giving up a little equity for the markets they have established already, a physical office location/ infrastructure, E&O coverage, etc...

Or should I say screw it and go completely out on my own?? :twitchy:
 
Hi all, I would love to gather the perspective of fellow agents as to a possible agency change for myself.

I am currently with a well established indy agency in Central/Northern NJ, focused primarily on commercial (mainly b/c of commission split, not lack of markets). I started my book here about 2 years ago, which I own some equity in. I began with a small draw, then "teaser" commission splits over the 1st 3 years gradually lowering to final splits at year 3 and thereafter.
I dont have to service my book (even though obviously I still receive the majority of the service incoming calls), and I CANNOT rate / quote my own policies. (sometimes good and sometimes bad, meaning I Have to wait on my marketing dept to run quotes, but obv frees up more of my time).

I have a potential offer from another, smaller, much newer agency (opened a hand-full of years ago), who's owner also happens to be a friend, offering a 30-55% increase in commission splits, as compared to current (with the same split across the board on all lines/personal & commercial). I would have to market my own, service my own (can hire help as/once needed), and would be starting with limited markets most likely, especially as compared to my current agency. The physical office is about an hour away, so I would be working remotely 100% here most likely.

My background: Worked in captive for about 6 years before joining the indy agency I am with now for a few years.

Pro's to moving:
-30-55% more INCOME / commission splits
-Being able to service / rate for my own prospects/clients
-True "ownership" in my book VIA being a majority equity holder (current agency I am the minority equity holder by far)

Con's:
No support staff/ having to service myself/ quote & rate myself
Limited Markets

Curious what your take is on it.
Stay with current, giving up the majority of renewal commission for servicing and marketing department? Or move, for much much larger equity in what I write basically being all on my own.. ala pretty much in business for myself, but giving up a little equity for the markets they have established already, a physical office location/ infrastructure, E&O coverage, etc...

Or should I say screw it and go completely out on my own?? :twitchy:

If you're making six figures, don't fix what ain't broke!:no:

If you're not making at least 100k a year, I would suggest doing something else!
 
If you're making six figures, don't fix what ain't broke!:no:

If you're not making at least 100k a year, I would suggest doing something else!

I 'second' this advice. But of course this is predicated on you being mostly motivated by money (which is not a bad thing at all. I've been poor and I've been rich and rich is better!)

I don't know your sector but in other sectors making $100+K a year is difficult and I believe it is really dependent on the demographics in your market area. In NYC where I am it is a lot easier on the upper east side than the lower east side! (Of course here you get to work ALL sides!)

Money aside, where do you think you are going to be happier?
 
I 'second' this advice. But of course this is predicated on you being mostly motivated by money (which is not a bad thing at all. I've been poor and I've been rich and rich is better!)

I don't know your sector but in other sectors making $100+K a year is difficult and I believe it is really dependent on the demographics in your market area. In NYC where I am it is a lot easier on the upper east side than the lower east side! (Of course here you get to work ALL sides!)

Money aside, where do you think you are going to be happier?

I'm thinking 100k a year in NYC is pretty much minimum wage...lol

I do Final Expense here in South Florida!
 
Stay with current, giving up the majority of renewal commission for servicing and marketing department?

what about negotiations to improve your equity situation in the current agency?
 
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I would probably start with your current agency. Don't tell them you want to leave. Just ask to see if you can improve your compensation. Perhaps gain some equity in your book?
 
First off I would highly recommend you do what Brian Tracy suggests, and define what will ultimately give you peace of mind, then build your entire life around THAT.

The sooner you can do this in life the better. Most people couldn't tell you their goals if you gave them all day, let alone have them written down and can recite them off at a moment's notice (i.e. they're constantly focusing on them).

Once you clearly determine precisely what you want out of your life, then you can start asking yourself if the new opportunity steers you closer or further away to it.
 
Heck...Im in search of a commercial guy...I'll give you 90% and 50% renewal.
Hows that for a pay raise? If you are interested, PM me your phone #. You can work remotely but Im in Middlesex county.

But to answer your dilema, I would inquire about getting a better payout. Are you getting any renewals? If you hit certain monthly premium, do you get a bonus?
What's holding you from moving?
 
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Higher commissions are attractive but it's hard to put a price on full back office support, marketing, etc. I would think it really depends on what is more important to you: Do you enjoy sales the most? Do you want to spend your time JUST selling? Or do you enjoy the marketing angle, and building a business, etc.? Also, which is more important: high income or guaranteed pay? I feel like every agent has struggled with this, and their are pros and cons to both, but you have to decide what is most important to you. Nobody can tell you which is "Better" because neither is- they're just different.

Personally, if I prefer high income potential to security. But then again, I also like playing poker, so that says something about my personality. :-)
 
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