Work for Independent Broker or Myself

[pendy]

Please help me decide if I should work for myself or for and independent broker.

I worked for a wholesaler for the past 4.5 years until I recently moved down to LA, CA.

I have switched to the Retail broker side of things. Actually I went to work at Farmers( not for me)

I have been looking to hang my hat with independent brokers so I can build/start my book of biz. I am little surprised that brokers are offering only 50% commision on MY new business.
What is the norm? I thought it would be closer to 75%.

My other thought is to work for myself and join a few wholesalers and be able to retain 100% of the commission.

I realize their are pros & cons to both ....anyone want to add some insight.

Also please let me know if you know some other P&C Wholesalers such as Superior Access...

Thanks

 

[NCAgent]

Please help me decide if I should work for myself or for and independent broker.

I worked for a wholesaler for the past 4.5 years until I recently moved down to LA, CA.

I have switched to the Retail broker side of things. Actually I went to work at Farmers( not for me)

I have been looking to hang my hat with independent brokers so I can build/start my book of biz. I am little surprised that brokers are offering only 50% commision on MY new business.
What is the norm? I thought it would be closer to 75%.

My other thought is to work for myself and join a few wholesalers and be able to retain 100% of the commission.

I realize their are pros & cons to both ....anyone want to add some insight.

Also please let me know if you know some other P&C Wholesalers such as Superior Access...

Thanks

Check my guide on the section for getting started selling insurance. maybe that will answer some of your questions.

 

[FL P&C Broker]

So you want an agent to pay for overheard; rent, phones, E&O, etc. Take the risk that you don't somehow screw things up and only take 25% of the gross commissions?

 

[digfesales105]

Are you wanting to sell a little of everything like Farmers or...? That would help to answer correctly.

But...Ind is tough but great if you are determined to make it work. But you have to have some reserve. If you're on check to check or no spendable savings, don't even think about starting Ind. I can point you to some referrals and guides for IMO's and agency's if I knew exactly what you are wanting to sell?

 

[Josh]

So you want an agent to pay for overheard; rent, phones, E&O, etc. Take the risk that you don't somehow screw things up and only take 25% of the gross commissions?

Plus one.
.

 

[pendy]

Are you wanting to sell a little of everything like Farmers or...? That would help to answer correctly.

But...Ind is tough but great if you are determined to make it work. But you have to have some reserve. If you're on check to check or no spendable savings, don't even think about starting Ind. I can point you to some referrals and guides for IMO's and agency's if I knew exactly what you are wanting to sell?

Yes, I am want to sell a bit of everything.

Please point me in the right direction for IMOS & Agencys.

Thanks!

 

[Guest]

If you know how to market, consistently generate leads, and have start up money, work for yourself.

If you can't, you better hope you can get 50% using their leads, their office, and their E&O

 

[Josh]

Are you wanting to sell a little of everything like Farmers or...? That would help to answer correctly.

But...Ind is tough but great if you are determined to make it work. But you have to have some reserve. If you're on check to check or no spendable savings, don't even think about starting Ind. I can point you to some referrals and guides for IMO's and agency's if I knew exactly what you are wanting to sell?

I think if you read the OP it was pretty clear they want to sell P&C.

 

[NCAgent]

I have been looking to hang my hat with independent brokers so I can build/start my book of biz. I am little surprised that brokers are offering only 50% commision on MY new business.
What is the norm? I thought it would be closer to 75%.

This is your kicker. You basically want to own you book, use their resources, and get paid handsomely for it. So in essence, the agency is "renting" your book of business but paying resources to service it, keep you afloat, and etc. and then they have to plan as if you don't have it. You have entitlement in the voice already with "MY new business." Doctors don't take all their patients when changing practices, mortgage loan officers don't take their loans with them to continue working, and you aren't going to be taking people you built with you saying it belongs to YOU. You agree to give the business to the agency.

If you give up the book ownership then you should be able to get paid more. If you want to own the book, then your benefit is that you get carrier training and can roll the book to your direct appointment without needing a cluster first. You either have the agency or the cluster- do the agency. Make the 50% your motivation to learn and get out. 50/50 NB/Renewal is EXCELLENT if you get to own your book as well. Especially if they are going to provide the E&O, office, and etc.

It sounds like you either need to go out on your own or settle for less. You don't expect to pay state tuition for private colleges, do you? You suck it up, pay the premium, learn, and then go be successful. Do the same with the agency.

I wouldn't take someone who wants 75% of the commission for "something they generated" when in fact you couldn't do it without my agency backing you up, and then demand book ownership as well. In fact, if I were smart, I wouldn't give you book ownership for 3-5 years so that way money can be made and then you would have to buy part of the book. If I wanted to run a business where I make money on rentals then I'd open a Blockbuster.

 

[Guest]

I wouldn't take someone who wants 75% of the commission for "something they generated" when in fact you couldn't do it without my agency backing you up, and then demand book ownership as well. In fact, if I were smart, I wouldn't give you book ownership for 3-5 years so that way money can be made and then you would have to buy part of the book. If I wanted to run a business where I make money on rentals then I'd open a Blockbuster.

and we all know Blockbuster has been a huge success in recent years.