How do I know when to leave independent agency and start my own ?Go to Top
Heres the deal. ive just started as an agent for an independant agency in town who has contracts with many carriers for p&c and life and health. currently it is a good deal because they take care of all overhead and i have no experience. all i do is prospect and close. my split is straight 50% on commission and renewals.
Right now it works because i am barely building a book of business and couldnt afford the overhead of owning my own agency.
But at what point is it time to leave? how big of a book would i have to have to self sustain? i guess what im wondering is
1 - how good is this deal im getting? the better i get and the more money i make, obviously the less i need this person ... theyre getting 50% off my back
2 - for those here who own their own agency, how much of your gross commission/renewal goes to overhead? im trying to find that magic number. there has to be a number after which its all profit (for example ... it costs 100k to run your office, so after 100k, its all profit).
The 50/50 split works right now because she does everyting (employs staff, eo insurance, services policies), but im just wondering how much that is really worth. if i make 50k a year in renewals, i COULD be making 100k if i was on my own (or could i? would my overhead eat it up?)
Basically im wondering whats more valueable .... giving away 50% not to have a headache, or being independant and keeping all of it (including the headache of running everything).
re: How do I know when to leave independent agency and start my own ?Go to Top
Originally Posted by figdog
heres the deal. ive just started as an agent for an independant agency in town who has contracts with many carriers for p&c and life and health. currently it is a good deal because they take care of all overhead and i have no experience. all i do is prospect and close. my split is straight 50% on commission and renewals.
Right now it works because i am barely building a book of business and couldnt afford the overhead of owning my own agency.
But at what point is it time to leave? how big of a book would i have to have to self sustain? i guess what im wondering is
1 - how good is this deal im getting? the better i get and the more money i make, obviously the less i need this person ... theyre getting 50% off my back
2 - for those here who own their own agency, how much of your gross commission/renewal goes to overhead? im trying to find that magic number. there has to be a number after which its all profit (for example ... it costs 100k to run your office, so after 100k, its all profit).
The 50/50 split works right now because she does everyting (employs staff, eo insurance, services policies), but im just wondering how much that is really worth. if i make 50k a year in renewals, i COULD be making 100k if i was on my own (or could i? would my overhead eat it up?)
Basically im wondering whats more valueable .... giving away 50% not to have a headache, or being independant and keeping all of it (including the headache of running everything).
It should be hard to figure out what it would cost you to set up an independent shop. Simply set down and budget out all of costs and then inflate by 25%. Then you should be able to figure out how much you have to sell to make that feasible. If you are already thinking this way there is no doubt in time that you will pull the trigger. If and when you make the move your biggest issue will be appointments with P&C companies and a release from the agency you are with now.
What happens to the business you have now when you walk away? Are your renewals vested or do you lose them? Do you have any type of non-compete? Will you have to go 6 months without writing any of the companies you are writing now because you cannot get released?
One thing you may consider doing is trying to negotiate a more equitable split if your production is good.
re: How do I know when to leave independent agency and start my own ?Go to Top
DO NOT go independent until you go back to school and learn all about punctuation, business writing, letter writing and email writing. You need to become a professional if you intend to be on your own. You are probably a fast learner so it should be easy for you to correct bad habits.
re: How do I know when to leave independent agency and start my own ?Go to Top
If you don't think enough of yourself to email everyone as if you were a professional you will never be one. If you go on a sales call with wearing a T shirt and sandals you will not close many, if any sales. Your appearance on the net, discussion boards, and to your prospects has to create an impression that you are experienced and know your stuff. If you write using no caps, and are not aware of how you appear on the net, better to get a job then work on commission against pros. Look at he emails the pros on this discussion board use. Not sloppy, not lower case, not high school. Remember you are an unknown and can appear as a highly successful agent if you only try.
Any time you use the net get in the habit, good habits. Doesn't cost anything, just puts one to the test of how they think of themselves. Good luck. And read the little Red Book of Selling, or You Can Sell anything By Telephone or any other book on how to sell. Many years ago, before you were born, the salesmen who lasted read How to Sell The Sizzle, Not The Steak. It still applys in today's market.
Re: How do I know when to leave independent agency and start my own ?Go to Top
Jerome,
I don't think it really matters if people use proper puncuation or not. What matters is when people say one thing and do another....sounds like one of our future presidents.
Don't call someone out and then mispell your own post. It makes you look pretty foolish. The funny thing is you probably used spell check when most proffessionals know that you NEVER trust spell check. Read your post before you talk crap.
"Look at he emails the pros on this discussion board use. Not sloppy, not lower case, not high school. Remember you are an unknown and can appear as a highly successful agent if you only try."
Re: How do I know when to leave independent agency and start my own ?Go to Top
First Post under this username but that is besides the point. Why shatter someones dreams by insulting them on how they write. It is a message board for crying out loud.
Re: How do I know when to leave independent agency and start my own ?Go to Top
To be Honest with you there are more GA's out there than can give you more commisions and as far you being ready you have to do a self evaluation and see if you have the following skills such as closing skills, extreme product knowledge and also good companies behind you. Almost forgot make sure you know how to market yourself alot of good agents dont have business due to the fact that they dont put their name out there.
Re: How do I know when to leave independent agency and start my oGo to Top
Originally Posted by ijerome
If you don't think enough of yourself to email everyone as if you were a professional you will never be one. If you go on a sales call with wearing a T shirt and sandals you will not close many, if any sales. Your appearance on the net, discussion boards, and to your prospects has to create an impression that you are experienced and know your stuff. If you write using no caps, and are not aware of how you appear on the net, better to get a job then work on commission against pros. Look at he emails the pros on this discussion board use. Not sloppy, not lower case, not high school. Remember you are an unknown and can appear as a highly successful agent if you only try.
Any time you use the net get in the habit, good habits. Doesn't cost anything, just puts one to the test of how they think of themselves. Good luck. And read the little Red Book of Selling, or You Can Sell anything By Telephone or any other book on how to sell. Many years ago, before you were born, the salesmen who lasted read How to Sell The Sizzle, Not The Steak. It still applys in today's market.
Sir, with all due respect, your grammar isn't perfect either.
"Not sloppy, not lower case, not high school."
If you truly want to give critique then you shouldn't throw stones in glass houses. Explain to me how that is a complete sentence. Please use diagrams and try to not bother people who type fast on forums.
Re: How do I know when to leave independent agency and start my oGo to Top
Let me get this straight. Go back to school, take an english or spelling class to sell more insurance? PLEASE! Learn how to become a great marketer, get in front of a lot of qualified customers and sell yourself and your products. Then you will build a great business. Good Luck.
Re: How do I know when to leave independent agency and start my oGo to Top
When your fairly confident in your sales ability. When you feel like you got a handle on how to market yourself and prospect for new business. Then it may be time for you to step up go for it. You can still hook up with quality MGA/IMO Marketing Organizations that provide full street as well as General Agent commission levels. Most importantly you want to make sure the contract you sign are ones in which you own your own block of business. Quality organizations will still provide staff service and support, product and sales training, lead support programs and even sales incentive trips. Good luck and don't let fear from the unknown keep you from moving forward! I took the same steps after 9 years of being with a Captive Company, and now 19 years later, my only regret was I wish I had made the move sooner!
Re: How do I know when to leave independent agency and start my oGo to Top
Originally Posted by ijerome
DO NOT go independent until you go back to school and learn all about punctuation, business writing, letter writing and email writing. You need to become a professional if you intend to be on your own. You are probably a fast learner so it should be easy for you to correct bad habits.
THAT REALLY SUCKS. Most of us that text, chat and twitter type 70+ wpm, but this is very, very informal..Just where did you get your MBA?????
heres the deal. ive just started as an agent for an independant agency in town who has contracts with many carriers for p&c and life and health. currently it is a good deal because they take care of all overhead and i have no experience. all i do is prospect and close. my split is straight 50% on commission and renewals.
Right now it works because i am barely building a book of business and couldnt afford the overhead of owning my own agency.
But at what point is it time to leave? how big of a book would i have to have to self sustain? i guess what im wondering is
1 - how good is this deal im getting? the better i get and the more money i make, obviously the less i need this person ... theyre getting 50% off my back
2 - for those here who own their own agency, how much of your gross commission/renewal goes to overhead? im trying to find that magic number. there has to be a number after which its all profit (for example ... it costs 100k to run your office, so after 100k, its all profit).
The 50/50 split works right now because she does everyting (employs staff, eo insurance, services policies), but im just wondering how much that is really worth. if i make 50k a year in renewals, i COULD be making 100k if i was on my own (or could i? would my overhead eat it up?)
Basically im wondering whats more valueable .... giving away 50% not to have a headache, or being independant and keeping all of it (including the headache of running everything).
FIRST OFF, if you are a proven closer, 50% sucks bad! Many GA's will give you at least an 80-90% contract for life, 22+ for health, your own book, an immediate release etc.. Don't develop a business plan, ur GA has one u can simply copy and edit for your goals. Don't think about your own office, direct contracts, etc....until you have at least $10k in working capitol. Glad to talk to you any time.
Last edited by DavidD1 : 08-23-2009 at 10:49 PM.
Reason: Posts merged
How do I know when to leave independent agency and start my own ?
Re: How do I know when to leave independent agency and start my own ?
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