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You generally get one or the other. Having freedom and absolute control over your book of business usually means significant upfront and monthly fees. Clusters that require little upfront need to give a lower commission split and handcuff you if they want to stay in business. They have to pay the bills somehow and giving away everything without any obligations is not a winning business plan. The cluster I belong to was $5000 to join and $850 per month, but I get 100% commission and 90% of the top tier contingency they are able to negotiate with our collective premium volume. A cluster that has $25m in premium with a carrier can command a much better contingent commission deal than a single agent with a under a million.
How much experience do you have?
Do you have a current book of business?
I don't know about Conneticut, but in general, clusters are having a much harder time getting agents appointed then they did a few years ago. Carriers are getting more restrictive, not less.
As with most things, if you prove you can do it, they will all open their doors for you. If you can't prove it, its a bit harder. Not impossible, just harder.
I like the idea of clusters, I believe they are the right way for most agents to go. But a cluster has to fit your business plan and it needs to be a marriage, not a one-night stand. Yes, you need a pre-nup and know what it takes to get out, but if you are thinking that going in, it won't work, for either you or the cluster.
The fees a cluster charges should be more than paid for by the higher commissions, profit sharing, access to carriers, etc. If you plug the fees into your business plan and it doesn't work, then you need to find a different cluster with a different structure.
You're overall question is similar to asking who is the best spouse? Well, the answer depends on you.
Dan
Do you have a current book of business?
I don't know about Conneticut, but in general, clusters are having a much harder time getting agents appointed then they did a few years ago. Carriers are getting more restrictive, not less.
As with most things, if you prove you can do it, they will all open their doors for you. If you can't prove it, its a bit harder. Not impossible, just harder.
I like the idea of clusters, I believe they are the right way for most agents to go. But a cluster has to fit your business plan and it needs to be a marriage, not a one-night stand. Yes, you need a pre-nup and know what it takes to get out, but if you are thinking that going in, it won't work, for either you or the cluster.
The fees a cluster charges should be more than paid for by the higher commissions, profit sharing, access to carriers, etc. If you plug the fees into your business plan and it doesn't work, then you need to find a different cluster with a different structure.
You're overall question is similar to asking who is the best spouse? Well, the answer depends on you.
Dan
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