Independent Agency Commissions to Agents

[Tbryant44]

I myself is about to start off on my own venture as a agent/broker I been a captive agent for AARP/United Healthcare. I have no intention making just one company money. I want to sell different products that will fit people needs. Med supp, Med advantage, Major Medical , dental etc. Is the agency a " Captive" so you can only sell for them ? I need to keep my hands and all the baskets lol

 

[thomasm]

I'm probably using the term "semi-captive" incorrectly. My agency used to be a career agency for one carrier, now they've spun off and we are now able to offer a limited number of other carriers. I have two carrier contracts for life, one carrier for disability, and pretty much all the major med supp carriers in my area. So I'm no longer captive to one carrier, but I guess I'm captive to my agency, because my manager would get all my renewals if I quit! Thanks for the info, now I know why my manager spends all his time recruiting! Yes, he will provide office space and leads, but I haven't asked for it yet. I work out of my home and generate all my leads knocking doors.

 

[Newby]

I'm probably using the term "semi-captive" incorrectly. My agency used to be a career agency for one carrier, now they've spun off and we are now able to offer a limited number of other carriers. I have two carrier contracts for life, one carrier for disability, and pretty much all the major med supp carriers in my area. So I'm no longer captive to one carrier, but I guess I'm captive to my agency, because my manager would get all my renewals if I quit! Thanks for the info, now I know why my manager spends all his time recruiting! Yes, he will provide office space and leads, but I haven't asked for it yet. I work out of my home and generate all my leads knocking doors.

You are CHOOSING to give up 40% of your commissions and have no vesting of your renewals and you are generating your own leads? Why,why,why?

When you read through what I (and others) offer independent agents, does it just seem too good to be true? Is there some reason you choose to do that to yourself? I don't understand the psychology.

 

[thomasm]

Well, the biggest reason is I got introduced to the insurance industry during a pretty low time in my life financially. My credit was and still is trashed! When I got recruited most of my appointment applications were denied. I had to repeal several times. Thankfully my agency manager vouched for me and I finally got contracted with some major carriers! It will probably be 3-5 years before my credit is fully cleaned up and restored. By then I'll probably have a significant renewal base that will be hard to walk away from. My contract level increases as I hit certain production requirements and and I can get overrides for training and developing other agents. My renewals are 50% vested after 5 years and 100% vested after ten years. I generate my leads by knocking doors because I'm good at it! I've been canvassing D2D for direct sales companies since 2003. Personally I think all a lead is, is someone with a problem that's willing to hear how you can help them. What better way to find those people than to go out there and talk to people at their door. I realize that you can be much more efficient and focused by purchasing leads. I'm just more interested in implementing my own lead generating system. (Personally I have a hunch getting into the leads business may be a more profitable use of my time, than the daily grind of building a book of business!)