Hello agents and potential insurance agents! If you are currently engaged in insurance sales or are considering an insurance sales business, the following insights may help ensure that you are on the right path to a long-term and profitable insurance business. It should also help you determine what type of contract, independent or captive, and you are now better suited to your needs and goals at this point in your career.
When I started working on insurance sales 28 years ago, I was registered by a company that only offered exclusive sales contracts. I don't know the existence of independent contracts, let alone the pros and cons of them. I have been selling, recruiting and training in accordance with my exclusive contract for the first 9 years of my career. For the past 18 years, I have sold, trained and trained agents based on independent sales contracts.
One of the major problems I encountered when I signed an exclusive contract with a company was that there were not enough product choices. For some time, some of the products we offer are not competitive at all in the market.
This severely limits our ability to provide solutions to many potential customers. Over the years I have found that most proprietary companies usually only have two to three competing products at a time. They usually focus on one or two niche markets. This limits your cross-selling opportunities when you are not allowed to purchase other contracts. As an independent agent, you can sign contracts with many different companies. This can be a problem because many insurance agents have lost contracts with contracts with many companies at once. However, sometimes you may want to change the market or add another company with a very competitive product. You need to be an independent agent to do this.
Another important issue I have to work under a dedicated contract is that I don't have my own business. Another phrase for your business ownership is "having ownership of your business unit". The companies I work for require you to be their 15 years before you have 100% business rights!
When I left after 9 years, I only had 40% ownership. This means that when I left and became an independent agent, I did not receive a 60% renewal in my active policy. Once again, I don't know or know that there are other opportunities to sell insurance, and I have 100% of all sales rights from the first day! I have learned a lot of difficulties. That's why it took me a long time to move because I know I will lose a lot of renewal revenue. There are many agents working for independent agents who sell a number of companies that do not provide ownership. Therefore, when the agent leaves the agent, he still gets all the renewals of the business. This may not be entirely dependent on other support and services that the agent may provide for the agent.
In general, another difference you will notice is that the commission schedule for an independent agent is usually higher than the time schedule for a dedicated insurance agent. For example, when I sell as a sole agent, the commission for my health insurance product is 20%, and the commission for life insurance products is 55%-65%. When I switched to an independent agency contract, I began to remind my health insurance to sell 25% commission and 90%-100% commission on my life insurance sales.
Traditionally, one of the advantages of proprietary companies is that they provide more training and support for new agents entering the business. But now there are many great MGA, NMO, IMO and FMO agencies that offer all the training and support provided by traditional self-defense companies. In addition, you can still get the highest commission contract, instant ownership, multiple company portfolios, leadership support systems, and more.
Then, we hope that this information will help you again. I don't have to learn something as difficult as I used to in my career. I didn't have the first hand to understand the pros and cons of the independence and captive contract, I spent a lot of time and money. Insurance sales career can be very beneficial, if you are from a knowledge point of view, your success journey can be faster!
Orignal From: Independent insurance agent and exclusive insurance agent
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