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Marc Anthony at 949-463-6751

It is very difficult for a very new agency, most especially if you have not been licensed for very long, to get independent agency appointment. One way around this is to join an insurance agency cluster organization (also networks, franchises, or alliances) as they arrange for insurance carrier appointments, profit sharing, and a number of other benefits you would not have on your own. If you use the “wholesale distribution system” in many cases you will not get the best policy terms and you must share commissions. You can find a list of cluster organizations along with information on how to start an independent agency on my website.

You can join an Agency Network like SIAA or subgroups like BGI.

jkearns wrote:Personaly, I would stay away from aggregators, clusters, franchises, networks, and wholesalers. Specially, if they require a monthly fee or an annual fee more then $250.00. It's just not worth it. It's better to go and get diret appointements or work with MGA's or program administrators.

I'm licensed in 20 states, and planning to eventually be licensed in all 50 and DC. In my resident states I'm appointed as a modified-captive-direct agent with Farmers.

A few problems with the comments above. First of all, the person above is a "Farmers Agent" so this is not coming from a pure Independent Agency Principal. Some things above just does not make any sense, for example the individual talks about getting appointed direct in all "50 State." The problem with this is, unless he has a huge operation (which I doubt from the his description), it's unlikely (if not impossible) that this person has appointments with first rate carriers like Safeco, Travelers, Chubb, Hartford and the other national large carriers. These carriers don't appoint agencies on the fly, it's not reality. Also in order to meet profit sharing minimums, you need to be part of a pooled volume, so this is where the aggregators come in. InsuranceNoodle and Wholesalers provide a great service, but one is not appointed directly when they go through middlemen like this, also more than likely they get a lower cut. Going through wholesalers is perfect for Farmers Agents who are not full time Independents, those who need a single market for one risk and who don't do enough to get profit sharing. An aggregator is an investment, however the return on investment in the long run is significantly better for those who plan on doing a minimum of 100k (on the very low side) a year or more in revenues. The aggregator provides markets (often direct appointments) and more often than not, contingencies and profit sharing. I have seen some who have tried to start an agency by doing this way, by trying to go direct and through wholesalers. However in due time, they are seeking out the right aggregator (agency cluster, network, alliance, etc) as they learn it's not possible to start a viable preferred agency without these organizations.

A great place to look and create a profile to easily get appointments is mynewmarkets.com And theinsuranceconnector.com

Joining an aggregator such as ASNOA is a good option. You do give up some of your commissions but in turn, you're receiving many more carriers, increased commissions, and profit-sharing.

If you're just starting your transition or comparing aggregators, word of advice, review the contracts. "You own the book" has multiple translations in this industry. It's better to understand them now than wait 5 years, have a $3-5M book, and decide you want to leave. Many known aggregators and clusters want to keep your client in portfolio forever, so, while you can leave, you may be penalized.