Episode Summary
This podcast episode features an insightful discussion between insurance industry veterans David Ireland and Gillan about strategies for building a successful insurance agency from the ground up.
David emphasizes that the ideal candidate for starting an agency is someone who has already built up a steady book of business and renewal income stream. This provides stability as you get the agency off the ground. He recommends having at least one or two agents already committed to joining the agency before formally setting up shop.
A key early decision is how to structure the agency - as a sole proprietorship or limited liability company (LLC). The LLC structure allows for income sharing with partners while limiting personal liability. The tradeoff is there can only be one principal owner. As a sole proprietor, you maintain full control but have unlimited personal liability.
Once the structure is determined, David advises working with your brokerage's contracting team to get your initial team of downline agents fully contracted before establishing the agency entity. He provides an overview of the different agency tiers offered by the brokerage, explaining how the override commission structures work at each level and setting goals accordingly.
According to David, strategic recruiting is imperative for scaling up your agency. He suggests targeting newer agents who will appreciate mentorship and selling the value propositions of your agency's culture, training programs, and carrier appointments. The brokerage's contact center can assist with outbound recruiting efforts on your behalf. However, David stresses that face-to-face meetings tend to be most effective for persuading recruits.
Gillan notes that a major advantage of building an agency within the brokerage is leveraging its suite of growth resources - including assistance with contracting, compliance, training, marketing, technology, and more. David agrees that the brokerage's national infrastructure and support team are designed to help partner agencies expand their reach and better serve agents and customers across wider geographies.
In summary, David provides a wealth of practical tips and insights in this episode to help experienced insurance producers take their business to the next level by building a thriving, scalable insurance agency. His strategic advice covers structuring, contracting, recruiting, leveraging brokerage support, and more.
Timestamps
(0:00:00) - David Ireland talks to us about how to build an agency of our own
(0:00:51) - Sometimes I get calls from agents who just started or thinking about getting into agency
(0:06:51) - With the overrides, it's much less than the street-level commission
(0:07:54) - Insurance agencies get an override on Medicare Advantage business
(0:12:37) - Free broker link can help you grow your insurance business
(0:15:33) - How do you start to build an agency? How do you recruit
(0:17:34) - When you're a producing agent, you're generally writing business as an individual
(0:25:31) - How do we start to bring people into the business and build this agency
(0:28:31) - You need to have your unique value proposition when working with agents
(0:30:27) - How does the brokerage help people build an agency and recruit
(0:32:55) - We are always doing our own recruiting outbound and inbound as well
(0:35:31) - David: How do you get started with the insurance brokerage
