Do You Have Less Than $500,000 Premium or 3 Years in Business and Need Help Getting Off the Ground?
Many start-up agencies hear that they need to “qualify” for a contract with a carrier by having business ready to place. Of course, the agency also needs the contract to be able to place business. So, the start-up stalemate begins.
Learning the business while trying to obtain contracts is an arduous task. Working side by side as an affiliate provides the training, and contracts that you need quicker to establish your agency, and fast-track growth. More carrier appointments can be obtained as an affiliate with the same amount of business that may only allow for one or two appointments. We have already “satisfied” the contracts requirements, so your growth depends on your goals, and not the goals or limitations set forth by your carriers need.
The other huge advantage for the start-up is that profit share requirements are greatly reduced. While most carriers start the lowest tier of sharing at $500,000, we allow our affiliates to participate with sub-code appointments, which can be obtained with some carriers for as little as $25,000 in written premium. That is the first part of the discussion. The second part is that because of our collective premium size, we are not basing profit share off the first tier that a carrier has on their profit share plans. Our plans are legitimately between 2-3 times higher because of our volume, and previous profitability, meaning that the premium written carries much more weight than struggling on your own with a few appointments.