By: Michael Miller, Smart Choice® State Director
Building an insurance agency is challenging, whether you’re a new insurance agent just starting out on your own or a seasoned agent adding a new line to your agency’s offerings. Developing relationships with carriers takes time and effort. Joining a cluster group is an effective way to fast-track those relationships and gain access to markets that you could not on your own.
But becoming a member of a cluster group can present its own set of issues. Some charge fees for starting and maintaining your membership. Others require agents to share a large portion of their commission, bonuses, and other supplemental compensation.
Often, cluster groups require agents to make a minimum monthly commission with carriers. But savvy agents know that not all months are created equal in the insurance business. Sales can fluctuate month-to-month and quarter-to-quarter. Requiring agents to meet monthly commission requirements can be unfair and unrealistic.
Smart Choice® Agents understands that not all agents have the same sales goals. Some are go-getters trying to maximize monthly sales, while others choose to grow more slowly. That’s why we do not require our agents to meet or exceed monthly commission goals. Our agents have the opportunity to make 100-percent commissions and keep all the supplemental compensation, bonuses, and trips they earn.
Whether you’re hoping to build a million-dollar agency in less than a year or slowly build your commercial insurance offerings in 2016, choose your cluster group wisely.