Maximizing the “Independent” Part of the Independent Agency Equation
No matter how much experience you have, the path to successful insurance agency ownership includes many obstacles. Brittany Olson discovered this when she opened the Brittany Olson Insurance Agency in Cloquet, Minnesota. Even though she had worked as an independent agent for more than a decade in her family’s agency, she still had trouble securing the needed carrier appointments for her own agency. However, thanks to network support, Brittany’s challenges are in the rearview mirror; she is now reaping the rewards of independence!
A Family Tradition
“I come from a long line of insurance agents,” Brittany says, explaining that both her mom and her grandfather were independent agency owners.
In fact, one of her earliest memories is of her grandfather’s agency. One day, while she was chatting with her grandfather, he looked at her and said, “You like to talk a lot.” It wasn’t meant as an insult. Her grandfather saw something special in her. “I think you’ve got the gift,” she recalls him saying. “I think you should be in insurance.”
Fast forward 13 years, and her grandfather was driving Brittany – then 18 years old – to her last class for her property and casualty insurance license. “He couldn’t be more proud,” Brittany says.
Making It on Her Own
Brittany got her start in insurance working at a family-owned insurance agency, but when she married, she decided to relocate and start her own business. At that point, she had 13 years of experience and great relationships with many carriers. She assumed that starting her own agency would be easy.
However, it wasn’t as simple as she envisioned. Carriers that she had partnered with for years suddenly viewed her as too risky because she was a start-up agency. Some colleagues advised her to join another agency – an idea she immediately dismissed. “This was going to be a lifelong career,” she says, explaining that she didn’t want to devote decades building someone else’s book of business only to be left with nothing in the end.
She was determined to launch her own agency, but to succeed, she needed support, and decided a network partnership could provide a way forward.
Choosing a Network Partner
Thanks to her insurance experience, Brittany knew how important it was to choose the right partner, and she also knew exactly what she needed out of that relationship. She looked at more than 15 networks, using a spreadsheet to track and compare all of her different options. “Then, I reached out to Smart Choice and I got to talking with Mike and we just hit it off,” she says, referring to Mike Miller, Minnesota Smart Choice state director. She liked Mike’s personality, and she also felt comfortable with the company and its business philosophy. Brittany decided the agency network was the perfect fit for her and decided to take the leap to sign up.
More than six years later, she has no regrets. “I wouldn’t do anything differently because I don’t know how I could have built a multimillion-dollar book of business agency any other way.” Smart Choice has given her the carrier markets she needs without massive production requirements, and that’s been critical to her business growth.
Support Without Strings
Brittany’s intuition told her to go with Smart Choice, and so did the numbers.
Some of the other networks she interviewed wanted a sizable amount of money upfront (around $12,500). Others wanted 30% of her sales, and access to business she wrote and accessed outside of the network without their help (which didn’t seem fair). Many also wanted a cut from the agency when she eventually decided to leave or sell out.
Brittany came from a long line of independent insurance agents, and the “independent” part of the equation was exceptionally important to her. She was also concerned with the idea of a large startup fee. “What it tells me is that they’re in the business of profiting up front,” she says. “It’s really concerning because you’re paying all of this in the beginning and you don’t even know if you’re going to see that return.”
Smart Choice gave her the carriers she needed without any upfront costs, and they have proven to be a valuable resource in other ways, as well. As an experienced independent agent, Brittany hasn’t needed much handholding, but she still appreciates the tools that Smart Choice provides, and she also likes attending their meetings. “I attend most Smart Choice meetings and I find them to be very informational,” she says. “They’re also a wonderful place to network. I’ve met some great reps and developed some key relationships,” she adds.
Carving out Success
Brittany’s grandfather was right; she really did have a knack for insurance, probably due to her exceptional people skills. “I like to connect with people and find them great rates. Even more, I enjoy getting to know my customers and building relationships,” she says.
Brittany has been with Smart Choice more than six years now. She has some contracts outside of the network and appreciates the flexibility that offers her, but she also earns a good commission rate when she uses Smart Choice.
“I hit leadership level with Smart Choice after about 18 months,” she says. Smart Choice provides a 70/30 commission split, but the network’s cut is capped once agents reach leadership level, and then they earn 100% of their commissions.
“We are still growing,” Brittany says, adding that even though the market has been tough recently, she’s not sliding backward. “We’re over that $2.5 million dollar mark.”