For insurance producers with an entrepreneurial spirit, a traditional corporate agency may seem limiting. The lack of equity interest in their book, decision-making power, and stock options as well as crippling noncompetes, can make you feel trapped in your position. Other options, however, do exist.
Apart from agencies where growth is mainly from mergers and acquisitions, an entrepreneurial or lifestyle agency provides a very attractive option for those who are able to make the move. These agencies offer equity interest in your book of business, higher commissions, equal commissions on both new and renewing clients, stock options, flexible schedules, less restrictive noncompetes, and more. Surprisingly, even when top producers discover the benefits of transitioning to an entrepreneurial agency, fear of the unknown and the loss of their book of business keeps them in their current position.
It’s understandable that someone might fear transition, especially if they have a significant, established book of business, good benefits, and perceived security. Below, we address some of the most common concerns producers face when they consider a transition, and we explain why it’s never too late to make a change in your career for the better.
Financial Insecurities Before Retirement
Many producers are concerned about losing their book of business and never regaining their financial footing even though an entrepreneurial agency offers higher commission rates. If you make the calculations, however, you may find that the financial transition and a return to the same client base or larger occur more quickly than you think.
Even if you decide to purchase your book of business, you can pay it off quickly due to the increased profits you’ll make from your new producer role. For a comparison of financials between a traditional agency and a lifestyle agency, see this side-by-side commission comparison calculator. The difference is surprising.
Concern for Doors Closing or Burning Bridges
Many individuals become fearful that leaving their position will close doors and opportunities that they’ve worked their entire careers to create. It may also concern you that you will burn bridges with co-workers, clients, and your superiors when you leave and potentially take clients with you.
Remember, your new path also will provide opportunities, including the ability to manage your own schedule, increased commissions, stock opportunities, and more. Entrepreneurial agencies also may have increased access to resources and training opportunities that enable you to continue to grow and learn.
Potential Impact on Personal Relationships
The stress of making a big change can hinder personal relationships. You may be concerned that you will lose time with your family and friends during the transition as you work toward recovering and exceeding your previous book size. Fortunately, this typically is not the case. Most producers boast additional free time with their family and loved ones due to the flexible schedule options, as well as increased commissions.
Make the Transition to Happiness
Transitioning from being one of the top insurance producers at an agency to the new guy at an entrepreneurial or lifestyle agency can incite trepidation for anyone. But once you take the leap, you won’t regret it. When you make the transition, you're the one who sets the limits of your professional and financial future. Don’t let fear hold you back from success and happiness.