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CAPTIVE Insurance Agent PROS and CONS: Captive vs Independent Insurance Agent TIPS FOR BEGINNERS - YouTube
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So if you're getting into the life and
health insurance business you've got one
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of two options: you can go work for a
captive organization or you can become
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an independent agent. Today I'm going to
explain to you the good and the bad of a
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captive organization.
My name is Jeremy Smith and over the
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past 16 years I've been an agent, a
manager ,an owner operator and for the
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last six years a business coach
traveling the country to help insurance
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agents grow their practice and today I'm
gonna try and help you grow yours. If
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you've been on YouTube before then you
know the game please hit subscribe and
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ring the bell. So for me I started my career working at
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a captive agency for about two years and
it was a great place for me to start. I
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think it's a really great place for
anybody to start. It may not be the
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ultimate place that somebody wants to be
at but for me it was a really good place
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and so I want to tell you some of my
good experiences and some of the bad
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experiences. So let me start with the
good about captive organizations.
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Training is probably one of the the best
things about a captive organization. As
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long as you're with the right captive
organization you're gonna have a really
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good hand holding experience while you
learn the business. For me I went to work
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for a company called Great American. You know back in the 15 - 16 years ago and my
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process was this: we went into a full
week boot camp where they taught us
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everything we needed to do when we were in the field, week number two we went out
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into the field and we watched somebody
do what they taught us in the boardroom,
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week number three I went out and I did
it myself with a manager critiquing me
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after every appointment and polishing
the sword. It was a very well thought out
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training process and then we had
trainings every single week polishing
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that sword even further. It was such a
good experience as somebody that was so
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green around the ears and
didn't have any clue what I was doing in
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the business. The other big thing that I
experienced was a very documented and
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detailed marketing system. The company I went to work for we did seminar
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marketing so it was it was laid out how
many phone calls we need to make, here's
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where I got the list, how many people I
needed to say yes to come to a dinner
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seminar, how many of those people would actually show
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up. We learned this stage how many it was documented exactly how many of those
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people were gonna sit with us, how many
of those people we would go write
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business on. It was all very streamlined,
very documented, very detailed, very
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high-level - as opposed to just here's a
bunch of leads or make a a warm list of
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all the people you know and go get them
tiger.
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Another thing the captive organizations
the right ones once again are really
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good about is giving you structure which
as a newbie a young kid when I got into
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the business knowing what I was supposed to do every day, every week knowing what
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my agenda was. It was laid out from the
training processes to when my
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appointments - when my seminars was
really helpful to me and maybe the most
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underappreciated benefit that a captive
organization has is could be defined no
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better than just by saying the word
culture. Every day in the hallways there
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was a whole bunch of like-minded
individuals headed the same direction
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that I was headed. Kept me inspired. I
learned through osmosis from their
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successes and mistakes. It was just a
really good experience for me to be
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around a whole lot of people doing the
same thing as opposed to maybe working
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it in my basement by myself. It was a
very good experience for me but
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ultimately there was a couple big
problems that I found after I got that
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education and I started getting my
confidence and I kind of knew what I was
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doing and this is pretty universal. No
matter what captive agency you go
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work for the big difference between a
captive agent and an independent agent
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the biggest one is comp. It's
normally on average maybe about 50%.
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That's a big difference. On average for
example on a life insurance policy for
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an independent insurance agent they're
probably making on average 120 - 125%. My
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comp when I was working at a captive
agency for selling that policy was 55%.
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So there's a big financial incentive to
graduate into the independent world. The
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other problem that I had with the
captive agency was that my product
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offering. It wasn't just Great American. I
did have access to be able to sell a few
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other companies, but I didn't have the
full slate of an independent agent.
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And when you've got the full slate it
really takes a lot of the selling out of
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insurance sales. When I can go to a
client and say "Hey you've got a problem?"
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Here's the solution. Here's how it works
and here's every company in the country
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that offers that. Here's the price tag.
Which one do you want? That's a very
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different experience than me trying to
sell them and convince them why they
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should buy my product. I've become much more of a an advisor to them as opposed
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to a salesperson. Okay the other big
thing is this and I can't say this for
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every Captive organization but I'll tell
you that a very very high percentage of
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them work this way. When I went to work
for them I signed a contract that said
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that they owned my clients and not only
do they own my clients but they own my
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residuals. There was a vesting period
before I really even owned my residuals.
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My residuals if I left that company. So
when you go independent you actually own
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your client database and you actually
own a hundred percent of your residuals
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of everything you sell from that point
forward. You're being able to offer
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all products and your compensation is
dramatically higher no doubt I don't
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know what the percentage number is maybe fifty percent maybe higher in some
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scenarios. Again I'm not knocking captive
agencies I think it's a great place to
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start. I personally believe that
ultimately the goal should be to evolve
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and eventually get to the independent
side, but hopefully that helps and gives
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you some feedback on what you should be thinking about if you're gonna go the
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captive route. Please do me a favor and
like and comment below and make sure
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that you stay tuned to the next video
that we're about to put on where I'm
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gonna talk to you specifically about the
questions that you need answered when
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selecting a captive organization. Thanks
for being with us. I hope it was worth
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your time and we'll look forward to
seeing you in the next video.
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