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Re: Broker vs Captive.

Posted by George on October 25, 2002 at 16:48:45:

In Reply to: Broker vs Captive. posted by Klaas DeWit, LPT, MBA on October 23, 2002 at 18:50:55:

: I have read several posts on this message board and it seems to me that many people believe (probably brokers) that it is better for a client to visit a broker. Their rational is that they will truly serve the client best, as they will not always recommend company "A", like a captive agent will.

: I beg to differ. A broker still has incentive to recommend one certain company, the one with the highest commissions... Or the one with the lowest premium, to make an easy sale. Not always best for the client.

: I feel that a captive agent knows his company best, better than a broker, who has to know many companies.

: A client is best doing homework, and that involves time. Schedule an appointment with let's say 3-4 agents. Tell them, "I want this (to avoid the boring time consuming sales talk), but I am thinking about company A, B, and C. Whys hould I go for yours"

: Do this with all agents, and you will get a competitive analysis, including the drawbacks of other companies.

: Yes, this will cost some time, but we are frequently advised on this message board to do home work.

: Klaas

One of the biggest reasons a person chooses to be a captive agent is for those "free leads". Company leads are always a crap shoot, and one may, or may not, dumb luck their way into some sales. In the long run, most agents finally come to see they have to do their own marketing to be successful. When that becomes the case, it is better to have more than one option for your clients, hence the need to go independent. There will always be a few captive agents that make a go of it, and their respective companies will tout them as the norm to attract new agents. The reality is, most new captive agents starve and quit. Some will find the road to success through being independent, which, in my opinion is the better way. I speak from experience. My 2 cents.

Follow Ups:

Re: Broker vs Captive. : : I have read several posts on this message board and it seems to me that many people believe (probably brokers) that it is better for a client to visit a broker. Their rational is that they will truly serve the client best, as they will not always recommend company "A", like a captive agent will. : : I beg to differ. A broker still has incentive to recommend one certain company, the one with the highest commissions... Or the one with the lowest premium, to make an easy sale. Not always best for the client. : : I feel that a captive agent knows his company best, better than a broker, who has to know many companies. : : A client is best doing homework, and that involves time. Schedule an appointment with let's say 3-4 agents. Tell them, "I want this (to avoid the boring time consuming sales talk), but I am thinking about company A, B, and C. Whys hould I go for yours" : : Do this with all agents, and you will get a competitive analysis, including the drawbacks of other companies. : : Yes, this will cost some time, but we are frequently advised on this message board to do home work. : : Klaas : One of the biggest reasons a person chooses to be a captive agent is for those "free leads". Company leads are always a crap shoot, and one may, or may not, dumb luck their way into some sales. In the long run, most agents finally come to see they have to do their own marketing to be successful. When that becomes the case, it is better to have more than one option for your clients, hence the need to go independent. There will always be a few captive agents that make a go of it, and their respective companies will tout them as the norm to attract new agents. The reality is, most new captive agents starve and quit. Some will find the road to success through being independent, which, in my opinion is the better way. I speak from experience. My 2 cents.

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