prospectsforagents

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Pros and Cons of Joining an Insurance Cluster or
Network
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Is joining an insurance cluster or network the
best solution for your independent agency?
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The insurance industry has become extremely
competitive and many independent agents are
overwhelmed with trying to manage all the moving
parts of their agency. Some agents are even
struggling to keep their heads above water.
If you want to remain in business for years to
come, your agency should run like a well-oiled
machine, not a bottleneck. With the membership
benefits of a top-notch insurance network, you
can focus on selling insurance and providing
outstanding customer service, without losing your
status as an independent agent. 
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What Are Some Benefits of Joining an Insurance
Cluster?
Greater access to desirable carrier markets
Through collective bargaining efforts, networks
offer a viable solution for agencies to acquire
markets and services through attractive carriers
to which they might otherwise not have access.
You remain an independent agent.
Though you are joining a cluster or network, it
is not like a merger or acquisition. You remain
an independent agency, you continue operating
under your current company name and appointments,
you receive commissions directly from your
carriers and you retain your current marketing
and underwriting contacts
Access to top-tier marketing and sales support.
Some networks, like prospectsforagents, provide
full operational support, including payroll
system management, data entry, claims services,
accounting, profit/loss reports, monthly reports,
acquisition and conversions strategies and
management services.
Networking and information sharing with
like-minded professionals.
With some insurance networks, you have the
opportunity to participate in networking events
like conferences, annual meetings and user groups.
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What Are Some Disadvantages to Joining an
Insurance Cluster?

• Inferior leadership and direction at the top
  level.

• Membership fees and penalties.

• Lack of common goals and vision among members

• Separation challenges.

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Inferior Leadership and Direction at The Top
Level.
 In order for a cluster or network to be
successful, the managers and leaders at the top
need to work together as a team and make
decisions that have the networks best interests
in mind. 
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Membership fees and penalties.
Since each network contract is unique, and
probably a little confusing, agents must invest
the time to understand what they are getting
intoin other words, read the fine print!
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Lack of Common Goals and Vision Among Members
When you join a network, you join a partnership,
but there is no formal commitment. When a
network member leaves with their book of
business, a void is created with markets and/or
shared expenses. This could be fatal to a small
cluster or network. It is important that all
members share a common vision for the cluster and
are willing to put in the time to make it succeed.
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Separation Challenges
Walking away from an insurance network can
sometimes be difficult. In fact, it is the
number one challenge reported by industry experts
and agents involved with networks.
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LETS TALK CONTACT INFORMATION
Website
www.prospectsforagents.com
Phone Number
1-866-701-1558
Email
info_at_prospectsforagents.com