Can I Join an Insurance Cluster as a New Agent?

October 21, 2019
By: Voldico

Is an insurance cluster a viable option for your new agency?

Insurance can be a rewarding career, but for new agents, overcoming initial obstacles can be a frustrating — even disheartening — experience. 

At times, it may seem like your career is never going to get off the ground, let alone take off and become profitable for the long-term. 

Finding new leads, competing with online sales direct from carriers and “big” agencies, and making sure you do all you can to nurture the clients you do have can seem overwhelming. 

In today’s evolving insurance marketplace, even established agents can have a difficult time selling insurance products and retaining clients. When you’re new to insurance, it can be especially difficult to maintain a positive outlook and attitude.

Consider Joining a Cluster: Here's Why

Networking can be a great way to deal with all these challenges, by providing you with the support, experience, and expertise of established agents and agencies. 

In the insurance industry, joining an insurance cluster is one of the best ways to network effectively. Why? Because once you join a cluster, you have access to all the benefits, including some pretty powerful cost savings that can help you build your reputation, your business, and your bottom line more quickly than if you’re working alone. 

As a member of an insurance cluster, you’re privy to new leads and new products, and you can even share resources, like technology, marketing services, and even staffing. 

Because of their size, insurance clusters can often negotiate much better deals with major insurance carriers. And as a member, you can share in those deals and profits as well. Of course, as with any other networking group, insurance clusters can vary in terms of the perks they offer — and also in terms of their membership requirements.

For new agents, one of the biggest variable factors is your ability to join. All insurance clusters have membership requirements, and not all clusters accept new agents. Some clusters will only accept established agencies with minimum premium volumes. Others only accept existing agency members but restrict new agents until they achieve a certain degree of experience and success.

You’ll also need to be ready to pay an initiation fee (which can run from several hundred to several thousand) and a monthly or annual membership for most clusters. Monthly or annual fees can either be fixed or based on your monthly commissions. Some clusters require additional documents, like an agency profile report, with the application. 

Selecting the Right Cluster

Joining an insurance cluster offers lots of benefits to new agents, as well as established small- to medium-sized agencies. To tap into all those benefits, you need to do a little homework first to ensure the cluster you join is the best choice for your needs and your professional goals.

The best way to make your selection: Spend some time this week or this weekend visiting websites of a few of the top clusters in your niche. Learn all you can about the clusters you’re interested in, including the carriers with whom they work, the types of benefits and services they offer, their fees and their membership requirements. It might take a little time, but in the end, a few hours invested now could help you reap big rewards in the future.

Click here to learn why you should consider joining an insurance cluster like Voldico.