Changing From Registered Individual to Appointed Representativeshootermk
In the good old days, when work was plentiful and the company you worked for was supplying you with an abundance of high quality leads, then a 60/40 or even 50/50 split on insurance commissions and proc fees didn’t seem so important. After all you could make a decent living and where the company provided full administration services as well as high quality leads, it was a relatively stress free life.
The current economic climate however has completely turned this situation on its head. If the company you work for can no longer supply you with sufficient leads and more of your work is having to be self-generated, the percentage the company retains is unacceptable or you’ve grown into the role and feel ready to take control then you really should consider working for yourself.
Providing you are finding your own work, the decision really boils down to simple maths. It’s obvious that on a simple 50/50 split you are only going to have to do half of the appointments to get the same money, but there is more to consider than this. As an independent you will also get all of the renewal commission on GI insurance, you can control the way the business is run, and you build up a client bank so that within a few years, you can have a large client bank to fall back on for remortgages, referrals and insurance updates.
Just put your own figures into the graph above, if you are on a 60/40 split now, on an income of £30,000 pa, going independent could be worth £60,000 in 2 years, and remember the client bank and renewals are all yours!
Even if we leave money considerations to one side for a minute, wouldn’t you also feel better to be the driver of your business, rather than just a passenger? You know your clients, you know where they come from, how you generated the leads in the first place and how you could generate more.
The only caution I would add is that you need to make sure you find the right mortgage network to maximise your earnings and give your fledgling business the boost it needs to get established.
This is where we can help. Just click on the link below and fill in our enquiry form, where it asks for the last year’s figures just put in the amounts of business working as a registered individual, and in the section for additional information, tell us a little about your plans, such as how much you expect your business to rise or fall in your first year.