Not everything works for everyone, and no BGA is a universal fit for every agent. If you’re unhappy with your current BGA, you should watch out for red flags that may indicate it’s time to switch. Your livelihood depends on the business relationships you form. As a financial advisor, one of your most critical relationships is with your BGA, so you need to make the most of it by prioritizing.
Following are seven warning signs that it may be time to look for another agency.
Reason #1: Slow-moving technology
A BGA who embraces technology is essential to your success. At the very least, they should provide 24-hour access on their Web site to product training, rates, client applications, and agent contracting materials. If your BGA has yet to integrate technology into their business for the benefit of you and your clients, you will be doing your clients and yourself a disservice.
Reason #2: Poor profiling
Your BGA should spend time learning about you and your practice. Unfortunately, many spend too much time talking to you about themselves. You are the customer. If your BGA doesn’t let you get a word in edgewise, find a new one that will invest the time necessary to learn what your needs are and try to meet them.
Reason #3: Smoke-and- mirrors recruiting
Some BGAs use empty promises to motivate agents to contract with the company. Free leads, client appointments, and bonus trips are all popular gimmicks. Honesty is the best policy. If your BGA just isn’t walking the walk, it’s time to move on to one that does.
Reason #4: Insurance company ownership
You might be surprised by the number of BGAs that are owned by insurance companies.
A BGA owned by an insurance company can’t ever be truly independent. BGAs that are owned by insurance companies may have strong incentives to recommend the products issued by the parent insurance company.
Make sure you know the status of your BGA’s independence. Web sites can help you learn which BGAs are owned by insurance companies and which aren’t.
Reason #5: Bad back-office support
Among brokerage agencies, all of them offer the same types of products. But what they don’t all offer is agent service. If your BGA is not performing most of the policy manufacturing, you’re spending less time selling. It goes without saying that that should never happen.
Reason #6: Antiquated products
Products and markets evolve. Your BGA should be keeping up with the times, offering more cutting-edge products that clients are beginning to gravitate toward. The only thing constant in our industry is change. Don’t get stuck in a rut with a slow-moving BGA.
Reason #7: Lack of leverage
There are times when you might need a special dispensation from the home office. Your IMO should have enough influence with the insurance company to call in a favor when you really need it. If not, it can be difficult if not impossible for them to meet your needs.
The bottom line
Relationships require effort, so make sure to spend time with your BGA in order to maximize the opportunities they make available to you. Don’t assume professional relationships will be healthy or productive if you don’t work on them.
If the relationship with your current BGA is not a good fit for you, talk to them about it. If it’s not working for you, it’s probably not working for them. Even if a marketing company is not willing to give you a release, you can usually transfer without asking for their consent.
Ending a relationship is a big decision. It’s uncomfortable and unpleasant. But living and working below your potential is very uncomfortable and counterproductive. So carefully consider your options when evaluating your broker/agent relationship.
Ron W. Rawlings is principal and founder of Dallas Financial Wholesalers, a national marketing organization. He may be reached at 800-746-8397.