Thoughts for the Producer Considering Insurance Consulting

The producer contemplating a move to consulting within an agency has some issues in common with the independent consultant. There are also some unique issues:

Will you move your current clients to a fee / consulting model? Will you have both fee and commission clients? How will that work? Will your fee clients see the commission work as a conflict?

Will new clients all be on a fee basis or will you also continue to sell insurance? Similar issues as above. How will you choose who goes on a fee basis and who is on a commission program?

How will you set your fees? Will you charge by the hour? How about staff / CSR time? Will you set a fixed fee for the account? What will be the basis of the fee?

How do you share fees with the agency? Will you split the fee? Will new business receive a different split? How will the agency be paid for support services? Are fees a part of any buyout provision in your employment contract? How does the your non-compete address fee clients if you should leave the agency?

In addition to the agency marketing program, how will you market yourself? Consultants are experts, not salespeople. The marketing of consulting services is a more personal / individual process. The focus is on expertise and value instead of a product. Will you speak to groups? Can you write articles for publication? How will you change the public’s perception of you from salesperson to consultant?