Producers: Which is better…big broker or small?
I’m often asked, which is best – big broker or small?
My short answer is – neither is “better” but one is absolutely better FOR YOU.
I placed a producer with a large national broker client, and he’s put $1.4M in revenue on the books in 2 years.
On the flip side, I’ve seen producers doing $50k in revenue a year at an 8-person agency, working both small biz and personal lines, happy as a clam.
Producer #1 would be stifled in a tiny mom and pop agency whose carriers and sales techniques target small business accounts, and who lack the supports for large accounts. Producer #2 would likely drown in the former environment – the pressure he’d feel and the types of accounts he’d be forced to target would not be a fit.
There are also a whole host of producers (and brokers!) who land somewhere in between #1 and #2 described above.
As with anything in life, different strokes for different folks. It’s not a matter of what’s better, but rather a consideration of fit.
Here are the differences to consider, in my experience:
In my experience, here are the differences to consider:
Target business
Huge brokers will want you focused on huge accounts. This is hands down the biggest consideration and the one that will impact your day-to-day life the most. This can be a good thing:
👉 Large accounts are generally better bang for your buck timewise
👉 Large accounts have you focused more on strategy than clerical tasks
👉 Larger accounts = larger commissions
The downside to this is that you likely will have to hand off small accounts to a small business unit, or choose to handle them yourself but work for free.
While targeting larger accounts might be your focus, the notion that you point blank make no money on a small account (perhaps it’s your brother-in-law’s business, or a small client related to a much larger one) is frustrating – but par for the course.
The expertise required of large accounts can yield more income and opportunity for the right person, but there’s a place in the world for everyone. If you’re the type of producer who finds personal fulfillment in handling small town local businesses and Personal Lines clients, or isn’t comfortable presenting to c-suite execs, then a small shop who supports you focusing on smaller business is a better fit for you.
🤔 What kinds of business do you want to target?
Resources
You’ll hear this word thrown around a lot at the big shops. This one is interesting – it matters, but not always. If you’re targeting jumbo accounts that choose their broker by RFP and require certain boxes to be checked to even respond (i.e.in house claims, risk control, etc.) then yes, a broker who has these resources is critical. The reality though, is that for many mid-size accounts, this stuff sounds good but ultimately isn’t a critical factor. Plus, there are so many brokers out there claiming they offer these kinds of resources when they’re simply referring to support their carriers offer – but many clients don’t know the difference (or don’t care). When I was producing, I had the benefit of great in-house support and resources but in many cases, it wasn’t a deciding factor.
🤔 Does the broker you’re considering have the necessary resources to support the kind of business you want to target?
Visibility
Does “being a number” matter to you? When you’re 1 of 50 versus 1 of 5,000, leadership knows you personally. They know who you are and what you’re capable of. If you’re happy and making good money, you may not care about that.
🤔 Does being well-known vs. being a number matter to you?
Ownership
Do you care? If you plan to stick around for a long time, you probably should. The words “ownership” and “equity” get thrown around a lot, and can come in many forms.
🤔 What (if any) equity is up for grabs?
Goals
Bigger brokers usually have bigger goals. Are you comfortable with increased pressure to produce? (It’s OK to say no.) Again, there’s still a place in the world for the producer doing a consistent $50k a year. But if you want to “level up”, there’s no better way to do it than to surround yourself with top producing salespeople (which can be found in many different types and sizes of agencies). You are who you hang with, as they say! More aggressive goals often come with bigger commission splits/incentives for higher % once you exceed certain levels. But the pressure to hit those goals is stronger.
🤔 Bigger risk = bigger reward…Are you comfortable with bigger goals?
Growth
Do you want to just produce? (It’s Ok to say yes! It’s a good gig – great money without the HR headaches.) Or do you have your sights set on leadership? More employees = more jobs, simply by sheer volume. So a bigger company will have more jobs and thus typically more chances to move up.
🤔 Where do you see yourself in 10, 20 years?
“You know YOU better than anyone. If we all wanted to do the same things, the world would be a very boring place. Figure out what your style is and what’s important to you, and then do your homework! Someone great can find success anywhere, but it’s a heck of a lot easier if you’re in the right place!”
If you’re a producer (and live in the Southeast) and want to talk it through with someone who’s been there, schedule a confidential 15 minute chat with me. Once upon a time, I was awarded producer of the year at my firm, so I like to think I halfway know what I’m talking about 😊