It’s 2011 and the market is as soft as can be. Independentagents going it alone are finding it increasingly difficult tomaintain steady business, let alone grow new business. Customerneed has shrunk, as has sales revenue for agencies of all sizes.Customers are demanding more options, better rates and exceptionalcoverage for the premiums.

Yet agents are finding ways to meet the growing demands ofcustomers. Some are joining forces in agency networks—also calledassociations, aggregators and marketing groups—to get the supportthey need, find better rates and find those options that customersare expecting.

Same idea, different approach

Some of the more prominent groups—including Assurex Global, The ISUNetwork, IroquoisGroup, KeystoneInsurers Group, and ARMInternational—offer benefits ranging from networkingopportunities to education to political activism. But not allnetworks may be right for you. Each has its own focus, motives andbenefits that may or may not suit your particular businessmodel.

Michael Pampalone, Jr., an independent agency owner inMerrillville, Ind., noted that some of the memberships he’s paidfor didn’t provide the value he’d hoped for. “I’ve been a member ofa number of associations that don’t help at all,” he said.

Instead, agents like Pampalone find more value in theconnections he’s made through independent agent networks thatoperate as an insurance agency network without a third-party profitmotive.

“It’s more about the relationships with agents that sharea lot of the same values and type of business, so we can help eachother.”

Is your agency ready for membership in a network? If you’relooking for increased access to education, products, territories,or resources, the answer could be yes. The key is to define yourgoals and determine if a network can help you attain those goals.

When looking for an agency network that fits with your needs,consider the following:

• Is the network a member-driven group, or does the group dictateterms to its constituents?
• What is the network’s motivation: political, educational,networking, trade, or increasing its own product penetration? Howdoes that align with your goals?
• Does the network offer exclusive products/services to itsmembers?
• How often are the national meetings? Are there also localevents?
• Are decisions made by a board or is the membership involved ineverything from choosing products to voting on new members?
• Do members have access to a strong referral resource?
• What partnerships has the network made and how is thatbenefitting members?
• Is the group actively seeking new business opportunities?
• Do they offer regional products and programs?

Ideally, the network you choose should align with your existingbusiness practices and not require much change, if any, to how youoperate. Also, look for a network that is owned and directed by itsmembers, and one in which members set the agenda, and one that isflexible, innovative, and works toward the evolution of thenetwork.

If you’re looking to increase your business potential, tap in toexclusive products and partnerships, or take advantage of pooledresources and knowledge, consider carefully if an agency networkcan help you meet those goals. If so, choose a network that bringsplenty of bang for your membership buck, and allows you to operateyour business the way that best suits your needs.

Independent v. Aggregator: Which WorksBest?

The toughest choice you must make when considering associationmembership is whether to maintain independence or join anassociation or aggregator relationship that requires agents to droptheir independent status in exchange for access to products andsales opportunities. Most associations, including aggregatororganizations, hold regular meetings and events designed to educateagents and help them improve their business processes. Others willinclude products or educational programs. Also, a goodassociation will offer both national and local support.

The largest difference between the two groups is how theirpolicies affect you and your agency. There are advantages to eachgroup.

Choose an aggregator if:

• You prefer specializing in one product line
• Independence is not a primary concern
• You don’t mind having the aggregator brand as your agency’s newname
• Control over the association’s direction isn’t important toyou

Choose an independent association if:

• You prefer selling products from a number of insurers
• You want to maintain independence and your agency name
• You need access to a large contingent of knowledge andresources
• You want a strong voice in the focus of the association