If you are considering joining a cluster, there’s good news…you have options!  The bad news is…you have OPTIONS!  Consequently, the best thing you can do for your agency is explore every option thoroughly to choose the best fit for you and your agency.

There are clusters that require zero premium to join and others that are looking for a significant amount of established premium to join so the answer to today’s question is, it depends. 

If you are a start-up agency with little to no premium, there are reputable clusters who are happy to help you get up and running.  In my opinion, having relationships with the carriers (as opposed to the cluster) is the most effective way to generate premium therefore when you are considering your options of different clusters, identify who will facilitate your agency getting appointments/relationships with the carriers and not who will place your business with the carriers on your behalf.  I believe this to be the most effective way as down the road, once you’ve generated a significant amount of premium through the cluster, you’ll find greater revenue & stability in a book that is strong with a few carriers rather than weak with many different carriers.  When your book is spread too thin amongst many carriers, you leave your agency vulnerable to commission cuts, terminations and loss of control of the account all due to low production with the carrier.