I was an agency owner for over two decades. I left because there have been significant commission cuts, and because in my opinion, their commitment to the agency force is very much in question. For several years, what they refer to as the "Agency Evolution" has been in process. This seems to mainly consist of incrementally cutting base commission each year, while claiming that bonus and additional compensation for high production will offset the changes. The problem is, they roll this out year by year without giving their agency owners a clue what the following year will hold, making it all but impossible to plan for the future. I can't imagine that there is an agent out there that doesn't dread each fall when they announce what the following year will hold. Last fall they announced that comp for writing car insurance would in many cases be half of what it was the year before, which on average will not be enough to cover the cost of marketing/staff required to write the business.
The percentage of new policies written through their agencies has also fallen dramatically. This seems to be because they now advertise in direct competition with their agents, and their online presence dwarfs what any agency can afford. Plus, the cost to the consumer is less if purchased online or through the 800 number than if they purchase from us.
There still may be an opportunity to be wildly successful, if you are willing to invest in staff, keep growing, and sell your agency at some point for a great deal of money. However, there is also a vesting period now, so if you are unable to make it to the end of that time period, they will not pay even the minimum to sell the agency back to them, and with the commission cuts, finding an outside buyer is in my opinion getting much harder, and the amount they will pay is decreasing.
