5 Questions to Ask Before Joining a Network

Read Time: 5 min

This post is written for established P&C agency owners who are evaluating whether an insurance network or aggregator is the right move for their business. If you're a licensed producer just starting to build your book, check out our Pathway Program instead.

If you're an established agency owner considering joining a network or aggregator, you're not alone. More agents than ever are evaluating whether a network can help them access better markets, earn higher commissions, and grow faster than they could on their own.

But not all networks are built the same. Some offer genuine value. Others lock you in, take a cut of your contingencies, and make it nearly impossible to leave. Before you sign anything, here are five questions every agent should ask.

1. Are the carrier appointments direct — or am I a sub-producer?

This is the most important question on the list, and it's the one networks hope you won't ask.

When you join a network, you can receive carrier appointments in two ways: direct appointments, where you have your own relationship with the carrier, or sub-codes, where your business flows through the network's master code.

Direct appointments mean you own the relationship. You have direct access to underwriters, you participate in profitability bonuses at the carrier level, and if you ever leave the network, you take your appointments with you.

Sub-codes mean the network is the middleman. Your commissions run through them. Your bonus participation may be shared or withheld. And if you leave, you may lose carrier access entirely.

2. What happens to my book if I leave?

Your book of business is your most valuable asset. It represents years of relationships, renewals, and hard work. Before you join any network, you need to know exactly what happens to it if you ever decide to move on.

Some networks have aggressive exit provisions — requiring you to sell your book back to the network, pay exit fees, or compete with restrictive non-competes.

Ask for the exit provisions in writing. Read them carefully. If a network won't let you leave freely, that tells you everything you need to know about how they view your relationship.

3. What's the real commission split — on every line?

Commission splits are the headline number, but they're rarely the whole story. Some networks offer a top-tier split on personal lines only. Others apply a higher split to direct appointments but a lower split on brokered business. Some have production thresholds you have to hit before your split kicks in.

Before you sign, ask for the commission schedule in writing for every line you intend to write — personal, commercial, and financial services. Ask whether renewals are paid at the same rate as new business. Ask what happens to your split if your production dips one year.

The answer should be simple, clear, and in writing. If it isn't, that's a red flag.

4. Do you retain any of my carrier profitability bonuses?

Profitability bonuses from carriers can represent a significant portion of your annual income — sometimes 5–15% of earned premiums depending on your loss ratio and volume. They're not guaranteed, but for agents who manage their book well, they're real money.

The question is: who keeps them?

Some networks retain the majority carrier bonuses at the network level, sharing only a fraction with member agents. Some networks keep it all. Others pass bonuses through to you. The difference can add up to tens of thousands of dollars per year depending on your book size.

Ask specifically: "Do you retain any portion of carrier profitability bonuses that are attributed to my production?"

5. What are the entry and exit fees?

Some networks charge an entry fee to join — sometimes hundreds, sometimes thousands of dollars. Others charge monthly desk fees. Still others have exit fees or clawbacks if you leave before a certain date.

None of these fees are inherently wrong if the value is there to back them up. But you should know about them upfront — not buried in page 14 of your contract.

Ask for a complete list of all fees associated with membership: entry, ongoing, and exit. A network that's confident in the value it provides won't hide these numbers.

The Bottom Line

Joining an insurance network can be one of the best decisions of your career — or one of the most costly. The difference usually comes down to how well you understood what you were agreeing to before you signed.

Ask these five questions. Get the answers in writing. And if a network won't give you clear, honest answers to all of them, that's your answer.

At Sphere Group, we believe you should know exactly what you're signing before you sign it. That's why we pre-vet carrier appointments, put every term upfront, and don't charge entry or exit fees — ever.

Learn more about how the Sphere Group Partner Program works →