About Goosehead Insurance Franchise Fee

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Goosehead Insurance Franchise Fee vs. Covered by
Sage fee

• A basic comparison

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Introduction to the Insurance Agencies

1. Goosehead Insurance
2. Covered by Sage

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Goosehead Insurance

• An insurance agency that sells insurance in the
  personal line of business
• Uses the plug-and-play technology
• uses the franchise agency model

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Covered by Sage

• An insurance agency that sells insurance not only
  in personal line but also covers commercial,
  life, and health insurances
• Also uses the plug-and-play technology
• Uses the brokerage model

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A basic comparison

• Franchise fee and investment fee
• Additional fee marketing contribution, daily
  training fee, monthly technology fee

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1. Franchise fee and investment fee 

• Goosehead Insurance
• - Franchise fee - ranges from 27,000 to 66,000
  depending on state of the outlet.- Also charge a
  starting investment fee- Also a schedule of
  additional out of pocket fees
• Covered by Sage - No franchise fee or marketing
  costs- New proprietary technology without giving
  any fees- On boarding fee that is 2,500 upfront
  and after the seventh month it is 250 per month

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2. Additional Fee Marketing Contribution, Daily
Training Fee, Monthly Technology Fee

• Goosehead Insurance- Include a marketing
  contribution, a daily training fee, a monthly
  technology fee for first user and additional
  user- A transfer fee of the initial franchise
  fee- A royalty fee if agents do not make any
  sales
• Covered by Sage- No retail outlet requirement-
  Agent can virtually start their agency with no
  retail investment

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Commission splits

• Goosehead Insurance- 80/20 on personal lines
  50/50 for renewals
• Covered by Sage- upto 95/5 on personal lines
  depending on gross premium 50/50 for renewals-
  60/40 on commercial lines 40/60 for renewals

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Conclusion

• Goosehead a lot of financial challenges they face
  because of their business model
• Covered by Sage is giving easy options on the
  insurance agents
• Covered by Sage is also if insurance agents even
  if they want a piece of the market

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