When choosing a franchise business, you need to look at a lot of different factors and consider the right things. Not every franchise opportunity is made the same and not every company will be built for you.
You need to find your passion. Something that sets your soul on fire. Something that you wouldn’t mind spending your life savings to purchase.
A company that shares the same values as you do. When franchising a business, you are taking the responsibility of someone else’s brand that they built. And you need to be ok with that as well.
But remember, this is still your business. This business is yours. This business is something that you have to take seriously. So when you look at opportunities, make sure that you choose the right fit.
Today, we’re talking about Goosehead Insurance. I’ll be going through the entire opportunity to make sure that you know what you’re getting into. Or not getting into if you choose not to.
Either way, by the end of this, you will have more details and information to base your decision off of. And that’s the important part, right?
No one should ever go into a business when they have no idea about the nitty-gritty details.
So, grab a cold drink and get out your reading glasses. It’s about to go down.
About Goosehead Insurance
So what is this Goosehead Insurance that I speak of? Only the fastest growing insurance agency around. The insurance agency with world-class agents and cutting-edge technology.
Only the best services for the best customers. Goosehead Insurance provides excellent services and the ability to choose policies from almost 100 different carriers.
It’s no wonder why they are fast-growing, well-loved, and appreciated.
With the variety of insurance agencies on the market today, it can be difficult to find the best one and find the right fit for you and your needs.
Goosehead Insurance provides more than the average number of agencies for you to choose from.
So, the chances of you not finding what you need are extremely slim. Their franchise opportunity is growing pretty well too.
It’s obviously a great opportunity, but will it be the perfect piece of business for you?
Will it fit your personal and professional needs?
Or will there be something better?
Chances are, there may always be something better. But when you see something great that you love, snatch it up! Maybe Goosehead is your answer.
Here’s the low down on this franchise business.
Franchising Cost & Requirements
Goosehead Insurance is a great company that offers a wonderful service. But is there franchising opportunity just as good? There are a few things that we need to consider.
But first, we’ll check into the growth and turnover rate of the business.
In 2011, there were only a total of zero outlets. Yup, zero. Ziltch. Nada. However, that number grew drastically to 292 operating outlets in 2017.
So yes, that’s a very good amount of growth, especially for an insurance agency. But how does Goosehead stand up to the turnover rate? Honestly, not good.
The turnover rate for Goosehead Insurance is pretty high at 16.59 which is in the risky area. But this isn’t the only negative about this opportunity.
Unfortunately, while the investment and franchise fee isn’t too bad, their ongoing fees are pretty high. The franchise fee is between $35,000 and $60,000 and the total investment is between $60,000 and $180,000.
So that’s honestly not too bad for this type of franchise. However, when you take a look at the royalty fee, which you have to pay base on your gross revenue, the percentage is 20% and the advertising fee is 2%.
The royalty fee is over triple the amount that the competitors choose to require. The initial franchise agreement also requires 10 years of your life.
Although you can renew for 5 years at a time. The length isn’t long at all. But that’s probably why the investment isn’t too high.
When franchising Goosehead Insurance you also receive no territory rights to your franchise. There are no discounts or refunds available either.
So you need to be entirely sure that you want this franchise and you will be dedicated to making it work. Which these both are another disadvantage to this business.
But you’re probably not here to hear all of the bad stuff about this opportunity.
Although, you do need to hear some of the bad to appreciate the good, right?
So, let’s add some benefits to the mix, shall we?
You will be receiving a high level of financial transparency with Goosehead Insurance.
This company shares data on top performing locations, as well as quarterly and system-wide revenue averages.
Take it Home
There are thousands of franchise opportunities that are available for you to choose from.
No matter what industry you decide on getting into, you can be sure that there is something out there that fits your needs and values.
There can be a list of benefits to franchising certain companies, but you always need to watch out for certain speculations and issues.
In Goosehead Insurance, there are a few benefits to franchising their business.
However, there are also a lot of negatives to this opportunity. The royalty fee is extremely high and so is the turnover rate.
To understand the reasoning behind the high turnover rate, you would have to contact the company directly and ask further questions.
What type of questions should you ask?
Well, for one, you deserve to know why the turnover rate is so high. How many outlets terminated their agreement and how many of these were just from non-renewals?
You also should find out how often you have to pay the royalty fee and if there is a minimum that needs to be paid. Either way, in the end, the decision always is up to you.
Goosehead Insurance is definitely a wonderful company, but the franchise opportunity would need more details and information requested to figure out if it’s the best for you personally.
Why I Prefer Lead Generation, A Scalable & Thriving Business, Versus Franchising In 2018
As passionate as I am when it comes to business, especially in sales, I delve into different business models over the years to see which works and what not. Seeing how their system works, there is no doubt the lead generation business tops them all.
As I said, the lead generation business itself is a thriving one. Nowadays, there are more and more potential customers lurking around the internet in search of something worth buying.
To the small business owners’ eyes, it’s a gold mine. All they need is to provide access to this online lounge, where most of their target market hangs out. It’s a simple logic, however, in reality, the process is tedious.
Being ranked on Google’s top page is the end goal to make sure the users can see the business. There’s nobody who will search for businesses on page 50. Not even on page 5.
The majority of the local businesses fight over the rank on the top page against the Giants of their industry.
Once the lead gen site successfully lands on the top page, it’s assured it generates more leads to deliver to them in exchange for the monthly paycheck as agreed.
Although it requires more or less 3 to 6 months before each lead gen sites rank, the 95% of the profit margin is guaranteed at the end, which will become your passive income. You’ll get paid per month for the next 10, 20, 30 years as long as there is the internet.
Take a look at my first lead gen site for a Limo company in Lansing, MI. I created the site for 6 hours but I keep earning $750 per month since 2014 without even touching a single thing on the site for years.
Of course, in every massive amount of ROI needs an amount of sacrifice from the beginning. No business thrives with sloppy work. It entails consistent hard work, everyday hustle until you see the great results you want.
This is where the lead generation coaching program comes in. It’s an amazing program that gives you the opportunity to learn the very important fundamentals of earning millions with laser-focused mindset.
It gives you the avenue to hone your financial confidence responsible for earning more money without being too sales-y to your clients. That confidence that gives you the capacity to build your wealth quick without worries.
The program also teaches you the EXACT steps I, as well as other successful online entrepreneurs, did and mastered over the years en route to our 6- to 7-figure income per year.
To date, I own a 100 lead gen sites generating leads for 45 clients, which gives me $50,000 monthly in residual income. If we do the math, it’s $600,000 at the end of the year and beyond.