Agentco Vs Smart Choice in NC- My Final 2 Candidates

[TeePee]

Try Farm Bureau. They have a huge turnover, but the chance of you getting hired by another copy is high because I believe that FB doesn't have a no compete clause like most companies.

What city are you in?

 

[djs]

NCPCLHnoob - You need to sit down with a P&C agent and really review your budget for the next 6 months. It will take $10K plus to get started if you want to do it right. Any method of trying to do it slow will make you fail. Sorry, but that is the reality.

Think about it, you have to market, cover overhead, and then think about buying some groceries. Marketing alone will run a fair amount of money in the early days. Assuming you already have computers, phone system, etc, let's take a back of the envelope budget for a startup P&C guy:

E&O: $250 a month
Rater: $220 a month (there are cheaper, but make sure it fits your marketing plan)
Management system: Survive the first 6 months without one, use Act or ZohoCRM, FreeCRM, anything to get you by for now.
Marketing: Big variances here, but you are probably looking at $1000 a month to start up. Can you do it for less? Probably not, but you might feel you can.
Phone: Even a cell phone plan will be $50 a month minimum.
Lead management system: Use Leads360 for free to start, then pay their $35 a month if you get to that point.
We'll add in $100 a month for postage, paper, envelopes, whatever.

I'm at $1655 a month (back of the envelope) just to have my doors open and do a little marketing. I'm not factoring in office rent, staff, management systems, taxes, or any of the other million little things that come up. I also have not factored in any of the startup costs of opening your doors, which can be pretty high.

Don't think you need to pay the price of the rater? You better have a clear focus on your target market, understand how to market and sell to them, and what it takes to get appointments to many carriers.

Please understand, I'm not trying to turn you off from starting, I'm trying to help you have a better understanding of what it will take to actually succeed. It's like if you say you will only spend $200 a month in marketing. That's fine, but how do you bring in business? More specifically, how do you bring in enough business to cover the rest of the bills?

Now, start to match the expenses with your expected revenue. Understand that your revenue projections will be high for the first few months. Heck, you won't even see a check for the first 2 months, then 2 months of checks you'll laugh at, then in the fifth month, you'll perhaps get the check you thought you would get in your first or second month.

Just reality.

Dan

 

[infoe]

NCPCLHnoob - You need to sit down with a P&C agent and really review your budget for the next 6 months. It will take $10K plus to get started if you want to do it right. Any method of trying to do it slow will make you fail. Sorry, but that is the reality.

Think about it, you have to market, cover overhead, and then think about buying some groceries. Marketing alone will run a fair amount of money in the early days. Assuming you already have computers, phone system, etc, let's take a back of the envelope budget for a startup P&C guy:

E&O: $250 a month
Rater: $220 a month (there are cheaper, but make sure it fits your marketing plan)
Management system: Survive the first 6 months without one, use Act or ZohoCRM, FreeCRM, anything to get you by for now.
Marketing: Big variances here, but you are probably looking at $1000 a month to start up. Can you do it for less? Probably not, but you might feel you can.
Phone: Even a cell phone plan will be $50 a month minimum.
Lead management system: Use Leads360 for free to start, then pay their $35 a month if you get to that point.
We'll add in $100 a month for postage, paper, envelopes, whatever.

I'm at $1655 a month (back of the envelope) just to have my doors open and do a little marketing. I'm not factoring in office rent, staff, management systems, taxes, or any of the other million little things that come up. I also have not factored in any of the startup costs of opening your doors, which can be pretty high.

Don't think you need to pay the price of the rater? You better have a clear focus on your target market, understand how to market and sell to them, and what it takes to get appointments to many carriers.

Please understand, I'm not trying to turn you off from starting, I'm trying to help you have a better understanding of what it will take to actually succeed. It's like if you say you will only spend $200 a month in marketing. That's fine, but how do you bring in business? More specifically, how do you bring in enough business to cover the rest of the bills?

Now, start to match the expenses with your expected revenue. Understand that your revenue projections will be high for the first few months. Heck, you won't even see a check for the first 2 months, then 2 months of checks you'll laugh at, then in the fifth month, you'll perhaps get the check you thought you would get in your first or second month.

Just reality.

Dan

This is what i meant when I asked about not having 10k for SIAA...if 13k is the total of what you have...unless your living with mom and dad and have that Virtual office we spoke of...it's going to be turtle pace till your business get's off the ground...not sure if you will keep at it. Most don't.

 

[NCAgent]

Yeah the consensus seems to be to try and be a producer for a bit and save up a little bit of money.

I live with 2 other people and bills are split 3 ways. So the funds aren't terrible for that. As for the E&O, according to E&O for less it's like 800 bucks for the actual E&O. However, I'm a little hesitant to use that E&O when everywhere else is like 2k or more. Any thoughts on that?

As for being a producer, the CRM and rater and everything are provided, as well as E&O. Therefore I have little costs associated.

If I was opening my own agency instead, I was thinking lower in terms of monthly expenditures, but I see where the 1600 is coming from. I figured that I'd use a landline at around 35 bucks (cell phone already in my home bills) and then use the rater provided from the carriers at first (even if I have to do it 2-3 times) just to save that cost at first.

I have approx 10-20 policies from people who just want me to write them due to affiliations so I have a little bit to start with I hope.

1k/month for marketing was what seemed high to me at first. Hell if I know the reasonable cost though since I'm new at this. I was going to do business cards, cold calling, leads (medicare has a list of leads available for a reasonable cost) and then b2b and d2d. I was sitting at around 400-500 per month starting out based on the area that I am at.

I'm near a bunch of apartment complexes, 3 colleges, housing developments, and strips of independent businesses that are reasonable to try and insure. I'm also planning on getting L&H licensed which I figured would help supplement income in the meantime; L&H are more up front in payment but little in renewals while P&C are lower but get more consistent renewals. Plus with 3 people prospecting in the same team (it's worked out already, don't even worry about it) I figured it'd be more realistic to get some initial premium since we all have different target markets.

DJS I really like what you typed up, it sounds very reasonable. And I'm not trying to argue with you, just trying to incorporate my circumstances to see if the costs are lower or higher than your projection.

I don't really believe in mailers, at least as a huge form of feasible prospects for the costs associated . I would mainly be going via word of mouth and referrals in the beginning and footing the rest. Business cards (maybe some magnet business cards). And probably some magnet placards on the sides of the cars we drive as well. Yeah costs are minimal right now and I'll expand out as I get more to work with...

Hope this helps flesh out some of the ideas. I know I'm lower in budgeting probably than necessary to start out the right way but I think it can be done, just with more time and patience. I'm definitely not in the for the quick buck

What are your opinions on this DJS? And anyone else for this matter. I'm totally open to criticism and feedback and will incorporate it into my plans.

 

[Bertolinoins]

I don't recommend starting an agency until you have the up front costs ($40k for me) and a years worth of living expenses in the bank. It is harder to get off the ground than you think it is.

 

[VolAgent]

And there are ZERO indy's in my area looking for a 1099 producer. I've called and communicated with over 60 places and they all are hesitant and refuse.

I highly recommend you find the reason for this. The fact no one wants to expand should be a huge warning sign. You don't want to just follow the crowd, but if no one wants to expand, there is probably a good reason why.

 

[NCAgent]

I highly recommend you find the reason for this. The fact no one wants to expand should be a huge warning sign. You don't want to just follow the crowd, but if no one wants to expand, there is probably a good reason why.

I was curious about this myself. I think a lot of these people prefer to have things on their own. A lot of them are niche markets (hispanics, asians, etc.) or mom and pop places with a husband and wife working there. The 60 agencies was a bit of a hyperbole but there are a bunch of captives here, and not as many indys. And because of the way the city is spread out it takes a long drive to get other places. And a lot of ones I called went out of business. Others did only life and health. And then a few I just got a bad feeling from and elected not to go; like one who wanted me to poach a book of business to them, another wanted me to franchise with a buy-in before any training, things like that...

So it's not just "oh I don't want a producer" some of them are like "oh you can't speak Spanish/Vietnemese" or "oh you're too far away" or "oh you don't have any commercial experience" and things. I'm a rather vanilla agent right now.

That and Allstate call center has pissed off a bunch of people in the call center and captives so a LOT of people are going into this right now I believe...

 

[Guest]

Work from Home, no office overhead,
You can get EXLYNX quickrater thru SIAA for $70 a month
You dont need a management system for a while, there is much less service work as an IA.
Go to car lots, they will send you a ton of business if you are home at nights and weekends
SIAA will do a certain amount Down with monthly payments, their monthly fee is a % of your commission., sit with the MA and discuss it.
Without Marketing money, you can be about $1,000 a month to start up.
Realize, as an IA, you will write probally 80% of the people you quote, so you can grow fast if you make the phone ring.

 

[djs]

I agree, without getting into much details. The $1000 a month, without marketing money sounds about right, but then, you do have to find a way to make the phone ring.

Ezlynx is okay (I actually use it for some of my business), but in California, for a lot of carrier appointments, you really need FSC, which is simply a lot more expensive. It's the big dog, but it is nice when you are sitting with a client to be able to help them 'comparison' shop against virtually every other carrier out there.

Most startup agents I see signficantly cut short any sort of marketing plan. There are definitely ways to do it for less, ways to do it for more, but you need to think this through and understand that you need your phone to ring to write that 80%. Writing 80% of 2 phone calls simply doesn't work.

Dan

 

[TeePee]

Again, what city/area are you in?

We have the highest unemployment in my area of NC, and there are a bunch of agencies looking for support staff. Not one agent/agency I have spoken with in the last couple months have required anyone to be bilingual. 10 yrs ago maybe but not so much now. Heck most of the non English speaking people have left NC because with no ss card, no license.

Without going back and reading, I have to ask, do you any insurance experience AT ALL?

ETA I just read your profile. Seriously with only working in a call center, which btw SUCKS, I think you have no idea what working in a real agency is like. Get your feet wet in an agency before blowing what life saving you have (you really don't seem to have much????).