Looking for Greener Pastures

[Krista8184]

I've been selling P&C and Life & Health insurance for 5 years. I started out working for a State Farm agent, moved to AAA, and finally ended up working for a Farmers Insurance agent (which is where I got the majority of my experience). In each of these settings, I was responsible for marketing for new business, writing new business, servicing old and new policies, cross selling, annual reviews of policies with customers, etc. In other words, I did all of the work that the agents advertised in the heartwarming commercials are theoretically responsible for. The downfall was that I was making an hourly wage comparable to what a customer service representative would have been making. Most people on this forum probably understand that CSR's generally act (and before I catch a lot of heat for this remark, BELIEVE ME, I KNOW THIS IS NOT ALWAYS THE CASE )as secretaries and leave the majority of the selling and prospecting to the agent making the commission.
Last year, I began trying to start my own independent insurance agency to see if I could make as much money for myself as I was making for my former employer. Long story short, I worked for a captive agent, which in turn, made me captive too; meaning, I could only sell a life insurance policy from another company to a client (whether the client was in Farmers book of business or otherwise) if the client would not qualify for a Farmers life insurance policy. However, as Farmers didn't offer health insurance in the state I worked in, I was safe there. I have since been appointed with a few companies, but I was working so many hours for the former employer that I had no time to devote to my own business.
Earlier this year I got married, quit my work to wage ratio unequal job, and relocated. I've been entertaining the idea of getting back into the insurance business as an independent agent who works from home. I have noticed that many insurance companies have a start-up fee, require good credit, and insist that I have an E & O policy and/or purchase leads from them. At this time, I'm not interested in selling for these types of companies. I hold a residence license in P&C and Life/Health in OK and a non-resident license in AR. If you are aware of any companies that sound like a good fit for me, please pass along the contact info. Any and all responses will be greatly appreciated!

 

[Mark]

Green Pastures usually means more ****.

 

[padthaiforlunch]

Green Pastures usually means more ****.

Especially if you bring your own **** with you.

 

[RenegadeAgent]

I think like any other business you need to have a plan before you get started. Just to play the devils advocate here...how do you plan on marketing yourself if you do get an appointment? Do you have savings set aside for your marketing budget? Do you know how many policies you will have to sell the first few years in order to be profitable?

Starting your own agency may seem like a great idea because you get all of the commission, but once you own an agency you see that the monthly commission check certainly does not go home with you. It goes to marketing, E & O insurance, workers comp, unemployment insurance, etc.

It may sound like I'm saying not to start your own agency, but I'm not. I just think a person needs to go in with eyes wide open.

For what it's worth.

 

[Krista8184]

I think like any other business you need to have a plan before you get started. Just to play the devils advocate here...how do you plan on marketing yourself if you do get an appointment? Do you have savings set aside for your marketing budget? Do you know how many policies you will have to sell the first few years in order to be profitable?

Starting your own agency may seem like a great idea because you get all of the commission, but once you own an agency you see that the monthly commission check certainly does not go home with you. It goes to marketing, E & O insurance, workers comp, unemployment insurance, etc.

It may sound like I'm saying not to start your own agency, but I'm not. I just think a person needs to go in with eyes wide open.

For what it's worth.

Marketing has always been something that I enjoy doing. I know that buying leads can get expensive; and although, I have enough to live on, I don't necessarily have a lot left over for marketing. Of course, I also live in a rural town where the majority of people are self-employed and word of mouth goes a long way. Everyone is related to everyone else. Think Mayberry, USA. I've made some flyers to hang in our local stores, post offices, flowershops, etc., and plan on going door to door. I probably wouldn't recommend these methods to people in a metro area. But this area isn't very fast paced and the fact that everyone knows what everyone else is doing keeps you safe.

I have never liked the idea of being stuffed off in an office somewhere and hiring people to 'handle' my customers. I guess I've always kind of lived and died by the saying 'if you want something done right, you have to do it yourself'. So I can pretty much strike off unemployment insurance and workers comp insurance as expenses; however; marketing and E&O expenses are still going to be applicable to me. I plan on starting out writing for companies who don't require an E&O policy to get appointed. I've struggled with doing this for the obvious reason that it's scary. Then I look at the flip side. I have NO assets. I don't own my home or even my car for that matter. Sue me? For what?! Now don't get me wrong. Although I know the road to Hell is paved with good intentions...I really do have good intentions to those I service. I didn't try to sell insurance policies to people who had no need for the policies we offered when I worked for someone else just to make an extra dollar. And even though $ is necessary to live, integrity is equally necessary to live and stay in business. I'm fully aware that people make 'honest mistakes' everyday and E&O is not designed for crooks. It's for those, 'oops-uh-oh-my-bad' moments. So I'm gonna throw up a couple of Hail Marys and hope that the first few policies I sell have all the i's dotted and t's crossed. Hopefully, those first few issued policies will help me earn enough money to purchase a good E&O policy.

I appreciate all of the words of advice. If you see any holes in my strategy or can think of a better avenue for me to try, please send me some ideas. I'm always open to suggestion!