What Would You Do with This Situation?

[wjw0006]

Which of the two options would you select in this situation? Of course these options are um, uh, eh, hypothetical I guess....


Option 1) - you are new to sales but have been in insurance for years and years and can work for a captive company under their two year program which has a good base and provides good support. Already fully licensed and everything is ready to go. It's the best captive option in the area and you would be selling for two years in their regional office. After the program you could potentially open your own agency with them. First year income is guaranteed at $40k and average is $60k. If you meet the sales goals you make an extra $20k on P&C sales and get 65% first year commission on new life sales. First year of the program the captive gives you $15k for marketing and second year they give you $10k for marketing. This is scratch though, no book transfer. If you finish two month program you will get between $60-$95k to open up your own physical captive agency. In addition to what they are providing you have about $15k of liquid capital of your own and virtually no debt. No house payment and rent at about $500 per month. This is in the Baltimore/DC area.

OR

2) Virtually no debt (except $400/month car note) and paying about $500/mo rent. About $15k in cash. Would you rather start up on your own being independent. Again you have years in claims/underwriting but never sales. You are licensed in 10 states and know insurance fairly well. Your natural market is fairly strong and you are decent at networking. You are not appointed with anyone though so taking this option would require you to from the start anyway work out of your home. No E&O insurance as of yet and no appointments.


Both of these options would be primarily selling P&C although some life/accident/health could also be sold. No variable life though as no series 6 at this time. Between these two options, if you were in this situation with the above mentioned skills/knowledge/background, which would you select, option 1 or option 2.

Please note that I have read virtually every thread on this board over the past month or so and this is part of my "research" in selecting the right option to get into the sales world. Thank you for your opinions/feedback.

 

[Larry Tew]

Take option 1 for the experience and support. You are moving into sales, which is substantially different from claims / servicing.

 

[stuy119]

Option 1 for now to get the training, then move to Option 2 after 3 or so years. Just make sure you don't get stuck with some type of a non-compete.

 

[nyc2phi]

Option one sounds like NW but could be wrong.

Option one either way sounds like the right start for you, option 2 will always be a viable option down the road.

 

[dorado]

Agree with option 1. There is low risk and great potential. You can use your natural market and networking abilities as well, and have more chances for success...save money for reserves or for option 2 which will always be there. It is a business and your career so give it your best...good luck!

 

[billberry12]

plus 1 for option 1..no brainer...

 

[wjw0006]

Thank you all....that's what I am leaning towards.

 

[xrac]

Option one unless option 1 is Farmers and it is not a salary but a draw.

 

[wjw0006]

No, not Farmers. It's a real salary.

 

[Guest]

With $15K you can launch your own business, one that you own! The sales, referrals, repeat business, expanded markets, all yours! Remember, when you work for someone else the rules can change (for the worse) and you're at their mercy.

You said a few key things here that give you a great chance at success with option two:

• You have years in claims/underwriting but never sales. (Education can only help)
• You know insurance fairly well.
• You're licensed in ten states. (opening up marketing opportunities)
• Your natural market is fairly strong.
• You are decent at networking. (This is a huge asset)

I would choose option two and if you totally suck and lose all your money, then you can go back to option one and work for someone else.

“A ship is safe in harbor, but that's not what ships are for.”
William Shedd

“Playing safe is probably the most unsafe thing in the world. You cannot stand still. You must go forward.”
Robert Collier

QUOTE=wjw0006;531883]Which of the two options would you [/I]select in this situation? Of course these options are um, uh, eh, hypothetical I guess....


Option 1) - you are new to sales but have been in insurance for years and years and can work for a captive company under their two year program which has a good base and provides good support. Already fully licensed and everything is ready to go. It's the best captive option in the area and you would be selling for two years in their regional office. After the program you could potentially open your own agency with them. First year income is guaranteed at $40k and average is $60k. If you meet the sales goals you make an extra $20k on P&C sales and get 65% first year commission on new life sales. First year of the program the captive gives you $15k for marketing and second year they give you $10k for marketing. This is scratch though, no book transfer. If you finish two month program you will get between $60-$95k to open up your own physical captive agency. In addition to what they are providing you have about $15k of liquid capital of your own and virtually no debt. No house payment and rent at about $500 per month. This is in the Baltimore/DC area.

OR

2) Virtually no debt (except $400/month car note) and paying about $500/mo rent. About $15k in cash. Would you rather start up on your own being independent. Again you have years in claims/underwriting but never sales. You are licensed in 10 states and know insurance fairly well. Your natural market is fairly strong and you are decent at networking. You are not appointed with anyone though so taking this option would require you to from the start anyway work out of your home. No E&O insurance as of yet and no appointments.


Both of these options would be primarily selling P&C although some life/accident/health could also be sold. No variable life though as no series 6 at this time. Between these two options, if you were in this situation with the above mentioned skills/knowledge/background, which would you select, option 1 or option 2.

Please note that I have read virtually every thread on this board over the past month or so and this is part of my "research" in selecting the right option to get into the sales world. Thank you for your opinions/feedback.[/QUOTE][/I]