Insurance Agent Forum

[GeorgiaAgent]

I have been lucky enough to find an angel investor who wants to invest in my start up independent agency; along with the capital he has a lot of really good connections in our city as well. With the money on the table, he would like me to propose several repayment options; I have considered multiple ideas using debt, equity, or a combination of both, but this is not an easy task.

Does anyone have any experience with this? I want the repayment options to be fair for both of us and the business.

I cannot respond to private messages because I do not have enough post...so if you have any advice please respond on this thread.

Thanks in advance.

[fastrack1]

Originally Posted by GeorgiaAgent

I have been lucky enough to find an angel investor who wants to invest in my start up independent agency; along with the capital he has a lot of really good connections in our city as well. With the money on the table, he would like me to propose several repayment options; I have considered multiple ideas using debt, equity, or a combination of both, but this is not an easy task.

Does anyone have any experience with this? I want the repayment options to be fair for both of us and the business.

I cannot respond to private messages because I do not have enough post...so if you have any advice please respond on this thread.

Thanks in advance.

What does he want? Just a decent return on his money or a piece of your success? If possible, just try to give him a rate of return on his money that is very good. That way there is a limit of his profit.

[xrac]

Originally Posted by GeorgiaAgent

I have been lucky enough to find an angel investor who wants to invest in my start up independent agency; along with the capital he has a lot of really good connections in our city as well. With the money on the table, he would like me to propose several repayment options; I have considered multiple ideas using debt, equity, or a combination of both, but this is not an easy task.

Does anyone have any experience with this? I want the repayment options to be fair for both of us and the business.

I cannot respond to private messages because I do not have enough post...so if you have any advice please respond on this thread.

Thanks in advance.

Typically an investor will want a 15-20% return on their money. Truthfully most of us look for partners or investors because we want reassurance and are afraid of risk. There is probably more risk in having outside investors because of their demands and expectations. I spent nearly 1-1/2 years looking for investors for a start up business. I finally did it with no investors and bootstrapped it up and was glad that I did. Most people don't need nearly as much money as they think they need if they are smart with what they do. The actual beauty of insurance is it doesn't take a lot of capital.

[djs]

In general, I haven't met to many angels that work with limited profit potentials.

Not near enough information here to even begin.... Only you will know what is right, but don't worry, if it's wrong, you'll know that to.

- Why do you need an angel investor? This sounds like wanting a large office, receptionists, producers, etc. That's okay if that's the way you are going.
- What are you trying to accomplish with an angel investor that you can't accomplish on your own? I'm assuming this is not a life and health agency, but a multi-line P&C agency?

The hard part with angels is they are motivated in strange ways, but all of them are looking for a fairly significant upside. They always want a bigger slice than what you would pay if you got a small business loan, which is what I would recommend checking out first.

The good news is, even talking with an angel makes you have a business plan, which is crucial to long term success.

[joshril]

Most angels I have seen what a "piece of the action"... or a ridiculous rate of return. If this guy brings something to the table in the way of connections, do an equity deal. This can be lucrative for both of you... Of course as mentioned above, if you are incredibly successful it could cost you more than a debt investment...

[ALG]

Have you proven yourself has a successful Insurance agent. If not save both of you a lot of grief. Prove your self and system then look to expand with help of others capital.

[williamsassoins]

Originally Posted by joshril

Most angels I have seen what a "piece of the action"... or a ridiculous rate of return. If this guy brings something to the table in the way of connections, do an equity deal. This can be lucrative for both of you... Of course as mentioned above, if you are incredibly successful it could cost you more than a debt investment...

Couldn't agree more.

[insuranceexec]

Originally Posted by GeorgiaAgent

I have been lucky enough to find an angel investor who wants to invest in my start up independent agency; along with the capital he has a lot of really good connections in our city as well. With the money on the table, he would like me to propose several repayment options; I have considered multiple ideas using debt, equity, or a combination of both, but this is not an easy task.

Does anyone have any experience with this? I want the repayment options to be fair for both of us and the business.

I cannot respond to private messages because I do not have enough post...so if you have any advice please respond on this thread.



Thanks in advance.

What kind of help are you looking for besides operating and start-up capital? The reason that I ask is that my firm, which is an IMO, specializes in getting new agents set up in this business. And yes with a good business model would even consider helping establish an office. I do already have several offices set up across the southeast, and about 150 agents, so in the marketing world I am still somewhat small, but I am able to give people personal attention when needed. I have my key people in place over all lines of Insurance, and I mainly focus on the Securities side of things. The biggest piece of advice I would give a new agent in this business, Is do not over educate yourself to the point of doing nothing. I see more people that would be good in this business, but they never take the first step.

Another point to consider is that all marketing companies keep about 30% of all business that is written though them. So with that being said I have the only marketing company that pays out above street commissions to every agent, meaning that you get to keep more of your commission, thus meaning you have extra money to get an office started. Depending on the level of support you need means that I can operate on next to nothing if you do not have to call me or my office to follow up on all of your business, but ultimately the choice is yours. Write this blogback if you would like some more information. Happy Hunting and Good Luck!

[joshril]

Originally Posted by insuranceexec

What kind of help are you looking for besides operating and start-up capital? The reason that I ask is that my firm, which is an IMO, specializes in getting new agents set up in this business. And yes with a good business model would even consider helping establish an office. I do already have several offices set up across the southeast, and about 150 agents, so in the marketing world I am still somewhat small, but I am able to give people personal attention when needed. I have my key people in place over all lines of Insurance, and I mainly focus on the Securities side of things. The biggest piece of advice I would give a new agent in this business, Is do not over educate yourself to the point of doing nothing. I see more people that would be good in this business, but they never take the first step.

Another point to consider is that all marketing companies keep about 30% of all business that is written though them. So with that being said I have the only marketing company that pays out above street commissions to every agent, meaning that you get to keep more of your commission, thus meaning you have extra money to get an office started. Depending on the level of support you need means that I can operate on next to nothing if you do not have to call me or my office to follow up on all of your business, but ultimately the choice is yours. Write this blogback if you would like some more information. Happy Hunting and Good Luck!

I'll bite... What companies do you work with? What lines of business? What do you consider higher than street?

2 posts and already advertising...

[healthagent]

Originally Posted by insuranceexec

What kind of help are you looking for besides operating and start-up capital? The reason that I ask is that my firm, which is an IMO, specializes in getting new agents set up in this business. And yes with a good business model would even consider helping establish an office. I do already have several offices set up across the southeast, and about 150 agents, so in the marketing world I am still somewhat small, but I am able to give people personal attention when needed. I have my key people in place over all lines of Insurance, and I mainly focus on the Securities side of things. The biggest piece of advice I would give a new agent in this business, Is do not over educate yourself to the point of doing nothing. I see more people that would be good in this business, but they never take the first step.

Another point to consider is that all marketing companies keep about 30% of all business that is written though them. So with that being said I have the only marketing company that pays out above street commissions to every agent, meaning that you get to keep more of your commission, thus meaning you have extra money to get an office started. Depending on the level of support you need means that I can operate on next to nothing if you do not have to call me or my office to follow up on all of your business, but ultimately the choice is yours. Write this blogback if you would like some more information. Happy Hunting and Good Luck!

This is your 3rd post and second pitch on this board - which is fine however can we all know a little bit more about you and your agency?

Why don't we start with your name and agency's name and work from there

[insuranceexec]

Originally Posted by joshril

I'll bite... What companies do you work with? What lines of business? What do you consider higher than street?

2 posts and already advertising...

Your Quick, and I appreciate your enthusiasm, I have also tried to give some good, helpful information to the person asking............ I work with all of the major carriers on the life and health side i.e. Allianz, Aviva, Banner, NYL, Met, Lincoln, the hartford, mutual of omaha. I personally stay away from any company that is not rated at least A or better. On the P&C side we deal with almost all sub companies, those dealing with sub-prime. The preferred carriers we use are: SafeCo, Natiowide, and Prud to name a couple. I do not deal with the comp on the P&C side but can get those numbers if that was what you were inquiring about.

On the Life and Health side I will give you 2 examples one for life and one for annuities.

Allianz Master Dex 5 the street comp is @ 9% some companies pay 10%, and providing that I do not have to give alot of suppost I can start you at 11.25% and get you to 12% with proven production.

On the life side you and I would have to agree that Banner Life is a good company paying roughly 105% top street. I can start an agent @ 118% and they can cap out @ 128% again with proven production. I hope this information was helpful and would like the oppurtunity to possibly earn your business in the future. Happy Hunting and good luck

[healthagent]

Any odds on getting the name of your IMO

[insuranceexec]

Originally Posted by healthagent

This is your 3rd post and second pitch on this board - which is fine however can we all know a little bit more about you and your agency?

Why don't we start with your name and agency's name and work from there

My company name is Momentum Advisors Insurance Group. I got started in the insurance business about 10 years ago, and I started with a bad captive company. I quickly climbed to the top of that company and thought I was invincible... Sound Familiar............

So I emancipated myself about 4 years ago and decided to give it a go on my own. I did farily well and was a top producer for Allianz and Lincoln Financial. I then got to meet some very intresting people who own an IMO in Illinois, and to say the least I asked them If I could borrow some of their ideas and their business model. They agreed and I found a way to operate a marketing firm on next to nothing, thus being able to give more comps to my agents. I do not advertise I rely on mouth to mouth advertising and just like in my private practice I almost solely rely on referrals.

I just found this forum a couple of days ago so please forgive me If I am forward. I have found the best way to run a business is to be very straight and to not beat around the bush.


I will go ahead and aswer the question now as this seems to be the question that everybody asks. "How is it that you can get such good comps,and I can't." The answer is that about 4 years ago in knowing alot of top producers, and being one myself, decided that I was tired of giving my hard earned commission dollar to somebody who did nothing but sit behind a desk and bothered me all the time about the next "firesale" they were having.

So I contacted alot of the companies direct and asked them how to get the best contract with their respective companies. The answer was almost the same with every company. Bring me a 100 million in annuity production and 10 million in life production. It did not matter the company and it did not matter how many agents were involved to make up that number. The companies were wanting to see that I had access to people and that those people produced. The arrangement I made with the 20 agents I started with was very simple I will operate on 25bps on all annuity business and 5% on all life. That is the same offer I will make to any and all agents. The reason I only have 150 or so agents is that I am currently in my 2nd year of law school and obvioulsy that requires alot of my time. The second thing is that I have only been actively recruiting since the first part of this year.

Do not be alarmed if you contact your personal marketing firm and they try to tell you that what I am saying is impossible. Remember they are sales people and they make a commission off every piece of business that you write. So with that being said, your marketing guy or gal at the very least have an active intrest in trying to keep your business. I hope this answers your question, and I hope that you feel I was thorough. I would be happy to answer any and all of your question and would be more that happy to help any new agent trying to get into this business. Happy Hunting and good luck.
- - - - - - - - - - - - - - - - - -

Originally Posted by djs

In general, I haven't met to many angels that work with limited profit potentials.

Not near enough information here to even begin.... Only you will know what is right, but don't worry, if it's wrong, you'll know that to.

- Why do you need an angel investor? This sounds like wanting a large office, receptionists, producers, etc. That's okay if that's the way you are going.
- What are you trying to accomplish with an angel investor that you can't accomplish on your own? I'm assuming this is not a life and health agency, but a multi-line P&C agency?

The hard part with angels is they are motivated in strange ways, but all of them are looking for a fairly significant upside. They always want a bigger slice than what you would pay if you got a small business loan, which is what I would recommend checking out first.

The good news is, even talking with an angel makes you have a business plan, which is crucial to long term success.

You are absolutely correct.
- - - - - - - - - - - - - - - - - -

Originally Posted by healthagent

Any odds on getting the name of your IMO

Momentum Advisors Insurance Group, and I am located in Jonesboro, Arkansas. thanks for the question....

[Markingriffin]

Originally Posted by insuranceexec

my company name is Momentum Advisors Insurance Group. I got started in the insurance business about 10 years ago, and I started with a bad captive company. I quickly climbed to the top of that company and thought I was invincible... Sound Familiar............

So I emancipated myself about 4 years ago and decided to give it a go on my own. I did farily well and was a top producer for Allianz and Lincoln Financial. I then got to meet some very intresting people who own an IMO in Illinois, and to say the least I asked them If I could borrow some of their ideas and their business model. They agreed and I found a way to operate a marketing firm on next to nothing, thus being able to give more comps to my agents. I do not advertise I rely on mouth to mouth advertising and just like in my private practice I almost solely rely on referrals.

I just found this forum a couple of days ago so please forgive me If I am forward. I have found the best way to run a business is to be very straight and to not beat around the bush.


I will go ahead and aswer the question now as this seems to be the question that everybody asks. "How is it that you can get such good comps,and I can't." The answer is that about 4 years ago in knowing alot of top producers, and being one myself, decided that I was tired of giving my hard earned commission dollar to somebody who did nothing but sit behind a desk and bothered me all the time about the next "firesale" they were having.

So I contacted alot of the companies direct and asked them how to get the best contract with their respective companies. The answer was almost the same with every company. Bring me a 100 million in annuity production and 10 million in life production. It did not matter the company and it did not matter how many agents were involved to make up that number. The companies were wanting to see that I had access to people and that those people produced. The arrangement I made with the 20 agents I started with was very simple I will operate on 25bps on all annuity business and 5% on all life. That is the same offer I will make to any and all agents. The reason I only have 150 or so agents is that I am currently in my 2nd year of law school and obvioulsy that requires alot of my time. The second thing is that I have only been actively recruiting since the first part of this year.

Do not be alarmed if you contact your personal marketing firm and they try to tell you that what I am saying is impossible. Remember they are sales people and they make a commission off every piece of business that you write. So with that being said, your marketing guy or gal at the very least have an active intrest in trying to keep your business. I hope this answers your question, and I hope that you feel I was thorough. I would be happy to answer any and all of your question and would be more that happy to help any new agent trying to get into this business. Happy Hunting and good luck.


Momentum Advisors Insurance Group, and I am located in Jonesboro, Arkansas. thanks for the question....

Did you spell check this before you posted it? You said you are in law school?

I read your other post. You said that no life company offers advancing until you was confronted on this issue. Next you said that you would cut an agents commissions if they asked for advancing.

I don't think you are going to recruit from this forum. Also you need to not spam on your first couple of post and try to bring something postive to this forum.