Becoming an Independent Insurance Agent

SportsNut · 01-25-2009, 04:23 PM

Originally Posted by CHUMPS FROM OXFORD

1.0. The 2.0 version is not free, so I did not buy it. The only major difference is that version 2.0 deletes expletives from your posts.

Aw, thanks for expouding upon that Chumps...

Knowing a bit of your high moral character you may not need version 2.0 since profane language wouldn't be within your consideration. The only four letter "F word" that I use myself is *FREE*...

CHUMPS FROM OXFORD · 01-25-2009, 06:58 PM

"The only four letter "F word" that I use myself is *FREE*..."

Me too. Of course, my major flaw is the fury I show when people say the "F" word.

motoxxx · 01-26-2009, 02:29 AM

There is some excellent advice in this thread.

I got to where I was dead broke, frustrated with no sales after almost 2 months when I was a new agent. I had no sales experience at all so I was on a steep learning curve. I finally decided one day that I was going to cold call until I set an appointment. That took me about 2 hours to get. But it was a confidence booster.

Just like Somarco said, people can sense your desperation and if you are desperate, they will not trust you. Concentrate on staying calm, and confident and have 100% conviction in your presentation, products, and your self. Even if you don't have the confidence, FAKE IT! The phrase "Fake it Until You Make It" is very true.. People buy from people they like and who they trust. Once I learned this, my close ratio went to about 80%.

Also something that really helped me since I had no sales experience at all was this: The book "How to Win Friends and Influence People" by Dale Carnegie was a huge eye opener for me. It was recommended to me by a fellow agent that started out the exact same way that I did and it really made me understand people, how they work, what they need, and what their biggest concerns are, which is themselves and their problems. If you have not read it, I would go and get it. It is one of the most important books I have ever read.

Berecca6863 · 03-03-2009, 03:38 PM

This is my first post so please bear with me.

I have been working with a premium finance/life settlement company for the past couple of years as a case manager. They just had me get my license and now I have been told there is not much I can do with it within the company. I really would like to go out and sell and I have a list of pretty high net worth people that I would like to try to start selling to but that is about as far as I have gotten. I do not know where to start in terms of what I should sell and how. I know more about Life Insurance than I do health being that I have been working with this company for a while but am a quick learner.

Any help would be greatly appreciated!

EDM · 03-04-2009, 02:40 AM

Originally Posted by healthagent

Coming in broke and getting off the ground has been done over and over again - however you need the right set of traits. I say traits because it cannot be taught, read in a book or picked up reading motivational quotes.

You come in broke and either completely dig in cold calling or basically you're back on Monster.com

If you're broke and 2 hours of cold-calling ain't getting it then the next day it's 4 hours. If 4 hours aren't producing the results then it's 6 hours.

There are a lot of "broke" agent coming into the field -which is fine. Some will call me with great concern that "this" or "that" activity is not working for them.

98% of the time when I review their past week either next to no cold calling was done or a few hours. Typically this is what I get:

"But John, I tried telemarketing for 2 hours and didn't get much." My response is "call me back after you've done 30 hours."

A lot of time agents simply have to be bottom-lined. If you are lacking in funds, come Monday you are going to either:

1) Cold call (BtoB or telemarketing) at least 4 hours a day
2) Get cash - family, friends, whatever
3) Get out of the business as quickly as you can or you're destroy yourself financially

There seems to be some psychological problems that I have a tough time relating to. I spoke with an agent a few months back who had eviction papers filed from him landlord - court date was I believe 5 days away.

He didn't want to go BtoB - didn't want to telemarket and obviously didn't have money. I'm at a loss when I'm asked to give advice in those situations. If I was facing eviction I'd be out BtoB 10 hours a day. I'd bring my laptop and signing people up same day.

I guess to sum it up - you need to find out if you even have what it takes mentally. Here's a test if you're dead broke. If by close of business tomorrow you have not performed at least 4 hours of a cold-calling activity, quit on Tuesday - this isn't for you. You are not designed to "boot trap" it - you need to ride a desk somewhere.

When cold calling small businesses, are you calling them to sell them group benefits or single health plans?

motoxxx · 03-04-2009, 02:10 PM

Originally Posted by Markingriffin

Very good Post!

Thanks! I use what I learned in that book every single day. Even though it was written back in the 1930s and a lot has changed since then, the one thing that hasn't changed is people and how they work. Mr. Carnegie was far beyond his time in my opinion. Everything in that book holds true today.

stuy119 · 04-20-2009, 04:42 PM

Originally Posted by motoxxx

Thanks! I use what I learned in that book every single day. Even though it was written back in the 1930s and a lot has changed since then, the one thing that hasn't changed is people and how they work. Mr. Carnegie was far beyond his time in my opinion. Everything in that book holds true today.

Agreed. After I re-read the book, I always seem to do something right the very next day with a prospect that benefits me financially.

jmarkk1 · 05-25-2009, 01:27 PM

John,
Thanks for this information. I was wondering if you might be able to help me. I'm currently weighing in on possibly working with Futurity First and American Insurance Organization. I have 3 yrs. experience, and at this point, I'm only available to work part-time. (20-25hrs./wk.)
I've also looked at Health Choice One, but I haven't gotten any details. (I'd like to hear your advice on this for me if you think it might fit) Below are pros and cons with FFIG, which for now seems to be my first choice. If you can steer me in a better direction, let me know.
The areas that I find attractive with Futurity First are the following:
1) Local Support, Training, and marketing
2) Solution based selling that is focused on clients needs first
3) Product portfolio is solid, but they don't include every carrier under the sun, only a select group of top rated companies.
4) Expanding my current sales knowledge beyoned major med and life to include med supp, annuities, and LTC/DI.
5) Focus on career agents:matching 401K, 50/50 split on health insurance, and they pay half of FICA as well as take care of all other taxes for typical w-2 wages.
6) They pay E/O
7) They help pay for leads, etc.

The areas that I'm questioning about the opportunity are:
1)Commissions are extremely low (eventhough they pay 50% for all business on submit except health)
2)I will be captive to their carriers, and there are other good companies to work with.
3)I'm not sure that my part-time status with them will yield the results I want. (they are willing to let me work with them at 20-25 hrs./wk.; but I'm a full-time associate minister; there may be weeks where I can't put that much time in, and when you take into consideration going from a 20% to 22% commission rate on health to 14% to 17% with them, I'm not sure that this is the smartest decision; plus my life commissions will drop by about 40%)

Thanks

Tinjaxfla · 06-15-2009, 02:08 PM

Thanks a million for sharing. I am not thinking about selling health but, the information has helped clear up some basic things for me.

sitharmy · 06-18-2009, 02:36 PM

I might be mistaken (please don't hit to hard if I am), but goleads doesn't seem to be $9.95 a month. From what I can see it's now, $150 for the first month & $80 a month after. Am I correct & is it still worth it at these prices?

A.I.P.G · 07-01-2009, 09:35 AM

Great Info- thanks very informative
- - - - - - - - - - - - - - - - - -

Great Info- thanks very informative

cahallinsurance · 07-05-2009, 10:07 AM

Hi Everyone,
I have been reading this thread for sometime, and it has been a huge help to me. I am currently in the process of starting my own independent insurance agency. I am currently a Graduate Student working on my M.B.A. and also working for State Farm Insurance. I have a close family friend that sells Grange insurance, and seems to be very successful. I don't want to find myself tied down to one given company and feel that independent is best for me. I had started in the State Farm process, but I don't feel that it's really for me. I have looked into insurancenoodle and also superior access. I was wondering what other types of companies to look into. I want to do mostly P&C, but also eventually get into L&H. My fiance and me are both licensed in P&C and I am planning on getting L&H & Series 6. If anyone has any suggestions please let me know. I will let you know that my company is going to be in a smaller rural area along the ohio river.

CHUMPS FROM OXFORD · 07-05-2009, 10:55 AM

"I am currently in the process of starting my own independent insurance agency. I am currently a Graduate Student"

It will be tough, but you can do it. The lack of experience hurts a bit. If you could build up some experience (and savings!) for a few years, your chances of long-term success might be better.

Regardless...if you work hard, good things can happen.

GreenSky · 07-05-2009, 11:34 AM

Originally Posted by CHUMPS FROM OXFORD

Regardless...if you work hard, good things can happen.

Damn it. There's always a catch.

Rick

CHUMPS FROM OXFORD · 07-05-2009, 12:27 PM

Well...If you don't work hard...good things can still happen!

maleman2045 · 07-15-2009, 05:03 PM

Great post.
Some things I've already known and great to see them being reinforced/validated by others without asking for it.
Some things I've learned and am very excited to get them into practice.
I am using a DBA from my LLC as, for me, it completes the level of professionalism I wish to convey. I also think that providing information with a corporate name adds a little more credibility. So I hope..

I also think that this post should be included in the intro email as good suggested reading for all. Even the most seasoned professional should look for validation of his ideas/processes or see if something new is creeping on the horizon.

Looking forward to posting elsewhere on this forum and the best to all.

Agent_007 · 07-16-2009, 01:14 PM

Good info here!

tenred · 07-17-2009, 02:30 AM

Originally Posted by healthagent

IS THERE ANYWAY WE CAN TIE THIS ALL TOGETHER?

Step 1: Research the commissions and plans available in your state. Make sure you can actually make a living in your state.

Step 2: Get E&O coverage then get appointed with all the available carriers in your state.

Step 3: Get your marketing plan together; telemarketing? Internet leads? Walk and talk (B to B)?

Step 4: Start doing intense studying on the plans.

OK, I HAVE MY FIRST LEAD - NOW WHAT?

1) Introduce yourself an an independent agent and explain that your job is to help people who are currently having a problem with their health insurance. Either the rates are do high, they don't like their current plan or they don't have coverage.

2) Find the problem. If the client doesn't have a problem you don't have a deal - [COLOR=blue]"Yeah...I'm pretty happy with what I have now and the rate's fine but if you want to send some quotes that's ok."[/COLOR] There's no deal there. Here's a deal: [COLOR=blue]"Our rate just went up to $750 a month and we really need to do something."[/COLOR] Or [COLOR=blue]"I just had to drop coverage a little while ago and I really need to get something going again."[/COLOR] Basically, your client needs to complain about something and be conversational. Dump off the people with no interest and work with the rest.

3) Qualify. The coverage you recommend is largely going to depend on their health history. You want to waste 45 minutes going over plans and they're 5.6 340 pounds? Diabetic? Explain to your client that the rates and coverage you recommend depend on their health. If there's any pre-existing conditions contact the pre-screen departments of your insurance companies so you can compare the underwriting decisions.

4) If you're a face to face person, they qualify and you can help them go ahead and set an appointment. Let them know a price range [COLOR=blue]"From $320 to $550 I can offer you several plans. I can meet with you, go over all of your options and answer all your questions." [/COLOR][COLOR=black]If you're going to do this over the phone (not recommended for brand new agents) then ask for a specific time to call back when they'll have 15 minutes to go over all their options. [/COLOR]

5) When you're going over the plans don't be a salesman. Be an advisor. Simply explain their options and always recommend the best coverage possible that fits into their budget. HSAs are almost always the correct plan to recommend they best protection. You will be doing a great disservice to your clients by not studying and becoming an expert on HSAs.

Important note: Health insurance is supposed to be there to protect people's assets in the case of an unforseen medical event. Anyone can handle small bills, not many can handle large ones. Avoid selling plans that place limits on prescriptions and outpatient procedures. Under no circumstances are agents supposed to pull clients off major medical plans and offer limited plans just to save money without explaining the potential liablity.

On a personal note, one of my best friends has been diagnosed with stage 4 non-hodgkins lymphoma. Forget all all the chemo - he's on shots to boost his immune system. Those shots are $3,000 a week and it's considered outpatient drugs. He's also 40 years old. You never know what will happen and health insurance should be designed to be there.

And for all those "My client's healthy so why does he need all that protection" agents just ask youself if it would be absurb for people to sign up for this:

Case 1: Your house burns down and you owe $200,000. Thank God you have homeowners. But the agent comes and hands you a check for $2,500 and says "I'm sorry but in your contract it states that for electrical fires you only get $2,500 maximum.

Case 2: You get into a horrible car accident on the way home from work. You car insurance agents hands you a check for $1,000 and says "in your contract it states that if an accident occurs during rush hour you only get $1,000 max."

Does this sound crazy? Ok...

Case 3: You have an bad accident working around your house. The total surgical bill is $80,000 and now you're on $3,000 a month of medication. But your insurance agent calls and say "I'm sorry, but you've exceeded your benefits."

So....is it more likely for your house to burn down or have a medical issue?

hey new guys please read the important note by this poster, even BCBS is pusing their simple blue and their simple blue plus plans to be more competive, i have to kill other plans better and my job is much harder but i do sleep with a clear conscious, and i will print a copy of this to have my potential clients read at every appt.

claymoradi · 07-28-2009, 07:08 PM

We have a shopping center in the suburb of Houston, Texas (in League City). We are interested to open an Insurance agency in the corner store (2000 sqft). We like to partner with an existing agent to operate in this location.

For more info, please contact Clay Moradi at 281 536 2734; email: claymoradi@gmail.com.

Thank you

hlakhani · 09-01-2009, 01:36 AM

I would say that this is prob the most valuable info i could have found while simply doing a internet search, thanks John. I am someone who is completely new and wanting to start a career in insurance - i hope i am not in the wrong section as i am looking for information that is very fundamental to everyone here.

Basically, I am looking to launch a career in insurance with an emphasis on P & C - and health as a secondary product. So far i have considered things like an all state agency or a state farm ( i know) But i dont want to be confined to these companies and would rather have multiple carriers inlcluding the above -so looking to be an independent insurance broker with the above products. But i have no idea where to start or get information on accomplishing this task which is my main question.

Licensing, back ground, finance, skill sets are all not a problem - can you give me any advice John?

Again - i did notice that this is primarily a health insurance thread but i dont find helpful credible sources often......any help would be appreciated