Scroll down for a discussion on COP Goes FARMERS ! What Say You? within the Getting Started Selling Insurance.
Here is my situation.........been a cop for 20 years, minimum 8 more years to retirement, more likely 12-15 to max out retirement benefits, but frankly ...
Here is my situation.........been a cop for 20 years, minimum 8 more years to retirement, more likely 12-15 to max out retirement benefits, but frankly I am tired of this thankless government work. Have couple friends in insurance, one indy one farmers, both doing VERY well. The Farmers friend steered me to the DM/recrutier and my indy friend supports using farmers to learn the business before striking outon my own. I submitted the app through Farmers and was approved and am taking my state tests next week.
My cop shift will give me 3-4 days a week(12 hour day shifts with 3 days off one week then 4 days off the next) to work the insurance biz PLUS every nite to make calls. QUESTION: If you had my shift, what days off would you prefer to maximize insurance business/prospects?
There is an agent retiring or otherwise leaving my area who will be leaving over 1000 policies behind. The DM tells me[COLOR=Red] if [/COLOR]I make career agent soon enough I [COLOR=Red]MIGHT[/COLOR] be able to get up to 500 of the outgoing agents polices. The DM has been very good about not making unrealistic promises...(I got wise to that sort of thing through my ARMY recruiter when I was kid!!) so as much as I'd LOVE to get 500 of them, I am by no means banking on it.
Because of my line of work I have TON of connections in the community and have an existing "luke warm" list of nearly 400 people to begin contacting.
I plan to use my knowledge of local crime trends to exploit peoples emotions to get appointments, such as going back to neighborhoods where we have taken crime reports and knocking on doors and/or leaving "Community crime alert flyers" at homes and on cars encouraging people to call me for an insurance review/quote/policy app. After all we will have not caught the suspect yet and you certainly would not want to be the next victim of a burglary(homeowners), car vandalism(Auto poliy) or WORSE(Life insruance) now would you? ....Call me to arrange the proper coverage for you and your loved ones................
I have also been a deputy coroner for 20 years as well and am seeking any advice you guys may have as to how to use that experience as an intro to selling life insurance........my current repetoir is probably a bit rough around the edges...... but I can definetely speak to the suddeness and unexpedness of the grim reaper and how often I have seen it leave families financially devastated etc......... SIDE NOTE: I am currently seeking a legal opinion as to whether or not I could legally include "Deputy Coroner" on my insurance business cards, although I am not sure if that would be good or bad to use if I find out that I actually can use it. Your thoughts?
After 20 years in this line of work I CURRENTLY NET about $3800 per month and because my wife (who works for the same county) would have to pick up the family medical coverage I am paying, I would need to increase my pay by $700 for a total of at least $4500 TAKE HOME to be able to leave this job for fulltime insurance work to be able to survive....The idea of having my own office and being my own boss is really appealing to me at this stage of my life, but I obviously will not leave law enforcement until I have a consistent equal or better amount of commision coming in.
How long/how many policies do I need to shoot for to accomplish this? I live in a county of around 70K people, the bulk of which are either aging retirees, parolees or government workers. We have a lot of mobile homes but also a good bunch of middle income to wealthy people as well. My neighboring counties are more populated and have a bit more to offer and I intent to work them as well. There are already a ton of Farmers agents in my area(around 13 I think) but few of them actively prospect and seem to be resting on residuals. I figured this out because in my pre license research and practice intros I have been doing, I've yet to run into an existing Farmers customer, which is where my luke warm list is coming from. My farmers agent explained it like this......If I can sell policies to .5% (thats POINT 5 per cent) of the county population (around 400 people/ 1200 policies) I would be doing VERY well compared to what I am doing now as a cop. Do you agree?
My father in law (who owns a notable PI business in the area) has a huge Main street Office building that is literally in the hub of the "court house square" so to speak that he is willing to give a piece of for little to no rent. All the other Farmers agents in town (3 offices total) are on the outskirts of town in little srip malls).
I have ABSOLUTELY NO ideas of this being a get rich quick scheme. Nor do I have any IDEA about how to be an insruance salesman. I can however talk to any and all kinds of people usually about just about anything, I have exceptional computer and web skills and I have a good understanding of liability and how important insurnace is (years of being in court watching liability law suits unfold). I have also been reading enough of this forum and talking to friends in the business to know this is going to take a couple of years, so I am prepared for the marathon rather than the sprint.
That being said, I would love to hear any advice or strategies you think would help me get going based on my experience as a cop that I could use in the insurance industry? I am pretty excited to get going and see how I do (Although I am fully prepared for failure and keep driving a damn patrol car for thenext 12 years........). I obviously am not confident or brave enough to flat out quit and go in full throttle......call me a sissy cop I guess; but historically when I decide to do something and put ny mind to it I usually do pretty well, so I am hoping this is one those times.
Oh yea the details....California soon to licensed for P&C and life and Farmers reserve agent!
One thing I saw where you might want to be careful. Just as you are getting a legal opinion about using deputy coroner on your cards, be careful not to cross the line with your flyers. I understand California has some strict regulations, and you want to make sure everyone understands that you, the insurance agent, is leaving them and not you, the cop. Getting it wrong could easily invite some winnable lawsuits against you, Farmers, and your police force.
Additionally, make them too harsh or scary, and you're more likely to scare away business than attract it. A competitor might end up the biggest beneficiary of your advertising then.
Also, your friend is right about that many policies bringing in a good income, dependent upon your expenses: rent, employees, marketing, supplies, etc. But, are there at least 200 agents working this market? After all, you have at least 13 other Farmers' agents to compete against, your other bud, Geico, Progressive, etc. What makes you think you'll automatically get that portion of the policy count, the fact that you showed up with a pulse and an office?
I'm not trying to discourage you, I just want you to realize that mere time will not bring you 1200 policies. You're going to have to work for it, show them why you should be their agent and why they should stick with you when their rates get jacked through the roof. And do realize, being captive there will be times when you are uncompetitive on your rates, what are you going to do to keep that customer or bring in a new one?
Finally, why Farmers? I've seen Farmers bashed beyond belief on this forum and elsewhere on the Internet. Is it simply because your friend works for them, or have you had a good experience with Farmers? Maybe there is a reason that your warm market doesn't use Farmers, beyond lazy agents. If you have a positive experience with Farmers as a customer or injured that you can share with potential customers it can go a long way.
Having been self employed for the last six years and having just got into the insurance business in the last six months maybe I can give you some things to think about.
It took me three months to see my first check.
If you are willing to call all of your friends, family and contacts then that will be of help to you. I got started captive and I didn't see too many successful at it. Out of 200 contacts I think I got 7 life applications.
You said you need to make $4500 take home to make it. In my opinion you better have a back up plan for that one. If you can get the 500 cases at farmers that should amount to something. If you want to be a business owner, the one area of concern that you should pay the most attention to is the numbers. Your career could be very short lived if you run out of money in your first three to six months.
Most people on this board will tell you that $30k is a realistic first year number. You said yourself you need $4500 take home. That is approximately $67k gross. Where is the additional $37k coming from that you will need to get through year one?
It will be a hard pill to swallow not getting a regular paycheck. You better be prepared to suck it up and NOT be able to pay your bills on time if you don't have money put away for this. I know this sounds harsh but I've been through it. Luckily I had some money to get me through the transition this time. Last time I did not and it was NOT fun.
Also, DO NOT forget to account for the cost of medical insurance. I am middle aged and a family of three I pay on average $7500 per year.
I have to go to a birthday party now. I'll check back later.
[COLOR=black]Congratulations on starting the new career. From your post I can tell you are sincere and have done your homework well. If you are willing to go door to door, which almost no insurance person has the guts for, I think you have what it takes to pull through. In regards to the deputy coroner idea, I would leave that out personally. Go career ASAP and angle as much as possible for the 500 policies. Those 500 could save you two-three years of ramp up time, or put another way, two-three years of extremely stressful times. If you do angle for the 500 policies, also angle in to get the agents phone number. This is very important because you will be picking up the marketing residuals that agent has accumulated over his/her career. The phone number is almost as important as the 500 policies. In either event, get ready for the long haul. It will take a few years to start drawing any meaningful salary, so you will need to maintain another source of income and/or have a fair amount in savings. Best of luck![/COLOR]
Having been self employed for the last six years and having just got into the insurance business in the last six months maybe I can give you some things to think about.
It took me three months to see my first check.
If you are willing to call all of your friends, family and contacts then that will be of help to you. I got started captive and I didn't see too many successful at it. Out of 200 contacts I think I got 7 life applications.
You said you need to make $4500 take home to make it. In my opinion you better have a back up plan for that one. If you can get the 500 cases at farmers that should amount to something. If you want to be a business owner, the one area of concern that you should pay the most attention to is the numbers. Your career could be very short lived if you run out of money in your first three to six months.
Most people on this board will tell you that $30k is a realistic first year number. You said yourself you need $4500 take home. That is approximately $67k gross. Where is the additional $37k coming from that you will need to get through year one?
It will be a hard pill to swallow not getting a regular paycheck. You better be prepared to suck it up and NOT be able to pay your bills on time if you don't have money put away for this. I know this sounds harsh but I've been through it. Luckily I had some money to get me through the transition this time. Last time I did not and it was NOT fun.
Also, DO NOT forget to account for the cost of medical insurance. I am middle aged and a family of three I pay on average $7500 per year.
I have to go to a birthday party now. I'll check back later.
Maybe I was not clear enough on my OP. I'm not quitting my cop job unless and until and I am successful in insurance. I plant to work the insurance biz on my 4 days off and in the evenings AND using every positive contact I have a cop as a future lead.
My current paycheck averages $3800 if I work no overtime and depending on the pay period could be as low as $3400. My next check however due to having OT should be close to $6K. I am able to pick and choose when I want the OT and when I don't, if I need some extra cash for marketing stuff, I trade an insurance day for a day of OT. That's my plan anyway. Im looking at it like this.......my son and I have dumped a ton of money into racing motocross since he was 7, and never made a cent doing it. He's 16 now, got his own job & car so rarely ride anymore. If I spent the same money I wasted on MX all those years on getting my insurance thing going, that should help offset the operating costs and once I start getting th subsidy that should make it even better.
I have full family medical etc through my cop job and into retirement, but if I were to jump ship sooner then the family medical will continue to get provided via my wifes govt job.
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Originally Posted by VolAgent
Good luck!
One thing I saw where you might want to be careful. Just as you are getting a legal opinion about using deputy coroner on your cards, be careful not to cross the line with your flyers. I understand California has some strict regulations, and you want to make sure everyone understands that you, the insurance agent, is leaving them and not you, the cop. Getting it wrong could easily invite some winnable lawsuits against you, Farmers, and your police force.
You have no idea how right you are and that will be thoroughly vetted prior to any inclusion in my marketing material.
Originally Posted by VolAgent
Additionally, make them too harsh or scary, and you're more likely to scare away business than attract it. A competitor might end up the biggest beneficiary of your advertising then.
Great advice thanks.
Originally Posted by VolAgent
Also, your friend is right about that many policies bringing in a good income, dependent upon your expenses: rent, employees, marketing, supplies, etc. But, are there at least 200 agents working this market? After all, you have at least 13 other Farmers' agents to compete against, your other bud, Geico, Progressive, etc. What makes you think you'll automatically get that portion of the policy count, the fact that you showed up with a pulse and an office?
Anyone reading this board knows that no new insurance agent gets anything automatically. I am going to have to work for it just like all of you did.
Originally Posted by VolAgent
I'm not trying to discourage you, I just want you to realize that mere time will not bring you 1200 policies. You're going to have to work for it, show them why you should be their agent and why they should stick with you when their rates get jacked through the roof. And do realize, being captive there will be times when you are uncompetitive on your rates, what are you going to do to keep that customer or bring in a new one?
By cracky I think you are trying to discourage me! I'm going to keep them by being the best agent I can, frequent contacts, birthday cards, pull their trash can in for them at nite while I'm patrolling their neighborhood if they forget and leave it by the curb.........that sort of stuff.
Originally Posted by VolAgent
Finally, why Farmers? I've seen Farmers bashed beyond belief on this forum and elsewhere on the Internet. Is it simply because your friend works for them, or have you had a good experience with Farmers? Maybe there is a reason that your warm market doesn't use Farmers, beyond lazy agents. If you have a positive experience with Farmers as a customer or injured that you can share with potential customers it can go a long way.
First off I have been an forum junky for years across many different topics AND if you add to that these forums are found the internet that automatically makes everything you see and read on an internet forum 95% BS. So I take the Farmers bashing ( or bashing of any other company ) with a grain of salt until I have direct experience with them.
I have in fact had a great experience with Farmers as a customer for the past two years prior to even considering being an insurance agent at all. My wife hit a deer wrecking the front end of her car; was fixed quickly & without a hitch, (which is a good thing cause I already have a hitch on my truck); and I've used their helppoint roadside assistance on two occasions with great service. So at this point I'm a believer in their products and services yes.
Anyway.......
In have to finish up this post because as I lay here on the living room floor my Playboy playmate girlfriend is rubbing hot oil on my totally ripped abs, then were headed to mansion for mimosa's with Hef.
Last edited by dgarzoli : 09-12-2009 at 12:56 PM.
Reason: Posts merged
By the numbers..... (and these are very general, but will give you some idea of what you are looking at)
$4500 take home is probably about $5500 in actual commissions. Talk to a few agents, there are a few things you need to realize that are spent before you see it, such as a monthly portion of your E&O coverage, and then with captive, you have the traditional other expenses that come out (corporate coop marketing, stationary, whatever). Oh yeah, you have to pay taxes as well, so add another 20% on top for starters. That means you are looking at around $7K a month in commissions to meet your goal. This is very doable, just want to be realistic. Of course, you'll also need to add in some advertising expenses / office expenses, car expenses, phone expenses, but lets stick with the $7K for now.
$7K a month $84K a year = about 800-850 policies on the books. You might think that you are off to a good start with 500 being 'gifted' to you, but you need to make sure these pay full commission, they probably pay 1/2, at least for a while. You'll need to count those as 250 of the 850 you need.
Of course, they won't give you those policies if you are not working full time, so you'll have to hire someone to answer the phones and deal with the service on those policies. This is actually great, because it's enough to pay that help. You will then have someone who is in the office 5 days a week 6 to 8 hours a day, so you can take care of your other business, and the help can deal with the mortgage companies and finance companies and people who need to make payments.
If it was me, having done this for a while, I would look at the possible policy gift as a way to hire the help, then realize it will take a bit of time to get you up to the policy level you need to be at.
Without the policy transfer and not able to hire the help, you'll have to make a decision. P&C doesn't work well for a part time office (notice I didn't say anything about a part time agent).
By the way, in normal California households, $7K a month is 35-40 new house policies every month. Pretty managable, especially if you have office help. It's even less if you write their autos along with the house.
By the numbers..... (and these are very general, but will give you some idea of what you are looking at)
$4500 take home is probably about $5500 in actual commissions. Talk to a few agents, there are a few things you need to realize that are spent before you see it, such as a monthly portion of your E&O coverage, and then with captive, you have the traditional other expenses that come out (corporate coop marketing, stationary, whatever). Oh yeah, you have to pay taxes as well, so add another 20% on top for starters. That means you are looking at around $7K a month in commissions to meet your goal. This is very doable, just want to be realistic. Of course, you'll also need to add in some advertising expenses / office expenses, car expenses, phone expenses, but lets stick with the $7K for now.
$7K a month $84K a year = about 800-850 policies on the books. You might think that you are off to a good start with 500 being 'gifted' to you, but you need to make sure these pay full commission, they probably pay 1/2, at least for a while. You'll need to count those as 250 of the 850 you need.
Of course, they won't give you those policies if you are not working full time, so you'll have to hire someone to answer the phones and deal with the service on those policies. This is actually great, because it's enough to pay that help. You will then have someone who is in the office 5 days a week 6 to 8 hours a day, so you can take care of your other business, and the help can deal with the mortgage companies and finance companies and people who need to make payments.
If it was me, having done this for a while, I would look at the possible policy gift as a way to hire the help, then realize it will take a bit of time to get you up to the policy level you need to be at.
Without the policy transfer and not able to hire the help, you'll have to make a decision. P&C doesn't work well for a part time office (notice I didn't say anything about a part time agent).
By the way, in normal California households, $7K a month is 35-40 new house policies every month. Pretty managable, especially if you have office help. It's even less if you write their autos along with the house.
COP Goes FARMERS ! What Say You?
but I can definetely speak to the suddeness and unexpedness of the grim reaper and how often I have seen it leave families financially devastated etc......... SIDE NOTE: I am currently seeking a legal opinion as to whether or not I could legally include "Deputy Coroner" on my insurance business cards, although I am not sure if that would be good or bad to use if I find out that I actually can use it. Your thoughts?
). I obviously am not confident or brave enough to flat out quit and go in full throttle......call me a sissy cop I guess; but historically when I decide to do something and put ny mind to it I usually do pretty well, so I am hoping this is one those times.
I'm going to keep them by being the best agent I can, frequent contacts, birthday cards, pull their trash can in for them at nite while I'm patrolling their neighborhood if they forget and leave it by the curb.........that sort of stuff.
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