Sales Vet Weighing Insurance Career

[DT1970]

I have years of experience in industrial sales and, at nearly 50 years old, find myself developing a bad attitude towards authority. That is I want to work for myself and am sick of the corporate koolaid.

My current income is commission based and I average about $100k in gross earnings per year. I am a heavy prospector and while having a set list of customers I constantly spend money on marketing my name as well as prospecting (including cold calling).

My background includes a degree in business and the ability to sell and develop personal relationships. I have no debt other than typical monthly expenditures (heat/electricity/mobile phone/gas/food/etc).

I like the idea of getting into insurance by calling on businesses (industrial is what I know) and have no problem cold calling in person to businesses. I do it all the time.

What would be my best entrance path? Calling an independent agency and offering my services as a 1099 contractor? How exactly does one structure this arrangement so that I own the book of businesses that I generate and what commission split should I shoot for? I'm not too awfully worried about the best split possible as I will need guidance, advice and probably some backoffice help until I develop the acumen necessary.

Finally, I grew up with Mutual of Omaha on Sunday nights and would like to offer that to business owners as I develop relationships with them. Would an independent agency typically allow you to have a line like this on the side and does MoO offer training for people who are non-captive to them?

Lots of questions ... I've used google to search the site and I have not found an answer to these.

Insurance attracts me because I feel that I can build a residual income stream due to my ability to generate trust and relationships with my customers. The business model seems attractive and from my experience with insurance agents most of them don't seem to understand the importance of developing personal relationships with their clientele...which for me means I feel I could do very well.

 

[fearsback]

Insurance is a great industry because of residual income but it is not like rubbing a genies lamp and you make 6 figures. It is many years of struggling before you reach that point. If you have the capital to hold you over for a few years while you start up an office then it can be great for you. It might take you 3-5 years to make what you are making now but residual income is a beautiful thing. This also depends on the type of insurance you are looking to sell and the state you are doing it in. Good luck.

 

[DT1970]

Thank you for your thoughts.

I understand that a career transition would mean a significant step back in income for a few years....probably 75% the first year. But with 15-20 years to go before retirement I'm thinking of the long term. I also would like to have a business that my son could be involved in.

Anyway my biggest question is how to get involved...once I obtain my licenses my choices, as I see it, are:
-become an inside salesperson for a small agency for a year or two to learn but I'm concerned about non compete agreements
-hook up with someone like MoO and start calling on commercial businesses
-work out an arrangement with an independent agency to build a book of business as a 1099 but I'm not sure what would be in it for the agent/owner to let me keep my customers and potentially become a competitor in the future

 

[NewbieNewbie]

With your experience calling on industrial companies and contacts within those companies I would lean towards commercial. I would find an independent agency and work out a split while you learn the business.

 

[AIBINS]

With your experience calling on industrial companies and contacts within those companies I would lean towards commercial. I would find an independent agency and work out a split while you learn the business.

What if you didn't have to give up your salary the first year? Check out: www.fegdream.com Use AIB in the referral code and then it will play the full video on how our retirement specialist are earning over $100K the first year.

 

[pcbinsurance]

AIBINS.....I think I've seen at least 3 straight offers from you in near record time. Have you read the Forum rules?

 

[DT1970]

With your experience calling on industrial companies and contacts within those companies I would lean towards commercial. I would find an independent agency and work out a split while you learn the business.

Thank you.

What is customary in the industry? Should I expect a non compete agreement from the agency and, if so, is it geographic in nature or customer specific?

Also is there a way to structure this that I keep the customers I land when I decide to start my own business or is this a non starter and I should consider this more of a learning period...building up customers for the agency in exchange for learning the business.

Thanks!

 

[Cory]

Yep...PCB nailed it and I just saw one on another thread now that you mention it. There is a proper venue for offers and putting them there could add more legitimacy.