For you P&C experts, I am wondering when you start out with a company what should you expect from them. How does the commision structure work what kind of support you should be getting. Any help would be great thank you.
I have only worked for independent agencies. My experience has not been great in terms of assistance with marketing and leads. Every agency promised me the world in terms of leads and marketing assistance, i.e. money. But once I got in there, they changed their tune. Unfortunately, I think that many agencies are unwilling to change with the times and implement modern strategies for increasing sales. For me, this was very frustrating because I see the Internet as the key to my success and none of my bosses are willing to go with me.
As far as pay structure is concerned, they all seem to be about the same in terms of percentage payout. They have to be to remain competitive.
I would be starting as a captive agent at first, and then eventually do my own thing. I have talked to one company and the answers are not so clear from them. So when working as a captive agent what is a normal split of the new business you bring in. I have no experience in the P&C side of the insurance field, what are some of the questions I should be asking. When leaving a company is it possible to leave with your book of business. Thank you for your time in advance.
Billy T , In reading between the lines I'm assuming that when you say starting as captive you mean an "in house" producer ? Captive to me means working exclusively with a "captive" company such as State Farm, Nationwide who normally hire you as an exclusive agent for their company.
In my experience, no one will let you leave with your book of business without a prearranged purchase price. Even then, the only one I've seen with that type of contract are the clusters like SIAA and Smart Choice.
If you're just getting your feet wet in the P & C side you can expect the agency who provides your markets to take at least 30% of the commission. Our agency takes 30% on new and 50% of renewal commissions for all sub agent producers. We provide the companies, systems and support...the producer sometimes provide an adequate supply of new business to make it worth everyones while. We also require a non-piracy, non compete agreement from all our producers that restrict them from soliciting that book of business for two years.
1man show thank you, that does help. That is the kind of answers I am looking for. I have been getting so many answers that just seem to beat around the bush and not really answer the question I am asking. If you think of things you could have done better in the beginning that may help I would be glad to take any advice. Thanks again for your time. Billy
One piece of simple advice. Find your niche, prospect nonstop, and put in place a good system for reliable,consistent follow-up.
The rest is a piece of cake Too bad it took me twenty years of trial and error to figure it out !
You do realize that if you are looking to generate ALL your life supporting income on the internet it is incredibly difficult? It's as hard or harder than cold calling in my opinion. The question is do you prefer to build your client stream behind a computer waiting for someone to raise their hand or on the phone talking them into it. If you don't like the phone, the answer is obvious. Personally, I do both.
Buying leads is a different ballgame. You'll need $$$ to get started that way.
Thank you for all the advice keep it coming, if you think of more. I am talking to a company know who does not do commision it is all salary and it sounds like not a good one at that. Is that normal I would like to be commision. Thanks again.
One piece of simple advice. Find your niche, prospect nonstop, and put in place a good system for reliable,consistent follow-up.
The rest is a piece of cake Too bad it took me twenty years of trial and error to figure it out !
1man,
I too am just starting out in P& C and plan on joining an independant. I would like to focus on selling business and commercial insurance and plan on cold calling business owners. I know there is a lot to learn about this type of insurance. Do you know of any good trainginin this field? What has been your experiance in cold calling business owners?
Focused on medium and large commercial for a few years and decided it was not my niche. Prospecting was fairly easy, in our state the state workers comp fund gives any agent who signs up access to the anniversary dates and loss experience of all workers comp. policyholders in the state ! We just used that list as our prospecting tool and called prior to renewal with our offer to price shop the coverages. Problem with large commercial is that they are targeted by every agent at renewal and they do require a bit of babysitting. We shifted to small commercial and personal lines and found our comfort zone.
Best piece of advice that was given to me early on was "product knowledge is overrated", "it changes every week" focus on sales and service. As far as training goes, I'd focus on a prospecting, sales,follow up system that is reliable and consistent and you will always be busy writing new business. Let the little nerds in the home office provide the intimate product knowledge and pick their brains when you need it.
I hate agreeing with people, but your post is hard to argue with. Especially the part about picking the brains of the egg heads at the home office.
I'm in the same general area as you, small to mid commercial accounts, and personal lines. I try to keep some big boys in the pipeline though. I don't focus on large accounts, but with a little persistence, I get about 1 large account written a quarter.
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Silence is golden - Duct Tape is Silver
Getting Started In P&C
Too bad it took me twenty years of trial and error to figure it out !
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