So the question is "Was I an absolute rube or has this been an opportunity in disguise?"
Hi guys, great forum and I'm trying to read and absorb every last post on this forum as fast as I can. A version of this has probably been asked 1,000's of times so I'll try to add a little bit of value with my own experience, being brand new to insurance and starting as a licensed sales producer at an Allstate agency...
(skip to the next bold text if you're not interested in my own insurance breaking in story)
I had an ex-girlfriend's father who was a 2nd generation insurance agent and successful at commercial insurance suggest to me, "Well if you're good at sales, get into insurance and build something." I jumped, found a position on CareerBuilder for a brand new, from scratch Allstate agency, went on the interview and sold myself into the job. I did mention during the initial hiring process, "I'm interested in learning how to build and manage a book of business, but will do what's necessary for as long as necessary to learn the insurance opportunity."
I was so green behind the ears I couldn't tell you the difference between premium and coverages and it was obvious. However, the agent agreed and has repeatedly mentioned over time "when you start your own agency..."
The Principal was an Allstate agent in another state, moved to Florida and went independent with a cluster, then decided to go back to Allstate after a bad independent experience and then finding some financial backers/partners - he clearly prefers captive. I studied and passed my CSR license class and went to work - there was a base rate of pay equal to minimum wage and "bonuses" of 20-30% of the premium written above the draw amount, but no renewals. I say "bonuses" because Florida law apparently doesn't allow paying straight commission to a CSR. That bonus structure was this Agent's work-around.
My position started, along with about 20 other people, as a licensed sales producer. A year and a half in and it's myself and another guy in the office that are the only ones that have consistently hit our numbers. Of those 18 other people there was an equal mix of CSR's and fully licensed P&C sales people. Most were let go and one of the P&C guys quit.
About seven months in, the Agent gets into a fight with his financial backers, and severs the partnership. At that time he says, "I can't afford to pay you a base salary anymore, the agency doesn't have the cash-flow, the commissions just aren't there." Well, having consistently blown out my sales numbers I (and the other guy) stay put and continue to sell under the same conditions as before - not too much of a financial hit so long as I keep hustling. Now, 6 months after that event I'm starting to see the error of my ways: I'm stuck on a new business treadmill by being straight commission without any stake in renewals.
The real sticky part now comes from the Agent's expectations of service work; I'm in this hazy area of being half-employee and half 1099 sub-contractor - maybe he got this idea from his own arrangement with Allstate? - that is required to do service work like an employee but paid on new business only like a 1099 guy. Meanwhile, the incentive to stay in that situation has been the carrot-on-a-stick of "I'll show you how to own and run your own agency."
From the start I've been pretty aggressive in learning and trying to get my mind around the insurance industry. I have purchased and read almost every book on insurance sales and agency management on Amazon, subscribed to numerous trade mags (Rough Notes, Agent & Broker, etc.), joined some LinkedIn groups and then thankfully found this forum.
(welcome back)
So now I've finally realized it's time to get out from under the shadow. My obvious first step is to get the proper P&C license (2-20 here in FL), which I'm in the process of studying for now. Based on what I've read on this forum, another first good step is get to learn more about what kind of market I'm in (not 100% sure on what that means just yet, still looking)
This position has served me well for the purpose of learning Personal Lines P&C, at least Allstate's appetite for it. I'm getting antsy to figure out how soon I should make a move and jump ship.
My question is, what's best? Having only one experience at one captive agency, there's a whole wide world out there of which I'm unfamiliar and still green. So... advice and thoughts are appreciated!
Do I go out and try to find a producer position with an independent agency and learn the independent side of the insurance business? Stick with P&C or start to look at L&H? Just jump on the first offer to buy an existing Allstate book then flip it after a few years?
So, where to go from here? Any advice, thoughts, websites, threads... anything?
Thanks!
Hi guys, great forum and I'm trying to read and absorb every last post on this forum as fast as I can. A version of this has probably been asked 1,000's of times so I'll try to add a little bit of value with my own experience, being brand new to insurance and starting as a licensed sales producer at an Allstate agency...
(skip to the next bold text if you're not interested in my own insurance breaking in story)
I had an ex-girlfriend's father who was a 2nd generation insurance agent and successful at commercial insurance suggest to me, "Well if you're good at sales, get into insurance and build something." I jumped, found a position on CareerBuilder for a brand new, from scratch Allstate agency, went on the interview and sold myself into the job. I did mention during the initial hiring process, "I'm interested in learning how to build and manage a book of business, but will do what's necessary for as long as necessary to learn the insurance opportunity."
I was so green behind the ears I couldn't tell you the difference between premium and coverages and it was obvious. However, the agent agreed and has repeatedly mentioned over time "when you start your own agency..."
The Principal was an Allstate agent in another state, moved to Florida and went independent with a cluster, then decided to go back to Allstate after a bad independent experience and then finding some financial backers/partners - he clearly prefers captive. I studied and passed my CSR license class and went to work - there was a base rate of pay equal to minimum wage and "bonuses" of 20-30% of the premium written above the draw amount, but no renewals. I say "bonuses" because Florida law apparently doesn't allow paying straight commission to a CSR. That bonus structure was this Agent's work-around.
My position started, along with about 20 other people, as a licensed sales producer. A year and a half in and it's myself and another guy in the office that are the only ones that have consistently hit our numbers. Of those 18 other people there was an equal mix of CSR's and fully licensed P&C sales people. Most were let go and one of the P&C guys quit.
About seven months in, the Agent gets into a fight with his financial backers, and severs the partnership. At that time he says, "I can't afford to pay you a base salary anymore, the agency doesn't have the cash-flow, the commissions just aren't there." Well, having consistently blown out my sales numbers I (and the other guy) stay put and continue to sell under the same conditions as before - not too much of a financial hit so long as I keep hustling. Now, 6 months after that event I'm starting to see the error of my ways: I'm stuck on a new business treadmill by being straight commission without any stake in renewals.
The real sticky part now comes from the Agent's expectations of service work; I'm in this hazy area of being half-employee and half 1099 sub-contractor - maybe he got this idea from his own arrangement with Allstate? - that is required to do service work like an employee but paid on new business only like a 1099 guy. Meanwhile, the incentive to stay in that situation has been the carrot-on-a-stick of "I'll show you how to own and run your own agency."
From the start I've been pretty aggressive in learning and trying to get my mind around the insurance industry. I have purchased and read almost every book on insurance sales and agency management on Amazon, subscribed to numerous trade mags (Rough Notes, Agent & Broker, etc.), joined some LinkedIn groups and then thankfully found this forum.
(welcome back)
So now I've finally realized it's time to get out from under the shadow. My obvious first step is to get the proper P&C license (2-20 here in FL), which I'm in the process of studying for now. Based on what I've read on this forum, another first good step is get to learn more about what kind of market I'm in (not 100% sure on what that means just yet, still looking)
This position has served me well for the purpose of learning Personal Lines P&C, at least Allstate's appetite for it. I'm getting antsy to figure out how soon I should make a move and jump ship.
My question is, what's best? Having only one experience at one captive agency, there's a whole wide world out there of which I'm unfamiliar and still green. So... advice and thoughts are appreciated!
Do I go out and try to find a producer position with an independent agency and learn the independent side of the insurance business? Stick with P&C or start to look at L&H? Just jump on the first offer to buy an existing Allstate book then flip it after a few years?
So, where to go from here? Any advice, thoughts, websites, threads... anything?
Thanks!
