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Hello everyone,
I have been "lurking" here for weeks and have finally read as much as I can in regards to my questions. I have also spent time on other sites reviewing/researching the information I am about to pose to you in my questions.
I am currently an employed IT Project manager and have several years of experience in this field. I have a diverse background in my career, everything from Climbing telephone poles to managing federal programs that exceed 65million dollars.
I want to get into the Insurance business and have been researching this for over a year now, both online as well as talking with agents and 1 ex agent. I really do not want to get into the debate of why or why not with my choice to make the leap into this field. I would prefer some advice and/or recommendations based on your experience as a professional in this field.
I have made my decision to go down the path of American Family Insurances AIT program. Which after several calls and emails with their recruiting folks has led me to believe that I will receive 6 weeks of training and 1 week of training at corporate in WI. I will receive a 3800.00 salary and receive commission on my initials, but renewals go to AMFAM to pay back my "loan". I get a stipen for an office of 2000 and 1500 for staffing. I would be in AIT status for up to 4 years and after that would have to pay back 1/2 at 0% at 300.00 a month.
I am curious to know if anyone else is currently or recently gone through this process? Most of the information on this site is several years old that I have found, actually on most sites. There does not seem to be a whole lot out there that i can find.
I know I have read alot about the failure rates of individuals in this industry, however i do not tend to find out much for the "why" did they fail?
I feel/believe that this is a business that if the hard work is put in and you're a good communicator and have the ability to network in your community or peers that you could be successful.
I feel like I should expect to struggle the first couple of years but if i stay committed that this should be a good career field with a good long term upside. I do not have any delusions of grandeur here where i think i am going to be the next bill gates. But i do expect to "NET" close to a 6 figure salary after 4 or 5 years consistently (meaning $80,000 - $100,000.01 a year). Am I crazy?
I know so much depends on the person, but I am hoping someone out there has some more recent AMFAM experience than 2008 or 2009 which is all i seem to find.
Thanks in advance everyone, i have found a lot of good advice here.
Hello Hook,
Can you elaborate more on your starting base salary? Is it $3,800 monthly + first year commissions for the first four years? But renewal commissions go to pay for the "loan." Is the loan the stipend you get for the office and staff or does it also include the salary they are giving you? Sounds like a good deal because you would have a steady income while you build your book of business. If you don't make it or decide to move on do you have to pay the loan back?
Hey I just quit Amfam as an Agent. I've been in your shoes before. I been to AZ for traning also. Let me say this first 3800 seems so small for a Agent. I was getting 4000! I think you need to renegotiated your contact now with your ASM! Don't go signing a lease for your office neither. You'll be stuck if you leave Amfam with that lease. Take my advise and tell your ASM that you'll need a book of business to run right after you finish traning. Don't go as a scratch agent trying to find new customers on your own. Amfam rates are high and in this industry it's about price! Amfam will try to sell you on the fact that it's about value and building relationship. Although its half true but if I can't beat their current rate and I'm 300 more for 6 months, customers are not stupid, their not going to switch insurance. Amfam had a rate increase last April and I heard there's another one.
If I was you I would look into State Farm or being a independant agent. The only way you'll survive at becoming an Agent is like I said having a book of busines when you come out of traning. Taking over an existing book. If not run for the high hills and don't look back. Your ASM is low ball that crap out of your salary. 3800 is what AIT's were getting in my area.
If you need more info. on Amfam I'll be happy to call you and give you more. Let me know.
However, do you think they would place you in a book? Is that something AmFam does? It seems to me normally when an agent doesn't make it his/her book is dissolved and the company handles directly (to avoid paying commissions) or more experienced agents get the leftover book.
To anwer your question, Yes they will you just need to ask your ASM if there's any opportunity in your District, if not, asked another ASM's in your State Office. Ask around! If your book is dissolved your ASM takes its and gives it to other agents in your District. However, if there's an Agent in your area that's leaving for some reason, or is retiring, that's the best opportunity to take over. Like I said go to your State Office and talk with other ASM's (not just the ASM that your talking too now) and ask them also about getting a book of business.
It's a tough situation because most people do not have the assets to start their own independent insurance agencies. That is my first choice but if a captive is willing to help you with office expenses and salary the first few years that is hard to pass up.
I was thinking that same thing when I got into the business. Trust me I know what your going through. Yes, they have these incentives like salary, paying half of office expenses, but your have to consider that EVEN though that sounds great, you still have to make your monthly and quarterly GOALS! Like I said Amfam doesn't have the best rates it's hard to compete. If you can't make your goals they cut you off like nothing ever happen.
Also, what area of the country are you in?
Las Vegas.
I'll tell you this, there is a revolving door in Amfam that's taking in lots of AIT's and Agents and leaving right back out. It's crazy! I went to training with 23 students in AZ and only 3 are remaining. Like I said you need to explore with captive agent like State Farm if not become a independant agent. Don't be just look at their incentives cause that's only there to reel you in.
If you need more info. I you can pm me your number and I'll be happy to discuss more.
Hey I just quit Amfam as an Agent. I've been in your shoes before. I been to AZ for traning also. Let me say this first 3800 seems so small for a Agent. I was getting 4000! I think you need to renegotiated your contact now with your ASM! Don't go signing a lease for your office neither. You'll be stuck if you leave Amfam with that lease. Take my advise and tell your ASM that you'll need a book of business to run right after you finish traning. Don't go as a scratch agent trying to find new customers on your own. Amfam rates are high and in this industry it's about price! Amfam will try to sell you on the fact that it's about value and building relationship. Although its half true but if I can't beat their current rate and I'm 300 more for 6 months, customers are not stupid, their not going to switch insurance. Amfam had a rate increase last April and I heard there's another one.
If I was you I would look into State Farm or being a independant agent. The only way you'll survive at becoming an Agent is like I said having a book of busines when you come out of traning. Taking over an existing book. If not run for the high hills and don't look back. Your ASM is low ball that crap out of your salary. 3800 is what AIT's were getting in my area.
If you need more info. on Amfam I'll be happy to call you and give you more. Let me know.
I appreciate the information. I was going to PM you but it looks like I don't have enough posts yet. By the way I just moved to St. Louis from Las Vegas. I am from the St. Louis area but moved to Vegas for 5 years just moving back last Spring. Some of my coworkers in Vegas came from AmFam and had similar situations. I was just wondering if AmFam is more consistent here in the Midwest as the home office is in the Midwest.
Assuming I get far enough along in the process I will ask if there are books open or opening that I can take over. My preference would be to start my own independent agency and I have looked at clusters and also direct appointments (Progressive, Cincinnati, Foremost, and Erie specifically). I just don't have the assets to open an office, I would have to start out of my home. I know from reading the forums a lot of people are successful working out of their homes, but it sounds like P&C agents need to have a physical office location generally. One of the clusters I looked into (Smart Choice) said I would need a physical office space 6 months after contracting with them.
