Any Advice Starting Scratch Independent Agency?

SueNami

Expert
50
Sigh. So... after putting off going out on my own a couple years, I finally have my finances in order. (Need no salary year one, minimal year two. Can buy a location with rental income vs rent a space. Have first year marketing budget cash. Plus some.)

I applied to Erie- I'm in PA and they have great rates, plus I like the company as a whole. I'm one of those "I have to believe in the product to sell it" kinda gals.

Problem is Erie isn't recruiting in my area now. =(

I was advised to try another region, so I am going back through that process...

But anyone have any other thoughts?

Should I just try to get appointed with other regional carriers (Penn National, Donegal?)... if I do- would it ruin my chance to carry Erie eventually?

Would love other people's insight on this....

Thanks
 
Sigh. So... after putting off going out on my own a couple years, I finally have my finances in order. (Need no salary year one, minimal year two. Can buy a location with rental income vs rent a space. Have first year marketing budget cash. Plus some.)

I applied to Erie- I'm in PA and they have great rates, plus I like the company as a whole. I'm one of those "I have to believe in the product to sell it" kinda gals.

Problem is Erie isn't recruiting in my area now. =(

I was advised to try another region, so I am going back through that process...

But anyone have any other thoughts?

Should I just try to get appointed with other regional carriers (Penn National, Donegal?)... if I do- would it ruin my chance to carry Erie eventually?

Would love other people's insight on this....

Thanks



I don't know anything about P&C, I just had to tell you that I like your username. Very creative. Good thing your name's Sue.:yes:
 
Sigh. So... after putting off going out on my own a couple years, I finally have my finances in order. (Need no salary year one, minimal year two. Can buy a location with rental income vs rent a space. Have first year marketing budget cash. Plus some.)

I applied to Erie- I'm in PA and they have great rates, plus I like the company as a whole. I'm one of those "I have to believe in the product to sell it" kinda gals.

Problem is Erie isn't recruiting in my area now. =(

I was advised to try another region, so I am going back through that process...

But anyone have any other thoughts?

Should I just try to get appointed with other regional carriers (Penn National, Donegal?)... if I do- would it ruin my chance to carry Erie eventually?

Would love other people's insight on this....

Thanks
Why would Erie care that you have other appointments? Are they captive?
 
Why would Erie care that you have other appointments? Are they captive?

My understanding is that they have a scratch agency program, where they limit your ability to write with competing standard carriers in the first 3 years. But the offset of that is enhanced commissions.

Honestly- that is info from last year so I'm not even 100% sure if they are doing that since the DM I talked to wasn't going into details.

On the flip side of that... I'm not sure how easy it is for a new agency owner (though I have ton of agency management on my resume) such as myself to get appointments with good reputable carriers... and by easy I mean- what are their requirements, is there a larger financial requirement, etc.
 
Sue, Where are you located? We are in southeaster Pa and looking to add a producer. We are independent agency and former State Farm. PM me if you want to speak. Thank you!
 
My understanding is that they have a scratch agency program, where they limit your ability to write with competing standard carriers in the first 3 years. But the offset of that is enhanced commissions.

Honestly- that is info from last year so I'm not even 100% sure if they are doing that since the DM I talked to wasn't going into details.

On the flip side of that... I'm not sure how easy it is for a new agency owner (though I have ton of agency management on my resume) such as myself to get appointments with good reputable carriers... and by easy I mean- what are their requirements, is there a larger financial requirement, etc.
It definitely is tough to find contracts. Instead of buying a building, I would explore buying an existing agency or joining a cluster.

I looked into the Premier group awhile back, and the upfront fee seems reasonable for everything you get out of joining them.
 
Sue, Where are you located? We are in southeaster Pa and looking to add a producer. We are independent agency and former State Farm. PM me if you want to speak. Thank you!

Thanks, I pm'd you... feel free to reach out to me.

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It definitely is tough to find contracts. Instead of buying a building, I would explore buying an existing agency or joining a cluster.

I looked into the Premier group awhile back, and the upfront fee seems reasonable for everything you get out of joining them.


Thanks for the lead with Premier...I'll check them out.

The debt/cash flow of buying an existing agency is what has made me shy away from that idea... around here independent agencies for sale are slim to none and when they are it seems like they are valued crazily! (though probably appropriate- I'm just not afraid nor incapable of building from the ground up so it doesn't seem to make sense to do it that way)

I've heard poor things about clusters in general... maybe I need to look back at them and see what the real deal is.

Thanks for the input!
 
If you have a quiet space to work in at home, you may be better served by putting the money you set aside for rent into marketing.

There are a lot of agents on the forum who make a good living without leaving their homes. I wrote a few hundred cases a year for several years without a single FTF sales call.

I'm know there are agents who have written a lot more over the phone and Internet.

I added Medicare/MA policies to my portfolio a few years ago. I see my clients FTF for the initial sale in their homes, but they generally renew with me over the phone.

I haven't sold P&C over the phone myself, but I know that there are agents on the forum who write a lot of P&C business in the comfort of their own homes.

Good luck whether or not you join the ranks of us "underwear agents." (I generally wear gym clothes. Others wear PJs.)
 
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