Breaking Through Being a Captive (advice Needed)

[Praeter]

First I'd like to outline my situation. I work for State Farm currently and am licensed only in p&c. I've posted in the SF Agent thread about my distaste for the company, but I am at a point where I NEED to make this work for the time being. I'm struggling so bad financially I can't quit and for now this is goign to be the best opportunity while my wife is in school finishing her CENA certificate.

My attitude has diminished the last 2 weeks and I find myself being almost angry about having to go to work because I feel like there isn't a light at the end of this tunnel, but I realize deep down insurance can be such a great opportunity.

I work with 2 other team members and my agent. Both team members are L&H and P&C. We share calls, service work for any client, and misc. tasks. We are paid $700/month salary + 8% commission from our sales minus chargebacks. We do NOT get residuals.

I've talked to my agent about our lack of technology, personal marketing strategies, and other misc. things. I've been told everything needs to be approved from SF corp. before anything can be implemented.

I CANNOT use personal created mailers or personal printer, scanner, or any other pc related item for SF business. For mailers I CAN use SF created items from what my agent purchases. If I want to have more of a home office, I must rent equipment from my agent who rents it from SF.

There is no true training. Their "boot camps" I found were somewhat a joke. I am no seasoned sales person and have not tasted true success in this field, yet I felt like I had more sales(not product) knowledge then the AFS's teaching. Since I am actually an employee of my agent, and not SF, SF is not obligated nor do they have any help with training.

I want to use SF as a springboard for success in this business. Otherwise I will be going to college to get a certificate in a computer related trade to get a "normal" paying job.

I could really use some help on where to look for online training for insurance, how to efficiently learn this field and for now, p&c products and specifically how they work, and anything that can make me a better insurance salesman rather then what SF wants their people to be.

Thanks for all feedback. I truly appreciate anyone taking the time to read this and respond to this.

 

[infoe]

At another agency actively trying to grow coupled with an already proven track record. Whether in or outaide of sf.

 

[BNTRS]

Here's one of the first questions everyone else (whether it be to another captive outfit, or an IMO/BGA/etc.) will ask, how many policies are you writing each month?

How long have to been doing this?

If you have financial woes, this is a very unforgiving business to be in.

How have you been prospecting?

 

[Praeter]

Wow late reply is late! I've been out of it for the last week as it's flu season in Michigan!

Here's one of the first questions everyone else (whether it be to another captive outfit, or an IMO/BGA/etc.) will ask, how many policies are you writing each month?

How long have to been doing this?

If you have financial woes, this is a very unforgiving business to be in.

How have you been prospecting?

I started in September so from then till now, Sep=18, Oct=9, Nov=9.

This is my first position in the insurance industry and yes, this has been very unforgiving. My biggest check for two weeks has been $500 even and that's with $180 reimbursement for my licensing.

Prosepcting was internet leads and referrals. Now, it's just referrals and sales genie. We have to stay in the office during business hours so no outside prosepcting.

I think I may have to throw the towel in because I can't support my wife and myself off of this pay. It has started causing major home problems. It's disappointing because I like insurance and I like the job itself.

 

[yomomma]

Are you making a lot of cold calls to businesses on workman comp and etc.,?

 

[Praeter]

Are you making a lot of cold calls to businesses on workman comp and etc.,?

I should have mentioned in the OP, I am only licensed for P&C. All business and commercial is to only be handled by the Agent. So right now, I'm only looking at auto, homeowners, renters, and personal article policies.

 

[insurance1822]

If you choose to make a career out of insurance; consider yourself at step 1. Your an entry level producer with poor pay. Right now your most likely gaining experience (general agency operations, phone confidence, prospecting 101, nuturing clients, closing policies, the importance of servicing and general "struggle")

You need to go through this phase.

Your only 3 months in...there is plenty to learn. While the dollars in your pocket might not be great, the experience is necessary. We pay our producers $18,000 a year salary, 10% up front and 3% renewal with bonus as well. They are expected to produce at least 10k a month in premium. In that particular operation they are captive. Many of my colleagues complain we over-pay our producers. None of my colleagues out-write my agency....

I started in the same boat as you (although w/ slightly better pay because yours definitely sucks.)

If you want to be successful in insurance, or anything, you need to see the bigger picture outside of your current situation. Everybody starts at the bottom.

Can you find better pay as a producer somewhere? another captive, an indy, a direct writer...probably. What are your long term goals? I have a friend with a $25,000,000 indy (that is a HUGE agency) whose best paid personal lines producer makes $65,000...that's prob your MAX in personal lines as a producer and she's been 15 years with this guy (and she writes 25k a month in premium.)

If your worth your weight then solicit other agencies and negotiate up front/renewals and see what your personal sales numbers justify.

Welcome to the business!





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[Likemlouder]

If you want to be successful in insurance, or anything, you need to see the bigger picture outside of your current situation. Everybody starts at the bottom.

Can you find better pay as a producer somewhere? another captive, an indy, a direct writer...probably. What are your long term goals? I have a friend with a $25,000,000 indy (that is a HUGE agency) whose best paid personal lines producer makes $65,000...that's prob your MAX in personal lines as a producer and she's been 15 years with this guy (and she writes 25k a month in premium.)

If your worth your weight then solicit other agencies and negotiate up front/renewals and see what your personal sales numbers justify.

Welcome to the business!





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i agree do what is best for your family

 

[yomomma]

We pay our producers $18,000 a year salary, 10% up front and 3% renewal with bonus as well. They are expected to produce at least 10k a month in premium.

That is McDonald wages really. Your producers are better off going with a B/D and get at least a 1-3 year salary for at least 50k. They will also get 45% instead of the 10%. You won't learn the P/C side, but at least you will have the Health to work off (and of course securities).

Can you find better pay as a producer somewhere? another captive, an indy, a direct writer...probably. What are your long term goals? I have a friend with a $25,000,000 indy (that is a HUGE agency) whose best paid personal lines producer makes $65,000...that's prob your MAX in personal lines as a producer and she's been 15 years with this guy (and she writes 25k a month in premium.)

You can find better pay after 15 years in the business - it is called mowing lawns. Hell, with 15 years in lawn business you would make at least 100k with a huge clientele.

This pay for 25k a month in premiums is highway robbery for the producer. But if people are willing to work for that arrangement better for your friend.

I think I may have to throw the towel in because I can't support my wife and myself off of this pay. It has started causing major home problems. It's disappointing because I like insurance and I like the job itself.

When you go into these types of sales you really need to be young (living with your parents) or have a spouse or another business backing you up. The rewards are there, you just have to go to the right place. I am going to learn from a veteran Farmers agent and he is going to pay 50% upfront and same for trail (I find that fair to learn the business). There is not going to be a salary, but I have another business that supports family. He said that is the standard, and you might want to start somewhere like there.

Agencies that pay you $700 month and 8% commission is slavery. If you really want to make it in the business I would work at night at any wage higher than minimum(which would pay you 2x more than at that idiotic State Farm slave pit), and then make another arrangement with another agency.

Don't get caught working for these slave pits. If you can make more money mowing lawns then you are in the wrong business.

 

[Praeter]

I've learned so far that most of the "big boys" are really just looking for slave labor while paying 1970 wages. I ended up leaving my SF office. I'm so glad I left how I did, on good terms, because 2 days later my colleague and friend there called to tell me the agent cut her pay in half, and she is the top producer! I have an interview with Allstate on Jan. 11th. It's at least $10/hr plus 10%. I will be able to pay some of my bills if I get the job. It didn't take long to see being Indy is the way to go and I should have done more research before entering this field. I would've been better off working as a shift leader at Taco Bell then entering insurance to be candid. I say that because like others have said on this forum, you need reserves when entering this field. I do not. I do however see the greatness of this field, just not the way I approached it.