Farmers, AmFam or Nationwide ... with a Twist.

[CarShowGuy]

I've searched the forums but could not find or put together an answer, so I'm posing the question. Thank you in advance to anyone willing to provide advise / input on this.

I've been in real estate sales for many years and am switching to Insurance. I've passed all my classes and exams. I have my license, but now need to get to work.

I have been approved to open a Farmers and an AmFam office and a person I know who owns a Nationwide Office is willing to hire and train me. My goal is to have my own office and be an "independent" broker in 3 to 4 years but I need product training and thought going captive would be better than an independent at this time (to take advantage of their training programs & knowledge.)

My options are as follows:
AmFam - AmFam will provide a salary (loan) for an defined amount for up to six months until I can open my own office (yes, I can live on this.) Training is for six weeks, 8 hours a day. I would be trained under an existing broker and all my policies I would write during the six months would remain with me. Then go on my own and sell for AmFam. Their plan does not pay commission on renewals, instead they provide a salary going forward (loan) and they keep the renewals. I keep all the New commissions. Minimum sales requirements - set number of P&C and 2 Life per MONTH.

Farmers - open my own office. Train for two weeks locally, then add more training as needed locally (week here and week there, etc.) If I wanted more training, go to regional training center, but at my cost. Open office as quickly as possible and sell, sell, sell. Their monthly payment is a loan and if I don't produce I have to return it. If I produce, I keep it. Minimum sales requirements - set number of P&C and 2 Life.

Nationwide - working under a broker, he would train me. Then he would pay for the beginning training at the regional center. I would sell for him and he keeps the "production bonuses" provided by Nationwide but I keep all the commission and the renewals if I stay with him long enough. When (or if) I leave, the policies stay with him. When opening my own office, I would start from scratch without policies and would need to qualify to open a Nationwide office or would go off on my own as an independent.

Question: If you were starting, and had these options, which would you choose and why? (Sorry for the long posting.) Yes, I will read all posts and will check back.

Again, thank you to anyone willing to offer advise/assistance. Changing careers is never easy and choosing the right company is sometimes even harder. Thanks again!

 

[F150]

damn, they are all screwing newbies

 

[CarShowGuy]

I agree, but you rely on the companies for the training. Trying to do it alone is next to impossible. I don't mind paying for the training, but the question is ... how much??

 

[shawnmwalker]

Car show Guy,

"Begin with the end in mind."- 7 habits of highly effective people.

If you have read the threads and seen the benefits of going Independent then why start captive. The subsidies are simply loans. (your words not mine)

Sorry, I should have started by saying, of the three options, I like the third.


However, Indy will always be the route to maximize earnings over your career and have more fun (because you are winning more often and you are always in the hunt with a great price and product and growing)

You will convert quotes to apps at a higher conversion, you will make more commission, and you will retain it better. You will not have a District manger pressuring you to sell, you will control your overhead better, and if you Indy the "correct way" you can get all the training and support you are looking for.

Good luck on your Decision.

 

[CarShowGuy]

Shawn,

Thanks for the reply. I semi-chose captive over Indy because I started in real estate as an Indy and had to learn everything on my own, and it was not easy. Between the marketing, the lack of name recognition and the back end work to satisfy the State and the local boards I was pulling my hair out (that's why I shave my head now. lol) I thought going captive for a few years, and learning the processes and the systems would help me in the long run. I also heard from numerous online readings and online videos that everyone recommends going captive for a few years to learn, then branching off as an independent

I understand the payments are loans and I'm capable of putting the money into a fund and not touching it until I have to pay it back. That's not a concern.

I thank you for your choice of the three options. The next question is "why" would you choose three instead of one or two??

Lastly, when you state "Indy the 'correct way'" what do you mean by that?? If you Indy the incorrect way, that usually means an end to the business. Any recommendations (books, videos, etc.) you can suggest to set up an Indy "the correct way?"

 

[VolAgent]

Car show Guy,

"Begin with the end in mind."- 7 habits of highly effective people.

If you have read the threads and seen the benefits of going Independent then why start captive. The subsidies are simply loans. (your words not mine)

Sorry, I should have started by saying, of the three options, I like the third.


However, Indy will always be the route to maximize earnings over your career and have more fun (because you are winning more often and you are always in the hunt with a great price and product and growing)

You will convert quotes to apps at a higher conversion, you will make more commission, and you will retain it better. You will not have a District manger pressuring you to sell, you will control your overhead better, and if you Indy the "correct way" you can get all the training and support you are looking for.

Good luck on your Decision.

So, is your group willing to take on an agent whose license is barely dry, train that agent, and give that agent the support needed to become successful?

 

[shawnmwalker]

Voltron,

We have in the past. We have four full time trainers that are capable of getting an agent up to speed. They are compensated by the level of success any new PGI agent is having. One Client: OUR AGENTS. ONE GOAL: THEIR SUCCESS. We turn on many professionals from outside of the industry who far surpass industry averages.

We also have a large number of Commercial Account Executives that are here to hold a new agents hand as they go through the learning curve of Commercial.

Having said all this, the thread is not about PGI and I am in no way trying to change the subject at hand. Again I choose number three in the options laid out.

To the thread starter: Going captive in the first years can be a very wise move! You WILL learn A LOT! I often encourage people to do this, depending on their life situations. Age, income needs, ability to learn, reality check, ext.

 

[djs]

There is dirty secrets in all 3 of the above. On the other hand, going indy up front in P&C is almost impossible.

Out of the options you proposed, your only real choice is to work for an agent/broker for a few years and then move out on your own, if going out on your own is really your goal.

Here is why:
The loan / subsidies / salary / whatever you call it is a forgiveable loan, based on hitting certain milestones, some of which may be as much as 5 years out. If you don't make it to the 5 year point, you will owe at least some of that money back. Its designed to make you commit to the process and to prevent people from coming in, getting 'trained' and moving on.

On the other hand, working for a broker means the broker owns all the policies you write. If you branch out, you'll have to buy your clients from the broker. Of course, this is at least an option. With the captives, you sell them your book when you leave, but usually can't market / rewrite those clients at least for a period of time. The good news there is you get the cash infusion of selling your book.

My real suggestion though is door #4. If you want to go independent, then go work for an independent broker for a few years, rather than a captive. It will be much more productive in the right processes.

Dan

 

[CarShowGuy]

Shawn,
Thanks for the reply again and thank you for quickly returning the thread to the topic at hand.

VolAgent,
Thank you for your comment as well.

F150 and VolAgent, regarding the topic at hand, if you were in my shoes, do you have a preference as to which choice you would make from the three options above, or would you go a different way?

Inquiring minds (mine) want to know?? lol Thanks!

----------

Dan,

Thank you! You posted while I was typing my comment so I didn't see your post in time.

Thank you for the honest and sincere feedback. I have an independent broker that I will speak to about your suggestion. I'll see him tonight at a Chamber mixer.

 

[VolAgent]

Voltron,

We have in the past. We have four full time trainers that are capable of getting an agent up to speed. They are compensated by the level of success any new PGI agent is having. One Client: OUR AGENTS. ONE GOAL: THEIR SUCCESS. We turn on many professionals from outside of the industry who far surpass industry averages.

We also have a large number of Commercial Account Executives that are here to hold a new agents hand as they go through the learning curve of Commercial.

Having said all this, the thread is not about PGI and I am in no way trying to change the subject at hand. Again I choose number three in the options laid out.

To the thread starter: Going captive in the first years can be a very wise move! You WILL learn A LOT! I often encourage people to do this, depending on their life situations. Age, income needs, ability to learn, reality check, ext.

It's Volagent, not Voltron. Although that was a cool show back in the day.

And that is why I asked. If there is a cluster willing to do that, it could be a great fit. But not all clusters are.