Making the Move from Agent to Broker

[joshuaC]

This will all pertain to Washington state.

I've been a State Farm agent for the past several years, but I'm considering jumping ship and becoming an independent broker in Washington. I'm a little frustrated that my book isn't a marketable asset (can't sell it), but because I assumed going in that I was going to be an SF agent forever, that was never an issue before. It's a little frustrating for me now. Coupled with this decision to jump ship is that my SF agency is two states away from where I've moved my family. This has the downside of preventing me from bringing any of my business over.

However... I'm still interested in being an independent broker and am not afraid of starting over. I have saved up a bit, and I'm very comfortable marketing myself and I was a very involved agent - I handled personal lines, commercial lines, and the financial services products SF has to offer. I'm also comfortable running a team - I've always had at least 3 employees in the office and I understand the need to have somebody on hand to service, but also to be able to cross-sell as calls come in. I won't have the benefit of State Farm's "premium-builder" (subsidy for meeting premium goals), so I'll truly be starting from scratch.

So, for folks that have made the transition from agency to brokerage, what are some of the hurdles? I can read through the sticky threads that hopefully explain how to connect with individual companies and get that figured out, but I'm more interested in the running-the-business aspect of it. What was gained out of the experience? What's the downside of not having company support?

thanks!

 

[Rick Deckard]

Time is money, you know you have to start a new book from scratch. I applaud you for realizing what a monumental task you have on hand but obviously you have the intestinal fortitude to make it.

Whatever happened at SF is behind you once you let it go and flip the switch. You are going to need leads or be willing to cold call in the new location/state for a while but the key is you must take immediate action. Think of it like when you really did start from scratch. Every minute that goes by is another dollar subtracted from your savings.

-I would try to get 100,000 in premiums on the book sooner rather than later in the new place, just to get a foot hold and give you some proof of concept because you are not going to have a solid lead source for a while.

-Concentrate on Home and Auto, Commercial businesses might not like that you are not a true local. For example I am a Native Floridian, specifically the 305 and a UM grad, I have zero credibility issues in most places I walk in.

Once you have been there maybe 6-12 months you will have a better understanding on the community and its needs. Once you have some income coming in from personal, enough so you aren't draining the savings then open up a can whoopbutt on the Commercial.

Go get 'em, life is short and we're here for a flick.

 

[PhilL]

I am glad to give you some relevant thoughts if you want to contact me through my website.
Best to you.

This will all pertain to Washington state.

I've been a State Farm agent for the past several years, but I'm considering jumping ship and becoming an independent broker in Washington. I'm a little frustrated that my book isn't a marketable asset (can't sell it), but because I assumed going in that I was going to be an SF agent forever, that was never an issue before. It's a little frustrating for me now. Coupled with this decision to jump ship is that my SF agency is two states away from where I've moved my family. This has the downside of preventing me from bringing any of my business over.
However... I'm still interested in being an independent broker and am not afraid of starting over. I have saved up a bit, and I'm very comfortable marketing myself and I was a very involved agent - I handled personal lines, commercial lines, and the financial services products SF has to offer. I'm also comfortable running a team - I've always had at least 3 employees in the office and I understand the need to have somebody on hand to service, but also to be able to cross-sell as calls come in. I won't have the benefit of State Farm's "premium-builder" (subsidy for meeting premium goals), so I'll truly be starting from scratch.

So, for folks that have made the transition from agency to brokerage, what are some of the hurdles? I can read through the sticky threads that hopefully explain how to connect with individual companies and get that figured out, but I'm more interested in the running-the-business aspect of it. What was gained out of the experience? What's the downside of not having company support?

thanks!

 

[joshuaC]

Thanks for the replies.

Is there an online resource for independents selling their books, or portions of their books? I've got a bit saved up for this, and I've got an Allstate recruiter talking to me about some opportunities that I could buy into, but I think I'd prefer to go independent because of the flexibility I get to keep. Buying into a brokerage seems like a good way to get in and then grow from there.

I'm still juggling options, and while I'm personally ok with going scratch, I'd prefer to buy my way in if possible.