New Grad: Critique my 5-year Career Plan

[outsidestudent231]

Hello,

I've been lurking for a while on this forum so first thanks to everyone for all the great insights.

I'm about to graduate from college (major in finance) and it seems like the best way to start is at a captive so I can learn the business. I've got an offer at a State Farm independent agency where I'm told I'll focus on P&C. Is this good or would it be better to start on L&H? Would love your thoughts on which is better to start. Or another firm altogether?

After 3 to 5 years I hope to start my own agency. Maybe SF or another carrier. I want a long career in insurance—thinking at least 10 years. I know I'm young but it is just fascinating... had a sales internship last year and like that you can do well if you work hard and smart.

So my big question is, what kinds of lines should I aim to learn the most about when I'm starting out? Which ones have the best commission, easiest to do in volume, and easiest to sell? Basically which are most profitable for someone young and hungry? Which ones to avoid? I figure if I know this going in I can focus on those to learn them better / faster.

Thanks!!

Joseph

 

[pcbinsurance]

I think Personal Lines to start and then venture into Commercial once you master PL.

 

[AssociatePI.com]

Personal lines might be best for an easier learning curve to get your feet wet, learn the trade/techniques then commercial once you understand the PL side of things

 

[WMG]

Hello,

I've been lurking for a while on this forum so first thanks to everyone for all the great insights.

I'm about to graduate from college (major in finance) and it seems like the best way to start is at a captive so I can learn the business. I've got an offer at a State Farm independent agency where I'm told I'll focus on P&C. Is this good or would it be better to start on L&H? Would love your thoughts on which is better to start. Or another firm altogether?

After 3 to 5 years I hope to start my own agency. Maybe SF or another carrier. I want a long career in insurance—thinking at least 10 years. I know I'm young but it is just fascinating... had a sales internship last year and like that you can do well if you work hard and smart.

So my big question is, what kinds of lines should I aim to learn the most about when I'm starting out? Which ones have the best commission, easiest to do in volume, and easiest to sell? Basically which are most profitable for someone young and hungry? Which ones to avoid? I figure if I know this going in I can focus on those to learn them better / faster.

Thanks!!

Joseph

Congratulations Joseph on your pending graduation.

As far as "what lines" -- what interests you? What have you had exposure to, what do you like, not like, etc. I don't know that there is a right or wrong answer as it's your choice. They are two very different businesses. My one piece of advice -- don't make a choice based upon commissions and which ones have the best commission.

When I entered this business -- one, I too was doing so, not as a job, but as a career. Two, it was also going to be "long" -- not 10 years, but for my entire career; and today I've been in the industry for almost 30 years. I started in the life/health field, and with no intention of leaving it, getting into other lines, etc. I didn't want to be a "general practitioner" -- I wanted to be a "specialist," an expert, and that's what I focused on. I also viewed this industry as much a "consulting" and "advisory" opportunity, as much as it was a "sales" opportunity. However, you are right -- the income potential is unlimited. Other professionals, in related fields -- trust and estate attorneys, accountants, etc. -- their income is "trackable" vis a vis time. Not all, but most, a massively high percentage.

In addition, 3 to 5 years is a bit quick to want to start your own agency. I've seen it, but it's more the exception not the norm. If you want a long career in this industry, long is more than 10 years, especially if you want to "go on your own" in 3 to 5.

That said, good luck. I wish you all the best.

 

[scagnt83]

I like L&H over P&C. But if you do go P&C then I would stay away from state farm. The agent contract is not what it used to be, neither is the agency owner contract. The old guys running shops now are on old contracts with much different comp structures. Same with the older agents. Find the multiple state farm threads on here and read them. Its not pretty.

If you want to go P&C I would ask all of your local indy shops for a position. You might want to get your L&H too and offer to sell L&H along with P&C for them since most indy P&C shops do not cross sell L&H like they could/should (and they know it).

If you go the L&H route then go with one of the big dogs such as NYL/NWM/MM/Guardian/Pru/Met/MoO.

 

[AlTheGud1sRtakn]

I like L&H over P&C. But if you do go P&C then I would stay away from state farm. The agent contract is not what it used to be, neither is the agency owner contract. The old guys running shops now are on old contracts with much different comp structures. Same with the older agents. Find the multiple state farm threads on here and read them. Its not pretty.

If you want to go P&C I would ask all of your local indy shops for a position. You might want to get your L&H too and offer to sell L&H along with P&C for them since most indy P&C shops do not cross sell L&H like they could/should (and they know it).

If you go the L&H route then go with one of the big dogs such as NYL/NWM/MM/Guardian/Pru/Met/MoO.

I'd agree with this completely.

Especially the part about taking a look at Mutual of Omaha, MassMutual, Guardian, or MetLife.

 

[RenegadeFL]

Hey there Joseph. This is pretty much what I've done.

After some time in banking I worked for 2 different SF agents over the course of 5 years. Got my licensing and some great experience.

I now have my own independent agency focusing on P&C. I'm also in Florida. Feel free to give me a call if you would like to chat any more.

Also, I haven't posted much on these forums but I've received/read some great advice here...a lot of knowledgeable and experienced agents.

Josh
321-422-3255

 

[clupaul]

I didn't see anything in your plan about becoming educated in the field that you elect to become a player. Attorneys and accountants and doctors are all recognized for their professionalism in the designations they hold. Businessmen select an accountant with CPA following their name more often than one without any designations because they recognize that the CPA has gone a step further to provide the best information to his clients.
If you opt for a Life Insurance Career, you will want to earn the designation CLU (Chartered Life Underwriter) and you will find that you will become the preferred agent for Life Insurance among those who are seeking the expertise of their agent.
Regardless of the field you select, you will find a designation to add to your name that presents to your potential clients that you have taken that extra step to provide them with just a little more than the majority of you competing agents.
I do not mean to imply that you cannot be successful without a professional designation and you will see from the responses in this forum that there are highly successful agents that have no designations.
The most important thing to remember is that you cannot be all things to all people and concentrate on the field that you select for your future. Don't be sidetracked by anything and you can become the "go to" agent for the field that you select.
May you be guided by the Divine powers that be in the pursuit of your career.

 

[pcbinsurance]

Most of the great agents in this Forum would rather be experts at explaining/selling Life Insurance instead of spending time and money getting designations behind their name.

I'm not dissing the CLU designation but your post has a certain "air" to it---as if you are better than your peers. I guess it's mainly this that prompts me to say this:

you will find that you will become the preferred agent for Life Insurance among those who are seeking the expertise of their agent.

In my opinion, your line above is pure hogwash. Your avatar name indicates you are enamored with yourself though and that's what's most important I guess.

PCB, BFD

 

[AlTheGud1sRtakn]

BFD

This is the most important designation for any focus by a large margin.