Insurance Agent Forum

[rainmind]

I have a couple of questions about becoming an independent agent.

1.) I gather from reading around here and other places, that an independent agent has the opportunity to make more money than a captive agent......Is this correct? And if it is why?

2.) How does one represent a company/companies if your an independent agent?

3.) Not needing sales training, do the companies you represent provide product and / or procedure training or are you on your own?

4.) Is there such a thing as being a salesman for a independent agency or is this the same as a captive.

5.) Do all companies take/ provide / have products for independent agents?

6.) What in your opinion are the important steps to becoming a independent agent?

Anything else you want to add , please do.....I want to learn!

Thanks,

Rain

[Markingriffin]

1. yes this is right

2. Call an MGA,IMO or the company

3. Some do and some don't. Most of the Imo's do offer some form of training.

5. Not sure if I understand the question. Yes all companies have products, if that is the question.

6. Find a mentor and talk to as many other successful agents as you can.

[rainmind]

Originally Posted by Markingriffin

1. yes this is right

2. Call an MGA,IMO or the company

3. Some do and some don't. Most of the Imo's do offer some form of training.

5. Not sure if I understand the question. Yes all companies have products, if that is the question.

6. Find a mentor and talk to as many other successful agents as you can.

Thanks Mark, number 5 is do all companies take independent agents?

[souldeux]

Originally Posted by rainmind

Thanks Mark, number 5 is do all companies take independent agents?

Some companies employ only captive agents, some companies only have independent agents, and some use both. Of the some that use both, some have captive-specific products that aren't available to independents.

And as far as becoming a successful agent, two things:

1. Wake up every day terrified that you're going to fail, and that will motivate you to do everything in your power to succeed.

2. Surround yourself with successful agents. Talking to a handful of folks on this forum has been very beneficial to me - it's great to be able to see someone else succeed and know that it can be done.

[rainmind]

Originally Posted by souldeux

Some companies employ only captive agents, some companies only have independent agents, and some use both. Of the some that use both, some have captive-specific products that aren't available to independents.

And as far as becoming a successful agent, two things:

1. Wake up every day terrified that you're going to fail, and that will motivate you to do everything in your power to succeed.

2. Surround yourself with successful agents. Talking to a handful of folks on this forum has been very beneficial to me - it's great to be able to see someone else succeed and know that it can be done.

Thanks!
So is it as easy as just signing up to represent a company if your an independent?

[agentexhorter]

Originally Posted by rainmind

I have a couple of questions about becoming an independent agent.

1.) I gather from reading around here and other places, that an independent agent has the opportunity to make more money than a captive agent......Is this correct? And if it is why?

2.) How does one represent a company/companies if your an independent agent?

3.) Not needing sales training, do the companies you represent provide product and / or procedure training or are you on your own?

4.) Is there such a thing as being a salesman for a independent agency or is this the same as a captive.

5.) Do all companies take/ provide / have products for independent agents?

6.) What in your opinion are the important steps to becoming a independent agent?

Anything else you want to add , please do.....I want to learn!

Thanks,

Rain

What to sell... is not so important, there's only a dozen or so options, and all can make you a very good living

Which insurance company to sell for is not the most important thing either, since for the most part they all sell the same thing, though there are tiers of pricing, underwriting, etc

The key is, and what will determine your success or failure, is your ability to get in front of 10-15 interested and qualified prospects each week

So, focus your search for some vehicle/opportunity that has a demonstated success in doing just that

[djs]

1.) I gather from reading around here and other places, that an independent agent has the opportunity to make more money than a captive agent......Is this correct? And if it is why?

This forum is heavily weighted on independent agents, so in general, you will find they will tell you IA's make more money. It might be true, I've never been able to prove this one way or another.

I do think it varies some by what you sell. For instance, in health, I can easily see how IA's do better. For P&C, I'm not convinced, since I know many captives that make some great money, a few IA's that do well, but in general, they seem to do about the same.

My guess is, if you ignore the bottom 20% and the top 20%, the 60% in the middle probably does about the same either way. It's more what fits you better.

Just my guess.... I'd like to see a study on this at some point. Probably never happen.

Dan

[rainmind]

Originally Posted by agentexhorter

what to sell... is not so important, there's only a dozen or so options, and all can make you a very good living

Which insurance company to sell for is not the most important thing either, since for the most part they all sell the same thing, though there are tiers of pricing, underwriting, etc

The key is, and what will determine your success or failure, is your ability to get in front of 10-15 interested and qualified prospects each week

So, focus your search for some vehicle/opportunity that has a demonstated success in doing just that

Thanks agentexhorter,

Could you talk more about
"so, focus your search for some vehicle/opportunity that has a demonstated success in doing just that"

What do you mean by this? Are you talking about Marketing/selling methods? Or something else?

Thanks

[agentexhorter]

Originally Posted by rainmind

Thanks agentexhorter,

Could you talk more about
"so, focus your search for some vehicle/opportunity that has a demonstated success in doing just that"

What do you mean by this? Are you talking about Marketing/selling methods? Or something else?

Thanks

Rainmind,

There are hundreds of thousands of agents selling the products of a couple of thousand insurance companies.

Look at the yellow pages under "insurance", ask people who've just closed on a mortgage how many letters they get, ask people 65-75 how many letters/cards they get each week.

The problem these hundreds of thousands of agents have, for the biggest part, is finding someone who is somewhat interested in buying what these hundred of thousands of agents are all selling, and they're all selling the same thing.

In the insurance industry, the marketing vehicle to accomplish finding some interested party to sell to is called a lead.

What one person or company calls a lead, may or may not be worth anything. And leads are generated, for the most part, by direct mail, interent websites and telemarketing. And each of them can be successful.

Scan this forum and you'll find at least 10-15 national mailhouses/lead companies which all will be touted by some and denegrated by others. For the most part, they are all mailing the same thing, the phone script is pretty much the same thing, the internet websites offer pretty much the same thing.

Concerning leads, what really matters is not the cost to mail a thousand pieces, the return on those thousand pieces or anything else, except how much anuual premium did you write that will stay on the books for at least one year.

If the key to success as an independent agent was to get a 100% contract and find a mailhouse to send out mailings for $300 a thousand, "if and buts" would become "candy and nuts"

[rainmind]

Originally Posted by agentexhorter

Rainmind,

There are hundreds of thousands of agents selling the products of a couple of thousand insurance companies.

Look at the yellow pages under "insurance", ask people who've just closed on a mortgage how many letters they get, ask people 65-75 how many letters/cards they get each week.

The problem these hundreds of thousands of agents have, for the biggest part, is finding someone who is somewhat interested in buying what these hundred of thousands of agents are all selling, and they're all selling the same thing.

In the insurance industry, the marketing vehicle to accomplish finding some interested party to sell to is called a lead.

What one person or company calls a lead, may or may not be worth anything. And leads are generated, for the most part, by direct mail, interent websites and telemarketing. And each of them can be successful.

Scan this forum and you'll find at least 10-15 national mailhouses/lead companies which all will be touted by some and denegrated by others. For the most part, they are all mailing the same thing, the phone script is pretty much the same thing, the internet websites offer pretty much the same thing.

Concerning leads, what really matters is not the cost to mail a thousand pieces, the return on those thousand pieces or anything else, except how much anuual premium did you write that will stay on the books for at least one year.

If the key to success as an independent agent was to get a 100% contract and find a mailhouse to send out mailings for $300 a thousand, "if and buts" would become "candy and nuts"

Ok thanks! What is your and others opinions on calling targeted lists?

Also another question popped into my mind.......Are the renewals more for an idependent than a captive? Meaning how much money you get per renewal each year?
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Originally Posted by djs

This forum is heavily weighted on independent agents, so in general, you will find they will tell you IA's make more money. It might be true, I've never been able to prove this one way or another.

I do think it varies some by what you sell. For instance, in health, I can easily see how IA's do better. For P&C, I'm not convinced, since I know many captives that make some great money, a few IA's that do well, but in general, they seem to do about the same.

My guess is, if you ignore the bottom 20% and the top 20%, the 60% in the middle probably does about the same either way. It's more what fits you better.

Just my guess.... I'd like to see a study on this at some point. Probably never happen.

Dan

A study would be nice, is there any industry numbers on this from any associations?

[scagnt83]

I have been on both sides of the equation on the life/health side:

1.In general, most IAs start off as a CA for a big company such as NYL, Mass, NW, Prud, Met, etc. They recieve training and the support they need as a beginer. Once they prove themselves in the industry they jump to being an IA to bring more solutions to their clients. So I would say that most IAs do make more. Most independent broker contracts have more lucrative commision scales too, just no beginer base or bonus.
MDRT is 70%+ IAs I believe, so that would be a good indicator.

2. Most companies have a contracting department. Check the website out or call their general customer service line and they can direct you. There are also brokerage firms that you could partner with. They help with backroom support and contracting, you just produce.

3. Most companies have regional wholesalers or reps who will do office visits or agent consults to train on products. There is usually an internal specialist as well who can help with case design. They will even help work cases with you if you have a large enough case.

4. You can be a "salesman" or associate of an indepentent agency. I am one actually. Different firms will have different setups as far as what they expect from you, or how you can run your business. I am basically totally free to run my business however i want, as long as I produce and am ethical.

5. No. However most do. In the P&C world allstate and statefarm both do not offer broker contracts. In the Life/Health world the only company I know of that does not offer an independent contract is Northwestern.

6. Be sure of yourself in the industry. Be focused. Learn about the different carriers and what their niches are. And know what your strengths are and where you plan to focus.