Need some advice about becomming an insurance agent?

Question

can anyone share their story if you are an agent, have tried to become one, etc.. I am researching companies to see whats the best match, have it narrowed down to Farm Bureau and State Farm. I know that this career takes work and the first year is hard to get going. let me know if youve started as a traditional (with a block of existing clientele) or fromscratch, how did it go for you? Iam promised that I should make triple figures in 3 years. I am familiar withthe process but I just wanted to hear from others ; if you are an agent; do you like it? was it easy to make alot of money?

Answer 1

When I first started as an agent it was for an independent agency but was commission only.  Boy, am I glad my wife was making a good income!  That first couple of years was slow going.  

I was licensed in both P&C and L&H before I started in the business but I concentrated on the P&C because I saw the potiential of those residuals.  With Life insurance, you get most of your compensation the first year.  Life renewals pay very little.  P&C pays less in the beginning but generally the same at each renewal.  It grows slower but makes life much easier once you have an established book of business.

After the first couple of years I was able to transition to commercial P & C insurance.  That is where I found my niche.  I loved the challenge and diversity of the commercial market.  (Don't even think that you can do commercial until you have a grasp of the personal lines marketplace.)  

It's too late to make a long story short so I'll just say that I eventually bought the agency that I first went to work for and have since sold it and semi-retired.  I moved across the country and I'm now helping a local agency grow their commerical book of business.  I will do that for another 5-10 years before retiring completely.  

All in all, insurance has been very good to me.  I'm really glad that I choose it over the other career that I was considering--real estate.

Answer 2

I started as a captive agent for United American, a Torchmark company that focuses on the senior market.  I had no book of business but was provided with a large stack of leads at no cost.  I eked by a living, but it certainly wasn't easy, and I consider myself to be a competent salesman.  I switched companies after being given instructions that violated both my ethical responsibility and the laws in the State in which I live and practice by the Branch President of United American.

Where I work now, I was given a small book of business to cultivate and am responsible for procuring my own leads, though tools are provided that make it easier than randomly perusing through the Yellow Pages, or lists.  The existing book of business gave me living wage while I court my new clients.  I have more than tripled my income from working with UA (coming up on 5 times that amount, actually).

Still, selling an intangible isn't the world's easiest gig, especially as biased as people generally are against insurers of late.  Not an easy buck if you do it ethically.  But extremely rewarding, especially when you get the email from the client thanking you after they've found out how important it is to have insurance after all.

And yeah, once the money starts coming in, there is a fair bit of it.

Answer 3

I am a licensed P&C agent in Ohio and I work at my Dad's independent agency. He started from scratch with just a handful of companies and it was HARD! He was previously a car salesman and knew just about everybody in the Tri-County area so he had no trouble getting business in. The first year is the hardest and just remember, your best advertising is word of mouth, treat people well and the word will spread. Good luck!

Answer 4

Mickey, this is going to be tough, tough, tough.  

As the man above mentioned, once the cash begins to come in, you are going to really enjoy it.  The residuals are fantastic!

My company allows us to write for different companies.  We are not captive.  We can go anywhere that is best for our clients.  

Incidentally, you did not metion if you are going to be P&C, L&H, or any combination.  Some think P&C is easier because it is much easier to obtain repeat business.  

I like the idea of being close to a full service agent.  But the E&O can be really rough, especially for a new agent.

(Our company charges new people $25 a month for the Errors and Omissions insurance.)

Answer 5

It is a very difficult business as the barriers to entry are extremely low. Basically any idiot can, and does,  hold himself out the same way you do. It is very hard to differentiate yourself since your clients can throw a rock and hit 100 people within a city block who in some manner are offering the same product.

The block of business the career agency company is offering is worthless. If it wasn't someone else would be working it, its that simple. Like  the gentleman above said, you would "eke" out a living if you were lucky.

To have success in this business you MUST have ACCESS to a VIABLE market. For example, if you are 20 years old and all your friends are stil in school, don't have cars and don't have families yet, you may have a market but it is not a viable one.

If you are an experienced salesperson, or have some capital behind you ,open your own brokerage instead of having the corporate leaches suck off you. You could mentor with someone as well who is looking to exit the business in the next 5 -10 years. That would be your ideal situation quite frankly.

I am now at the phase in my career where I have a very comfortable living on the residual commissions I have built up but I'll tell you right now, think long and hard before you jump into this. Be prepared to work like you never have before and deal with frustrations totlaly out of your control you could never have imagined, and do it for years before you see the returns you want.

That is the plain honest truth you will not hear from anybody else.