Agency Ownership

[Crazy Rick]

He finally went Indy and never looked back. He has done great and has 20 plus companies he writes.

I understand but when I get established, I want people workin for me. I want to be the one to take two weeks off and be able to tell my employees to call me on my cell if they need me, while I'm on the beach with my "toes in the sand and a drink in my hand." I used to work in the film industry in NYC. One of things I've learned from the Executive Producers was, "The more people you have working for you, the less you have to do and the more money you'll make". Working smarter, not harder to maintain that lifestyle that'll take nearly 20 years to obtain.

I see guys in town here where I now live owning agencies. State Farm for instance. Yeah, they drive fancy Mercedes 500's and all but they still have to get up in the mornings and go to an office. That's fine for the beginning, but sooner or later (if I own the office), I don't want to do that anymore.

 

[patch36]

I make a lot more money on my own than I ever did with employees. I no longer go into an office and I don't have to clean up messes or act like a fireman every time there is a crisis at work.

I have owned businesses with over 25 employees I was responsible for paying every two weeks and managing on a daily basis. It is way different than 'managing' a business with someone else's money on the line and the only risk you have is losing the job.

Not many who own a business, in my opinion, and are competent and successful will manage from the beach. When you own the business and have employees, in the long run you will work far more than your best employee. Maybe I did it wrong, or perhaps I didn't inherit enough money

 

[xrac]

I make a lot more money on my own than I ever did with employees. I no longer go into an office and I don't have to clean up messes or act like a fireman every time there is a crisis at work.

I have owned businesses with over 25 employees I was responsible for paying every two weeks and managing on a daily basis. It is way different than 'managing' a business with someone else's money on the line and the only risk you have is losing the job.

Not many who own a business, in my opinion, and are competent and successful will manage from the beach. When you own the business and have employees, in the long run you will work far more than your best employee. Maybe I did it wrong, or perhaps I didn't inherit enough money

Patch, I am with you. Maybe I am not a very good manager or very good at screening employees but my experience is that you better ride a pretty close herd on things if you want to make any money. As a business owner (I have ran 4 different ones) I worked on average 50-70 hours per week.

 

[theinuranceguy]

I have recently started my own agency, its been almost 7 months now, and I can tell you its really not that easy. Because at first you are forced to be in the field and still manage an agency... I dont recall the last time I worked less than 60 hours in a week...

Im on vacation right now, and have bunches of emails to catch up on...

But this is obviously more important at the moment, haha!

 

[fastrack1]

I understand but when I get established, I want people workin for me. I want to be the one to take two weeks off and be able to tell my employees to call me on my cell if they need me, while I'm on the beach with my "toes in the sand and a drink in my hand." I used to work in the film industry in NYC. One of things I've learned from the Executive Producers was, "The more people you have working for you, the less you have to do and the more money you'll make". Working smarter, not harder to maintain that lifestyle that'll take nearly 20 years to obtain.

I see guys in town here where I now live owning agencies. State Farm for instance. Yeah, they drive fancy Mercedes 500's and all but they still have to get up in the mornings and go to an office. That's fine for the beginning, but sooner or later (if I own the office), I don't want to do that anymore.

Hey, I work for State Farm and I only go into my office if I want to and I've only been at it for six years and have been doing that since day one. The key is to hire the right people - people that are better than you and then let them do their thing. It doesn't matter who you work for, it is how you manage your business.

 

[jsrconcepts]

I just want to say that if you look to own any corporation, you have to have a team, no one can run something that can grow so large on their own. You have to be willing to invest the time and you have to have some money backing you. Yes your risk is high, but the rewards are much Higher, and most people don't understand the difference between a Corporation, Self Employed and Business Owner. Anyone can be a Business Owner, anyone can work for themselves but it takes a team and branding to create a Corporation and I assure you that the CEO, COO, CFO and all the C People in a corporation correctly built can run their Business from the beach, most just choose not to .

Just my thoughts, not to step on any toes but just to educate.

 

[Crazy Rick]

Thanks for all the advise Chuck and everyone. Right, get the team together and prepare myself for the hours and playing fireman.(I've got years of experience doing this). Branding, working hard and not from the beach. Great risk = great reward.

After all the threads and advise and stuff, State Farm? I understand now being a 1099 and all having to meet those stinking numbers, like Fastrack does now "Hiring people who are better than I and letting them do their thing" (unlike my ex-boss who didn't know his ass from his elbow and inherited his money and buisness).

All the advise helped me narrow down my choices.

Thanks again.

 

[fastrack1]

jRe: Agency Ownership

Best of luck crazy Rick!

 

[blackhammockcat]

So Crazy Rick, what did you decide to do? Now that it has been a few months - I wondered how things had turned out for you.

 

[Crazy Rick]

Hey guys. I've been struggling these past few months. I've turned off my lead generator back in September because the money ran out. The folks sent some money so I bought a 1/3 page ad in a local magazine for $640 which won't run till February.

I've been studying to obtain my Realtor license because there are only 8 banks that are "in trouble" and there are 8k banks in the USA and everyone but everyone needs a place to live. And who knows, maybe I'll specialize in Commercial Real Estate.

My father knows someone who is now retired, who once owned 9 Title Insurance companies in four states as recent as ten years ago. I was going to call him. The second issue is, if I was going to run my own agency with employees and all and build them up like this retired man did: I'm sure he bought a small company and went from there -this too is my plan but to purchase a Mom & Pop place with a small book (horay! No more spending 80% of my time qualifying leads) in a small town probably up North after I obtain my P&C of course. Hire and promote within, keep it small. Hire more sales people but keep it small, let it grow on its own. Follow? I have no problem spreading the wealth to other sales people, nor do I care if they work out of their own homes. This would benefit themselves, me and the home office and the environment. But people like me, don't exist in my town and I'm beginning to think with all the fat cats with their huge salaries, people like me don't exist at all but in small pockets in extreme rural areas.

The past few months I've thought of working for an indy, locally but thought to myself "Rick, he's the only guy in his State Farm office for a reason. Why would he split commissions with another agent when he can do all the work and he does, and he keep 100% of it? There's a reason why he works by himself and it's not because nobody qualified has come forward yet." So, I gave up on that idea because I'm right and if I decided to work as a captive or for an indy, as always, and since I was a little boy, I'm looking for a way around all the rules and quotas and trying to locate someone like myself.

The only reason I was considering working for an indy is because of the relaxed rules and my working for them as a 1099 is greater than working for a huge monopoly like NY Life and obtaining their leads! I don't require anything else. I don't want anything else. I don't even want to come to an office. All I want are those little pieces of gold called Qualified Leads.

Therefore, this indy guy ( Joe Smith, anytown, USA), they'll give me the lead, I work out of my house, I close the deal, we split the commission. My time, my fax, my printer, my postage, my work, etc. That simple. If I can't close the deal, the lead goes back to them, I don't give a crap, take it back or whatever deal we work out. Ya see? Partnering with another indy who doesn't exist I'm beginning to think: anywhere.

Just like partnering with a lawyer or CPA, only with another indy: we split the commissions. But the dicotomy lies, that I explained previously: What does an indy, that drives a Mercedes 500 and is the only guy in his owned State Farm office have to gain by giving me his lead and splitting the commission when he (Joe Smith, anytown USA) can do the work himself as he has been for the past 30 years, and keep all of it himself? It's plainly obvious he doesn't wish to nor is he required to split the commissions with another indy guy.

Yes, I've sent out 22 letters in July to all the law firms in my area. I can't send 22 a day, I don't have all that much letterhead left. I've tried to partner with my mentor/teacher too. He allows me to use his experience and his P&C. If I meet a prospect and I'm not qualified to help them, I refer them to him. But since he's got all the experience (like the indy guy above now)....he has nothing to gain by sending me a prospect, follow?

Another reason why buying a small Mom & Pop shop up north, in a sleepy little town, is it's more my speed. And like my friend Angel Rodriguez said (who at one time owned four businesses) "Rick, you buy it, try it for a few years, make some money, sell it and move on." This makes sense to me.
Plus, I'll be in charge! I'm the boss. You salesman, you got out and do the leg work and close the deal. Oh you want 75%? instead of 50%? Fine. Done. Next. Greed doesn't drive me. Follow? And with this generous trait that I have allows/will allow me to obtain and retain most sales people.

Ya see guys. I've been stagnent. The GF's income only comes in twice a month. I've got to pay down the Visa bill, so I can start up the leads again. Each (hardly qualified lead) is $23 dollars. I know, I know, I need to spend money to make it.
That's why I'm starting them up again shortly. I've re-written my phone script and follow up letter and I'm going to pester the prospects a little more, rather than give up so quickly.

LTC is expensive. The trick is, again, is to meet that higher escilon, educated, consumer, who's....actively....looking for LTC. thru any and all channels available and possible. I absolutely refuse to stand on a cold street corner in my suit and tie and pass out flyers like I'm fourteen all over again and/or chase prospects down. Like Bob said "If the prospect can't see the value in my services after a few phone calls and follow up letter, I'll put them on my mailing list." Right!

It's either that or deal with quotas at Met Life (which I can't do since their nearest office is 75 miles from my house, thereby making it almost impossible to take their 2 year training course). Or remaining where I am now, struggling as an indy working out of his house. Or buy a small shop somewhere. Or obtain a huge loan (after incorporation of course) and buy the damn State Farm sign or whatever.

I know, this isn't rocket science but being at home all these months, alone, while the GF or wife or partner is out making a living everyday gets you down. And after a while your mind begins to go a thousand miles an hour and you don't know where to begin. For people like me, it's not easy to stay focused. For the past three months for example, I've been studying for the stupid, and easy, Realtor exam. In PA, you must first pass two paper exams, before you go to the testing facility. I've already taken them once. Now for round two...

Yes, commission checks in the Realty world only come in so fast, but at least it'll be something right? At least I don't have to argue with poor people from the gettos of N.J. who think LTC is burial insurance. No, that's not going to stop me from trying nor will I allow these uneducated people get me so down, my license lapses.

I could go on all day long. I've got some things in the pot as you can see it's all a matter of my picking something and going for it. Between the time we move from PA and my GF can receive partial pension, I'll do what I can in the insurance and the realty world the best I can. We can't exactly move up North till the housing markets come back and not for another two years anyway. When that time comes, some opportunity will present it'self I'm sure.

Thanks for asking. Sorry to be long winded, but I enjoy typing and it's not like I got anything else going on.