Agent Expenses

[Ins155]

This is probably going to sound ridiculous for you experienced agents but not having any experience with insurance I have to ask... Once I receive my insurance license for L/H I'm assuming companies would start sending me invitations to apply to them. Lets say NYL or Metlife or any company for that matter interviews me and hires me. At this point, what expenses would I have? I now know that I would receive sometype of training. Would that cost me anything out of pocket? When training is completed, any salary I may have received during training would then stop? At this point I would be strickly commision? If so, would there be further expenses for me not supplied by the company? Where would I get prospects from? If the company supplied them, would I be charged for them, or only commision to them for sales I've made? I know this is alot, but they're all things I wonder about.

 

[Mark]

It sounds like you are going to go captive. You need to ask the captive company that you are thinking about working for these questions. We have no idea what each captive company will offer you.

 

[Ins155]

Thanks for responding. Can you say typically if there are other expenses in the industry? I'm just looking to see what the norm is, not necessarily what they all do, just to know what expenses I could expect. I'm curious if they provide leads and do they charge for them since I would be working for them?

 

[moonlightandmargaritas]

Can you say typically if there are other expenses in the industry? I'm just looking to see what the norm is, not necessarily what they all do, just to know what expenses I could expect. I'm curious if they provide leads and do they charge for them since I would be working for them?

Over the last twenty years, I've discovered that the folks who have an "owner's mentality" are the ones that have the greatest chance for success in this business.

People with an "employee mentality" generally don't last too long.

That being said, it's just like any other business - you've got to be willing to invest and spend in order to grow it and be successful. If you wait for others to give you leads, etc., you may be waiting a long time!

 

[Ins155]

Over the last twenty years, I've discovered that the folks who have an "owner's mentality" are the ones that have the greatest chance for success in this business.

People with an "employee mentality" generally don't last too long.

That being said, it's just like any other business - you've got to be willing to invest and spend in order to grow it and be successful. If you wait for others to give you leads, etc., you may be waiting a long time!

I don't think of it as an "employee menatilty". I think of it as a learning experience. I have absolutely no experience whatsoever in insurance. How can I possibly expect to succeed by simply getting my license, investing money I don't have, opening an office door to the public with no knowledge. That sounds like a recipe for failure to me. So if I'm exhibiting the "employee mentality" I'm guilty. I simply asked some questions about the insurance business and for whatever reason, I can't get them.

 

[djs]

You do have to think about it as your own business, which means that you have to make it what you want it to be. The good news is, that means you get to decide what you do, how you do it, and whether or not you will succeed. Nobody else gets a say in this.

Don't wait for companies to solicit you. You can easily find the companies you have an interest in for your state, and apply to be an agent. In most cases, if you have a valid license, E&O insurance, and a checking account, you'll get accepted. Some will not officially appoint you until you submit your first case with them. That's okay, submit one, you are done.

The only real expenses you should have initially are the basics:
- Phone (avoid using a cell phone as your primary line)
- Internet connection
- Computer
- A pad to take notes and a pen to write with
- A sign that says 'Open for Business'
- E&O insurance

Then you need to find clients. Clients do not come to you. You have to find a way to get to them. Putting up a website won't get you any deals written, you have to drive traffic to the site. Putting an ad in the yellow pages or the newspaper will not cause your phone to ring (except for people calling to sell you something). You have to develop a real marketing plan.

Some things agents do, you get to decide what you want to do:
- Buy internet leads. These are tough, you'll be going against very experienced agents and big call centers. You'll win some deals because you'll be hungrier, but be careful of the overall expense, it adds up fast.
- Direct mail. Expensive to start. Without experience, it can flop. With a good plan, it can be successful.
- Telemarketing. One of the most successful and least expensive methods to get started. Be careful of the do not call rules.
- Local advertising. Find local things where you get to connect with local people, let them know about your new career and see if they know anyone who might need your services. Don't be pushy, but when done well, it will have amazing results.
- Talk to 10 new people a day.
- Anything else you can think of.

Costs vary drastically. If you think small, it is tough to start. I do P&C, so I'm the odd man on this board (a few others have the same disease), but I work a lot of leads every month. It pays off.

Oh yeah, realize this is a full time job. If it takes you 8 hours to get 2 hours of work done, you will not be successful. We all have days where we play a bit to much solataire on the computer, but that can be a very expensive game. Stay focused.

Dan

 

[finalexpensejim]

Talk to everyone you know - and talk to a bunch of people they know - and so on and so on. This will help your presentation. And you should seek out who you want to work for, look around and find what suits your interests/desires best...don't let them pick you.
If you want to be successful plan on spending a decent amount of money on leads, even if you're supplied leads you might want to consider your own source of leads also...

Good luck

 

[Tomfromtheshade]

When I started with Pru they gave me a $36,000 a year salary plus bonuses for hitting a certain production goal. They had a week of formal corporate training where you would learn the basics of the products they offered. Then they would have a sales manager go on appointments with you to show you how to do it. Basically, you need a mentor when you start out...someone who can teach you the ropes as far as sales goes and can teach you a thing or two about prospecting. Forget the friends and family bullshit. That can work sometimes, but mostly your friends and family will just avoid your calls. Network marketing is where the big money will be for a new agent. If you can get a steady stream of referrals you will be just fine.

 

[Ins155]

Thank you all for the positive feedback. New to all this, I appreciate all the bits and pieces of information from all of you.

 

[STIBROKER]

See,you have people helping you without starting a whole new thread that now is 3 new threads.....4 if you count this one...
Unanswered Questions

Thank you all for the positive feedback. New to all this, I appreciate all the bits and pieces of information from all of you.