Am I Completely Crazy

AABI

New Member
2
Currently a captive agent and was given a 2.5 million dollar BOB 3 years ago. At first I felt very lucky to be given such a large book and I didn't have to relocate, agency is in the town I grew up in and currently live in.

Here are the problems that I seem to be having....

As a new agent I am making roughly 66% on residuals of what the previous agent was being paid, and I understand that. However for the first 2 years we aren't allowed to qualify for any bonus money, leaving roughly 20-30k on the table.

Current carrier is really starting to monkey around with our compensation plan and I am extremely upset with the way they are going about it.

On top of this the older agents in my district have no sales requirements (or they aren't enforced). I was the second highest new business producer in my district last year yet in December my job was threatened because I hadn't sold enough life insurance, although I had sold more apps and premium than the bottom 8 in my district combined.

Now they are saying that I have to hire a producer and need to budget 1K a month plus 50% commission. I paid myself all of $2500 last month.

In the past month it feels like I went from a career to "this is a stepping stone".


So here is my dilemma. Do i stick it out? Seems like it would take forever to get to the same size agency that I currently have as an independent. If i do decide to go indy do I start a scratch agency? Do I go to work for another indy for awhile. Suggestions???
 
I'm in a somewhat similar situation. I've got to say, it's VERY tempting to go ahead and go independent, where if something adverse happens, you adjust a bit and move on. My situation dictates caution in doing so, and I'd imagine yours does in a way too. I mean, you took over a good sized book, so it's probably not like you're hurting.

In your case, I wouldn't start scratch, especially if you haven't done it already. Keep the feelers out for a good independent agency to buy, but I probably wouldn't do it unless it was a REALLY good deal. Start socking away your earnings as much as you can now, so it's easier to buy one later. Put yourself in a position to have cash flow when you leave.
 
This sounds like State Farm...

Based on what has been said here again and again.

It is going to get worse before it gets better. They are going to hold your feet to the fire over the producer and the life production. And you are still at the whim of your manager.

Until you can get your scorecard bonuses and have a few years of renewals, it is just going to be more of the same of barely surviving.
 
This sounds too risky. But if I were you, I wouldn't start from scratch especially if you're not really that sure or if you really don't have any clear path on your decision.
 
Life insurance is easy to sell if you package it in with the home and auto. if you offer to add life insurance after finalizing the auto and home, then you will lose instantly. People will always say no. If you're saving a customer $40+/mo on their auto insurance already, package a 10yr term 100k policy for $15/mo along with their home/renters and they'd be more than happy to do it. I sell 5-7 life policies a month with this method. then later on, after 6 months, contact them later to convert them to a permanent larger life policy and add plups and other multi-line products.
 
Currently a captive agent and was given a 2.5 million dollar BOB 3 years ago. At first I felt very lucky to be given such a large book and I didn't have to relocate, agency is in the town I grew up in and currently live in.

Here are the problems that I seem to be having....

As a new agent I am making roughly 66% on residuals of what the previous agent was being paid, and I understand that. However for the first 2 years we aren't allowed to qualify for any bonus money, leaving roughly 20-30k on the table.

Current carrier is really starting to monkey around with our compensation plan and I am extremely upset with the way they are going about it.

On top of this the older agents in my district have no sales requirements (or they aren't enforced). I was the second highest new business producer in my district last year yet in December my job was threatened because I hadn't sold enough life insurance, although I had sold more apps and premium than the bottom 8 in my district combined.

Now they are saying that I have to hire a producer and need to budget 1K a month plus 50% commission. I paid myself all of $2500 last month.

In the past month it feels like I went from a career to "this is a stepping stone".


So here is my dilemma. Do i stick it out? Seems like it would take forever to get to the same size agency that I currently have as an independent. If i do decide to go indy do I start a scratch agency? Do I go to work for another indy for awhile. Suggestions???

You are crazy if you continue where you are at
 
So you dont own the book, they control your compensation, you could lose the book at any time, getting frustrated with them in your business and how successful you can be. Well I have been there and done that for 8 years. It was scary to make the move to building a scratch book as an Indy, but 2.5 years later and no company dictating my sucess....Damn it is good to be in the business again.

Lower expenses and get ready for plan B if that is what you decide. It is not easy starting over but I have done it and many others have sucessfully as well, if you want to control your future (as much as we all can)

I know Farmers, State Farm, Farm B, Allstate and AmFam agents that were tenured, scared but made the move and have never looked back.
Just my 2 cents of course
 
Captive environments are increasingly this way. I personally was a captive fifteen years ago and had a good book of profitable business but I was always being threatened because I didn't sell their overpriced term life products. Eventually my time was up and my misery was put to an end. I really liked the company and their products. I just didn't like their life and the amount of importance they placed on it. Farm Bureau, Farmer's, Allstate, Liberty Mutual, AM Family, you name it they all sound like what you are dealing with. Sadly it takes a while to replace your income but I would go indy if I could handle the initial financial setback. The odds are against you long term if you are already being threatened. It will not stop. You will run out of friends and family to write kiddie life policies on. It gets old. When you are tempted to write a policy on a friend's baby and offer to pay for it you know it is time to get out. I have a buddy who did this and it did not end well for him. This environment can ruin you.

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