American Family AIT

[hook1169]

Hello everyone,

I have been "lurking" here for weeks and have finally read as much as I can in regards to my questions. I have also spent time on other sites reviewing/researching the information I am about to pose to you in my questions.

I am currently an employed IT Project manager and have several years of experience in this field. I have a diverse background in my career, everything from Climbing telephone poles to managing federal programs that exceed 65million dollars.

I want to get into the Insurance business and have been researching this for over a year now, both online as well as talking with agents and 1 ex agent. I really do not want to get into the debate of why or why not with my choice to make the leap into this field. I would prefer some advice and/or recommendations based on your experience as a professional in this field.

I have made my decision to go down the path of American Family Insurances AIT program. Which after several calls and emails with their recruiting folks has led me to believe that I will receive 6 weeks of training and 1 week of training at corporate in WI. I will receive a 3800.00 salary and receive commission on my initials, but renewals go to AMFAM to pay back my "loan". I get a stipen for an office of 2000 and 1500 for staffing. I would be in AIT status for up to 4 years and after that would have to pay back 1/2 at 0% at 300.00 a month.


I am curious to know if anyone else is currently or recently gone through this process? Most of the information on this site is several years old that I have found, actually on most sites. There does not seem to be a whole lot out there that i can find.

I know I have read alot about the failure rates of individuals in this industry, however i do not tend to find out much for the "why" did they fail?

I feel/believe that this is a business that if the hard work is put in and you're a good communicator and have the ability to network in your community or peers that you could be successful.

I feel like I should expect to struggle the first couple of years but if i stay committed that this should be a good career field with a good long term upside. I do not have any delusions of grandeur here where i think i am going to be the next bill gates. But i do expect to "NET" close to a 6 figure salary after 4 or 5 years consistently (meaning $80,000 - $100,000.01 a year). Am I crazy?

I know so much depends on the person, but I am hoping someone out there has some more recent AMFAM experience than 2008 or 2009 which is all i seem to find.

Thanks in advance everyone, i have found a lot of good advice here.

 

[AgentProvocateur]

I hope someone proves me wrong, but I don't think we have any AmFam agents here. It sounds like you have done your due diligence.

You say:

"I know I have read alot about the failure rates of individuals in this industry, however i do not tend to find out much for the "why" did they fail?

I feel/believe that this is a business that if the hard work is put in and you're a good communicator and have the ability to network in your community or peers that you could be successful."

I think everyone getting into insurance sales thinks the same thing, yet many don't make it. It takes more than hard work and good communication skills. You have to be committed, not only to reaching people, but to closing sales. I think you don't need to know why people fail, you need to know how people succeed at AmFam.

I'd take some AmFam agents to lunch, with differing amounts of time with the company -- 1 year, 3 years, 5 years -- find out what they are experiencing, and ask them how they are succeeding.

In my possibly-less-than-valuable opinion, AmFam is a pretty good choice among the captive P&C companies.

There are different challenges, at different times, with every company: tight underwriting guidelines, high rates, bad/useless/difficult management, etc. You can't predict the difficulties you'll face until you get into it. People succeeding find a way around the obstacles, whatever they may be. There's no magic formula for success, as long as you are flexible, willing to try & learn new things, and spend the majority of your time on activity leading to sales.

If you really want an insurance sales career, go for it. You have enough information, and if things don't work out at AmFam, you can go elsewhere. Have a contingency plan, but go for it.

 

[hook1169]

AgentProvocateur, thanks for your response and opinion. I too believe that I have done my due diligence and have spent much time researching "what fits best for me". While i know there is a large amount of work and risk associated with this career, there is also the possibility for a fulfilling and long career.

I appreciate your opinion and thank you again. I have spent time with a single agent, think i will take your advice and take a couple more to lunch or coffee.

Thanks again,

 

[JP Savage]

Haven't seen Amfam come up here yet. I am very familiar with Amfam and the program you are talking about(mine was gee similar). I'm a former Amfam agent. Their are specific reasons why I chose to leave them. What are some of your questions?

 

[me3000]

I'm looking at this as well. Why did you choose to leave AF?

 

[Agent 007]

hook1169,

It was my understanding that an AIT would be paired with an AmFam agent for an extended period of time, say a year, as that person serves as a mentor to you - kind of an additional part of training. You didn't mention this... Is this not the case?

 

[hook1169]

Sorry I have misused terminology the program I am looking into is not the AIT or Agent in training. It is the Agent Owner program.

As for deliberate questions JP Savage, I was curious if you were an Agent/owner and if you felt supported while you were in this position by the company? Also what were your reasons for leaving?

 

[JP Savage]

I was an Agent/Owner with Amfam. I originally went with AmFam because a long time family friend(who happened to be a State Farm Agent) said they had a good training program. Unfortanetly that program had changed before I started with them. Their Agent support is not very good. Be prepared to get lied to, a lot. I became friends with one my managers, and we still keep in touch. He has since told me that at one point managers were getting a bonus when they combined 2 agencies together. In other words, they would take a new agent who was hungry and had tons of time to sell with very little service work. Once that agent didn't hit their numbers(which will happen to most agents at some point) they would start laying the ground work as to where that agents book of business would go when released.

Don't get me wrong, AmFam paid their claims but management has some major problems.

Be very careful!

 

[hook1169]

JP Savage, when was this? I wonder if things have changed since then or if it was an issue in your area specifically.

I have been moving further down the path of being an agent and have recently contacted over a dozen agents, not only in my state, but those adjoining my state as well. I had agents who ranged in time served from 1.5 years to 10 years. Each had their small issues with things however over all each of them said that they would do it again knowing what they know now. Albeit they would change a few things along the way to be more successful sooner, mainly that they would invest in more staff up front for marketing, as several went solo or with only 1 marketer for the first couple of years. And that here in Washington there have been a few rate hikes that make the selling of the AmFam products a bit more difficult. As previously they were traditionally much lower in rates.

I appreciate your opinion as I am attempting to research all aspects before I make this large career change, as I am leaving a 90k a year job to do this. Like i said before my current job is a grind and I can't see myself doing this for another 25 years. I need to get out and start something different.

Thanks again.

 

[JP Savage]

Hook,

I completely understand your situation. Basically I did the same thing. I was an agent with them 4 years ago, and in the Chicago region. So things are probably different. I learned more about the business from Veteran agents than I did management or the company. I'm glad I started out as a captive agent, but I'm very happy to be indy now. Probably one of the most important points to remember is that they are going to inflate your numbers. When they present you with their final contract, stop-review-and bring it to your attorney. I had a few issues with my contract that they had to correct(it didn't match what I was originally told). Also learn your contract from front to back. A lot of agents don't due that, which always ends up burning them. Get a very good understanding of your "non compete form". That way if you do decided to make a break you will know what you can and cannot do, as well as how to prepare for your exit. If they are giving you a subsidy/front on your commission, or any salary pay, make sure you understand how your monthly pay is affected by your production.

Feel free to ask any questions, I will be happy to answer them for you.