There is risk in everything. You need to make this decision for yourself. I know why you are asking...you can get lots of good advice, but in the end you have to know what you have and what you can do. I don't know where you live but the economy plays a part and never forget the location of your business and your visibility to potential clients is super important. Many people make a great living doing it out of their homes, but that is usually after a large client base has been established. Good luck
Becoming a New Scratch Independent Insurance Agent
- Thread starter fins128
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Thanks for all the advice please keep it coming, I do have a little money put aside approx 6-8 months worth and live in Illinois. Let me explain how Erie starts their scratch agent program, they rely solely on the independent agent system no direct marketing on there website, they give you inflated commission for the first 3 years:
1st year 25% on all new business
2nd year 20% new and renewal business
3rd year 15% new and renewal (excluding commercial it is 20%)
4th year and beyond 10% P&C
Also for the first year the will loan you 3000 per month, to be paid back beginning the forth year but lets say the first month you use the 3000. then month 2 you sell 4000 worth of premiums the 1000. goes back to start paying off the loan. I was considering starting out of my house just to keep expenses low for the first year and start building a book of business. The biggest downfall is for the first 3 years you are captive, they will allow you to have 1 other insurance company but not one that competes direct with them (so like a progressive or substandard) I could have as many health and life as I want and same for specialty auto policy. Does this sound like a good opportunity?
Thanks again
1st year 25% on all new business
2nd year 20% new and renewal business
3rd year 15% new and renewal (excluding commercial it is 20%)
4th year and beyond 10% P&C
Also for the first year the will loan you 3000 per month, to be paid back beginning the forth year but lets say the first month you use the 3000. then month 2 you sell 4000 worth of premiums the 1000. goes back to start paying off the loan. I was considering starting out of my house just to keep expenses low for the first year and start building a book of business. The biggest downfall is for the first 3 years you are captive, they will allow you to have 1 other insurance company but not one that competes direct with them (so like a progressive or substandard) I could have as many health and life as I want and same for specialty auto policy. Does this sound like a good opportunity?
Thanks again
- 9,744
Looks like a good opportunity, IF you have a marketing plan designed to bring you a continuous flow of new prospects.
Everything else is academic.
What's your plan?
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Optimism is nice, but reality is nicer. Last time I checked, they didn't accept it @ Publix as payment for groceries...
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- 14,808
I take at least 20 to 30 "I'm thinking about going independent" calls every week. It's tough to give generic advice.
Can you open a coffee shop? CAN you? Sure. Will you make it? Well, there's about 50 determinant factors.
But let's start out with whether or not you have a passion for coffee.
Can you open a coffee shop? CAN you? Sure. Will you make it? Well, there's about 50 determinant factors.
But let's start out with whether or not you have a passion for coffee.
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- #16
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My ideal plan would be to plug the phone in and have non-stop phone calls but the reality is that will not happen. I used to own a business in a neighboring town and have all my old customer contacts, but I sold my old business over 3 years ago and I am afraid some of my old customers may not even remember me but thats where I would start. Next I would try to do as much free advertising on the internet as possible (, lankan, twitter etc), then look into buying leads, and finally hit up family and friends. I am not sure about doing mass mailings instead I would consider walking some larger neighborhood community's and hang information pamphlets on peoples front door and of course try to expand off referrals. Any other suggestions?
My ideal plan would be to plug the phone in and have non-stop phone calls but the reality is that will not happen. I used to own a business in a neighboring town and have all my old customer contacts, but I sold my old business over 3 years ago and I am afraid some of my old customers may not even remember me but thats where I would start. Next I would try to do as much free advertising on the internet as possible (, lankan, twitter etc), then look into buying leads, and finally hit up family and friends. I am not sure about doing mass mailings instead I would consider walking some larger neighborhood community's and hang information pamphlets on peoples front door and of course try to expand off referrals. Any other suggestions?
- 1,076
That is a pretty good deal. If you have 6-8 months living expenses in savings with that set up and your wife is on board... I would go for it. The wife being on board is a huge issue... if she doesn't buy in then you are going to have trouble getting started.
Very good point. Because of the long hours you will be putting in for the first few months, it is imperative that your wife supports you and understands it.
- 140
Going Indy was the best move I ever made. However, I spent about 3 years preparing for it.
Erie insurance is a great carrier. I just went through a multi-month long process of adding them to my existing agency. Did I add them to my current book of carriers? Nope. They simply could not compete with what I already had within my agency. We had their in-house specialist quote on multiple clients homes/autos/businesses from various walks of life and they were only competitive about 1 out of 5 times.
So, my advice....going Indy is great if you're prepared and have competitive carriers. I just don't see Erie as part of that plan which is unfortunate as they have a great product.
Bob
Erie insurance is a great carrier. I just went through a multi-month long process of adding them to my existing agency. Did I add them to my current book of carriers? Nope. They simply could not compete with what I already had within my agency. We had their in-house specialist quote on multiple clients homes/autos/businesses from various walks of life and they were only competitive about 1 out of 5 times.
So, my advice....going Indy is great if you're prepared and have competitive carriers. I just don't see Erie as part of that plan which is unfortunate as they have a great product.
Bob
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