Becoming An Agent

[ZS78]

I currently do not have a license, so this is me seeking feedback from folks that do:

My question has to do with becoming an agent:

1.) Suppose I took the required pre-licensing courses, took and passed the exam, got fingerprinted, paid necessary govt. fees, got hired at an agency (captive or brokerage)... what would my first day/week/month look like? What would they have me doing?

2.) Advantages and disadvantages of working a life insurance as opposed to P&C? Would one be a better start vs. the other? Also, captive or brokerage to start out?

 

[Markthebroker]

I would suggest going to work captive on someone else's dime. Many of them will help you get license. Try P&C, try selling life. See if either one works for you. Commercial P&C is my bag, may or may not be for you.

 

[Travis Price]

I currently do not have a license, so this is me seeking feedback from folks that do:

My question has to do with becoming an agent:

1.) Suppose I took the required pre-licensing courses, took and passed the exam, got fingerprinted, paid necessary govt. fees, got hired at an agency (captive or brokerage)... what would my first day/week/month look like? What would they have me doing?

2.) Advantages and disadvantages of working a life insurance as opposed to P&C? Would one be a better start vs. the other? Also, captive or brokerage to start out?

So, it really depends on the type of insurance you sell.

For example, if you sell home and auto, you're likely working for an agent. You probably get a salary with a small commission/bonus.

You'll be doing policy changes, such as add vehicles or coverage. You'll be building relationships with different businesses and Realtors to get referrals. Doing policy reviews, etc.

With life and health, you'll be developing and nurturing leads. Giving sales presentations. Completing applications and continue to develop relationships for referrals.

Non-commercial P&C is an easier sale, because it's a required product, but it's really transactional. People will bounce on you as soon as they get a better rate.

Comm rates are small, but continue Everytime they renew at a level amount. You're building a book of business.

Life sales offer higher commissions, but renewals (when available) are much smaller.

Medicare sales is very competitive, but you get higher comm rates than P&C and these have level premiums from 3-8 years for Supps and renewal premiums last until you fail AHIP or the client changes. It's a book building process as well.

Hope that helps.

 

[Markthebroker]

Comm rates are small,

As far as everything Travis Price says, I don't disagree with anything he said but this above. And frankly, he may be 100% accurate to his experience, but it does not reflect mine.

I write small and mid sized businesses, but mostly small, and have been doing it about 8 or 9 years. All these numbers were smaller when I started, but not by a lot. Across all my policies and clients, my average policy is about $3,900 and my average client has 2.3 policies for a total of around $10,000. No, keep in mind, I have $500 one policy clients, and others with 5 or 10 or 20 policies. Some policies are $500 or $1,000 and others are $10,000 or $30,000 or $80,000. In addition to being higher retention than personal lines, the money is bigger. But it's also a tougher sale in many ways. Are you the type of person that could get yourself in front of a busy business owner, speak their language and close a $5,000, or $20,000 or $50,000 sale? Just another thing to think about.

 

[Travis Price]

As far as everything Travis Price says, I don't disagree with anything he said but this above. And frankly, he may be 100% accurate to his experience, but it does not reflect mine.

I write small and mid sized businesses, but mostly small, and have been doing it about 8 or 9 years. All these numbers were smaller when I started, but not by a lot. Across all my policies and clients, my average policy is about $3,900 and my average client has 2.3 policies for a total of around $10,000. No, keep in mind, I have $500 one policy clients, and others with 5 or 10 or 20 policies. Some policies are $500 or $1,000 and others are $10,000 or $30,000 or $80,000. In addition to being higher retention than personal lines, the money is bigger. But it's also a tougher sale in many ways. Are you the type of person that could get yourself in front of a busy business owner, speak their language and close a $5,000, or $20,000 or $50,000 sale? Just another thing to think about.

I only meant personal lines. Not commercial.

It's been quite awhile since I was P&C, but I think personal paid 8-10%. With much lower face to Commercial, your single case Comm isn't great.

I've never worked Commercial, so I can't give you any experience.