Becoming an AllState Agent, Should I Do It?

Discussion in 'General Insurance Agent Discussions' started by newkidontheblk, Oct 14, 2011.

  1. newkidontheblk
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    newkidontheblk New Member

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    I was contact by an AllState Recruiting Officer. I am seriously thinking of becoming either a scratch agent for them or I might just buy the book. I will have to go through their training either way. The problem is I don't know anything about this business and I am afraid to fail again. I was in the IT industry for 20 years. I left to open a medical spa but then the economy went south and I had to sold it. Since then I have been looking for another career that I can work for the next 10 to 15 years. I was hoping this opportunity might be it...although I am not vert certain. I have done some homework and the more I read the more I bcome skeptical about the whole thing. Since my husband makes decend money for both of us to live on, I don't really need to make money right away, although it would be nice if I could. In this economy, should I pursue to become an AllSate agent whether as a scratch agent or if I just buy the book? We don't have a whole lot of money to spare so I am going to buy the book I was thinking of starting out with a book that has about 1.1 million in premium. If you think buying the book is the way to go, how much should I offer for a book that has about 1.1 million in preminum and about 90 in retain rate and 50% for loss? What else should I look at in the book? Like I said, this is all new to me and I would appreciate any help that I can get. This is also my first day being on this forum. Thanks again.
     
  2. insurance1822
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    insurance1822 Guru

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    No.

    Do not consider Allstate.

    I can write a book on this, please listen to this warning. You do not want to start a career with Allstate. Expected results, massive rate increases, stock doing horrific, mandatory life numbers, staffing numbers.....listen....please....PLEASE.....Politely thank the recruiter for the information and be on your way.
     
  3. Josh
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    Josh Guru

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    I, along with many others, have had or are having a good time at Allstate.

    Allstate is not for everyone and you will have pressure to hit certain numbers, but they're not unrealistic. You're going to need a marketing plan and you're going to need to wake up every morning ready to push it out.

    If you don't need to make a ton of money at first and you can take most or all of your profit and stick it into marketing to grow your book, that's actually an ideal situation.

    Buying a book, to me, makes a lot of sense, especially if it's large enough to already have it's own established support staff. As far as what you should pay for the book, you should probably talk to some other Allstate agencies in the area and see what they think about it and the book. They can also be a great resource when it comes to helping you get started.

    Again, Allstate isn't for everyone, but for the right folks it's a great opportunity to take advantage of national branding, excellent training, great support, and excellent bonus potential.
     
  4. Guest
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    Guest Guest

    besides finding the right situation, what makes you think you are a good salesperson?

    Can you walk up and talk to strangers, can you speak in front of people you dont know? Can you BS with "any type of person"?

    There is alot, mainly the your type of personality, to being a salesperson.....

    You could be in the best situation, but if you are shy, not out-going, etc, it wouldnt be a good fit for you personally.
     
  5. Toman
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    Toman New Member

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    I opened a scratch agency 15 months ago and if what I knew now, I knew then, I would NOT do it. Lots of Blue sky promises and projections. Terrible training with little or no support. Technology is very old and crashes often, very unreliable. Contract is basically unilateral. They can change whatever they want when they want. Turn over very high. 33% in my area lasted less than 12 months. It looks like another 33% or more will go in the second 12 months. Morale very low with Tom Wilson running the company. The focus is on making a quick profit for the shareholders. Pulling contracts from 20 and 30 year agents that have been very successfull and built good agencies, but lacked current production. No loyalty. My local management is incompetent and only lead or manage in the best intererst of their bonuses and "expected results."

    My advise if you don't take the advise of the first response, would be to work in an agents office for at least 6-12 months so you might see a little reality. I only survive by working 80-90 hour weeks every week.
     
  6. xrac
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    xrac Guru

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    Last edited: Oct 28, 2011
  7. Bertolinoins
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    Bertolinoins Guru

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    State Farm and Liberty Mutual are the only direct writers I would consider working for if I were starting out all over again.
     
  8. xrac
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    xrac Guru

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    Based upon what I know scratch State Farm.
     
  9. CaptiveGuy
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    CaptiveGuy Guru

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    Yup, with Liberty you are a W2 employee with benefits and you don't pay any of the overhead. They pay for you to get licensed, your laptop, business cards, marketing etc. You get a base salary and decent new business commission but the renewals are round 1-2%. Good place to learn for free with no investment then make your way to freedom as an independent agent:yes:.

    I would recommend Liberty Mutual or working UNDER a captive or indepdent agent. Allstate agents are running to be IA I hear from my marketing reps.
     
  10. fjman
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    fjman Super Genius

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    I spent some time with them and I wouldn't recommend it. Even those that have very strong marketing plans struggle to hit their targets and I was working in an affluent marketplace. Owners with 10-20 years with them are being forced to sell and within a short period of time. Otherwise, you have to accept Allstate's pathetic buyout amount (and not even in a single lump sum!)

    My impression is that they are quietly working toward a more geico - like business model (ie, telephone reps).
     
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