Best Options for Mid-Career Change to Insurance

[Eddy Johnson]

This is my first post so please forgive what may appear to be very basic industry questions. I have over 20 years experience in a technology business with roles in Sales Management and Business Operations leadership in Corporate America. I am considering a career change to build a business I can call my own that provides flexibility with my family and a retirement future. What is the best way to get started and achieve success, considering I need to replace a 6 figure salary in a reasonable amount of time. Is it a good idea to consider buying an existing book of business? How do you place a fair value on that? What is an average or reasonable estimate of required capital to make that happen? What companies are best to start with? Advantages of Commercial vs Residential?

 

[DHK]

First - I'm no expert on buying an existing book of business, but the purchase price should be based on a multiple of recurring revenue and possibly "good will" with the existing client base. That should be true with just about every business out there.

Now, since you said "Commercial vs Residential", can we assume you're looking to get started with P&C (Property & Casualty) insurance rather than L&H (Life, annuity, health) insurance? Your post wasn't specific and I don't necessarily want to assume which path you're looking for.

 

[Eddy Johnson]

Yes, I am initially thinking Property and Casualty but not totally decided yet. Thanks.

 

[ABC]

It will take you three years to prospect to get $100k. That’s,on the basis that you have current relationships you can call on.

Honestly, I would recommend going to work for a large agency. They are desperate for producers, if you look the part you end up managing a good block and have little marketing.

 

[MedicareMillionair]

This is my first post so please forgive what may appear to be very basic industry questions. I have over 20 years experience in a technology business with roles in Sales Management and Business Operations leadership in Corporate America. I am considering a career change to build a business I can call my own that provides flexibility with my family and a retirement future. What is the best way to get started and achieve success, considering I need to replace a 6 figure salary in a reasonable amount of time. Is it a good idea to consider buying an existing book of business? How do you place a fair value on that? What is an average or reasonable estimate of required capital to make that happen? What companies are best to start with? Advantages of Commercial vs Residential?

I have a good friend with a a State Farm agency and he told me it’s a tough task to create loyalty with clients for home and auto (even with State Farm name). I would strongly consider Medicare as an option. There is great inherent loyalty when you create a client. The renewals will prove to be rewarding.

Having said that, I can’t comment on commercial P&C.

 

[marindependent]

I would agree with ABC... It will take a you long time to replace your income on your own. Going and working for a large agency with a background like yours may be your best bet.