Best Way to Get Started As an Insurance Agent?

[wayside79]

Hi,

I'm currently finishing up my business degree and have been looking at getting into the Insurance Industry. I have been looking at a wide variety of companies to see what each offers to new agents, and trying to narrow my options down to maybe 2 or 3 companies I like. Being that I would be a newbie to the industry, I was wondering what the best way to get my feet on the ground would be? It seems like im hearing alot about starting up as a team member or a producer for a current agent.. Does being a producer mean that I would be a licenced agent selling insunrance under an established agent while learning the business through them aswell?

Just looking for some feed back so I know im get started of in the right place.

Thanks

 

[jhuang]

Hi,

I'm currently finishing up my business degree and have been looking at getting into the Insurance Industry. I have been looking at a wide variety of companies to see what each offers to new agents, and trying to narrow my options down to maybe 2 or 3 companies I like. Being that I would be a newbie to the industry, I was wondering what the best way to get my feet on the ground would be? It seems like im hearing alot about starting up as a team member or a producer for a current agent.. Does being a producer mean that I would be a licenced agent selling insunrance under an established agent while learning the business through them aswell?

Just looking for some feed back so I know im get started of in the right place.

Thanks

You going to help them run their office and eventually be a business owner or learn how to be a producer?

 

[Josh]

There isn't really going to be a "best way" for you based on the information you shared. What's right for you might not be what's right for the guy down the street and what's right for the guy around the corner might not work for anyone else. Each line of insurance tends to have it's own personality type.

Most of this insurance forum is based around the concept of being an independent producer. There are a great many individuals that work directly for insurance carriers as w2 producers, adjusters, administrators, actuaries, underwriters, and a list of other job descriptions. In any discussion on here those are almost completely ignored as options. For the most part those are jobs with little upside potential, but steady income. The average agent ends up making no money.

What is your motivation for wanting to get into the insurance industry? Personally, I think if it's to help people, that's junk and you need to find another career. If it's to get rich selling products that everyone wants, you're probably going to be in for a rude awakening. If it's to have a steady income, this probably isn't the ticket either. Most of the folks that excel in the insurance industry are hungry and driven. I say that, but let's get back to the personality types:

P&C agents are typically like farmers. They'll work hard for almost no money and eventually they can build up a decent book of business. It's very difficult to get started with your contracts, the commissions are low, and there can be a lot of service work. Eventually you can build up to a very healthy passive income, but that's a life pursuit, not something that will happen in a few years.

Life agents are typically very aggressive. These are the hunters of the insurance industry. Agents that do well with this generally have to have to focus more on marketing than any other type of agent. No one wakes up one morning and says "I want life insurance". I was hanging out with a friend this evening who actually has "been thinking about getting life insurance" for a while now. I have a firm policy with friends and family where I'll let them know what I do, if they ask for help I'll help them, but I don't push. He's begging me to push him so I will, but that almost never happens. Cold calling, networking, buying internet leads, more networking, begging for referrals, these are all things that an effective life insurance agent needs to be familiar with and probably expert in at least two or three of them.

Everyone else is usually somewhere in the middle. Medicare agents are typically a little more like P&C agents than life agents, but they have less service work. LTC and annuity agents are a lot like life agents, but generally focus more on building relationships with a more affluent crowd and work that pool vs aggressively looking for new business through direct marketing.

Not for nothing, but your post had 8 typos I noticed right away. Maybe it's just late and you're tired, but most agencies that would want to hire a producer under them for some office work and offer any type of a base salary are probably going to expect a higher degree of professionalism. On the other hand, most insurance companies (and recruiters) could go one for days about how sloppy the contracting paperwork and applications for insurance are filled out. There are a great many insurance agents that are very successful because of their sales and marketing ability, and not so much based on their ability to spell or use proper grammar and punctuation, so it's not going to put you at a great disadvantage in that respect.

What makes you want to get into the insurance industry? What are your salary expectations?

 

[nyc2phi]

to add what josh said...

You also have the option to do both p&c and life. A lot of times people are more receptive to listen to you when you are talking p&c which will get your foot in the door for life.

I would suggest working for a captive company since they will train you better then an independent agency owner would. They will also throw a little more money at you to get you started.

For life you could look at places like New York Life, MetLife, AXA, Pru, ect. Some of these places will ask you to get a securities license as well because some of their products are market based.

For p&c places like Liberty Mutual, State Farm, Allstate, & Nationwide are places to consider.

Look around, apply to a few places, ask a lot of question, and decide what will work best for your situation.

 

[wayside79]

I'm interested in becoming a P&C agent. The companies I have been looking into are State Farm, MetLife, Nationwide, Allstate, and Farmers (Not so sure about Allstate and Farmers). Right now Nationwide and State Farm are my top two choices because they seem to have the best start up programs for new agents.

The thing that I'm unsure about with State Farm is the city I'm in (about 150,000 pop) is highly saturated with State Farm agents as compared to Nationwide, which I have found only one agent here in the city. One red flag that comes to mind there; does nationwide have competitive prices in my area? This is something I'm looking into.

As far as salary expectations, I have seen a lot of numbers thrown around on the web. A realistic first year salary to me would be anywhere from 15K to 35K. IF I market myself well and can get people into my office and close deals, I feel I could start out well above 15k. What are your experiences in seeing first year agent salaries? What has made new agents succeed or fail in your opinion?

I'm a very self driven person that wants to build something that is respective, and that I could call my own. I know that there is money to be made in the insurance industry as long as you conduct business the right way.

Becoming an independent agent is something that I'm very interested in. Starting out as a captive agent seems like the best way to get my feet wet though. Learn the business as a captive then move into becoming an independent agent. Any other advice on becoming a new agent for State Farm, Nationwide, Allstate, or MetLife?

Also any thoughts on marketing products to close friends and family members?

 

[xrac]

I'm interested in becoming a P&C agent. The companies I have been looking into are State Farm, MetLife, Nationwide, Allstate, and Farmers (Not so sure about Allstate and Farmers). Right now Nationwide and State Farm are my top two choices because they seem to have the best start up programs for new agents.

The thing that I'm unsure about with State Farm is the city I'm in (about 150,000 pop) is highly saturated with State Farm agents as compared to Nationwide, which I have found only one agent here in the city. One red flag that comes to mind there; does nationwide have competitive prices in my area? This is something I'm looking into.

As far as salary expectations, I have seen a lot of numbers thrown around on the web. A realistic first year salary to me would be anywhere from 15K to 35K. IF I market myself well and can get people into my office and close deals, I feel I could start out well above 15k. What are your experiences in seeing first year agent salaries? What has made new agents succeed or fail in your opinion?

I'm a very self driven person that wants to build something that is respective, and that I could call my own. I know that there is money to be made in the insurance industry as long as you conduct business the right way.

Becoming an independent agent is something that I'm very interested in. Starting out as a captive agent seems like the best way to get my feet wet though. Learn the business as a captive then move into becoming an independent agent. Any other advice on becoming a new agent for State Farm, Nationwide, Allstate, or MetLife?

Also any thoughts on marketing products to close friends and family members?

Read the threads on State Farm before going that route as an agent. However, it is not a bad place to learn the business in a producer position under an agent.

 

[darcontek]

I'm trying to figure it out as well. Maybe just keep on cold calling... sigh