Buying an existing agency

Jun 5, 2008

  1. itsagreatday
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    itsagreatday New Member

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    My husband would like to exit his current line of work and enter into the insurance sales industry.

    Here's a little info about my hubby, I'm hoping you all can talk some sense into him...

    14 yrs major health insurance call center experience/management, also some mortgage experience, not sales.

    Wants to sell auto/home/life insurance, not health!

    Wants to buy an existing agency, with absolutely no experience.

    If not the above, wants to open an agency in a high traffic shopping center, next to a supermarket???

    We have about 60k in reserve to do this.

    I do not work and we have 5, yes 5 kids.

    Any advice on how to go about this rationally would be great. As I said, he needs to hear from those already out there who can talk some sense into him :noteworthy:

    Thanks in advance, I have read a lot on this forum, and there are some really smart cookies on here!
     
  2. xrac
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    xrac Guru

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    Sounds like the on set of mid-life crisis. It hit me in my late 30's. I did something wild and crazy that scared my wife to death but I succeeded. However the most important part of it was while she was scared she supported me in doing it. The best advice I can give is he should be sure you are on board with what he does.
     
    xrac, Jun 5, 2008
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  3. itsagreatday
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    itsagreatday New Member

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    How did you know my hubby was in his late 30's lol!!!

    I am all for it, I'm willing to support him in it, I just never pictured him doing this, so I've been thrown for a loop.

    He has also possibly talked his dad into backing him up financially.

    How will he do this without schooling/a few years office experience under another agent?

    He has a lot of contacts with the company he is with now, but he seems to think that having a store in a shopping center will generate so much passerby business and word of mouth business. Would a shopping center set up be of that much benefit to him?

    Thanks so much for your help. It is nice to hear unbaised comments from people that don't know you/3rd party.
     
  4. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    OK, you've got 60K to work with.

    That will buy you an agency that does 120K in commissions. After expenses, maybe 60-70K in income.

    And you've no fallback, or "working capital".

    So you keep 20K in reserve. 40K will buy you an agency doing 80K in commissions. Maybe. The smaller you get, the more volatile it's gonna be.

    That's gonna be "take-home" income of about 55K.

    Can you live on that?
     
  5. Sam
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    Sam Founder Administrator

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    Where can you buy 120k in commissions for 60k?
     
    Sam, Jun 5, 2008
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  6. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    Sorry Sam. Got it backwards. 120K for 60K in comp. My bad.
     
  7. Sam
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    Sam Founder Administrator

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    No biggie...I thought I was missing the boat...
     
    Sam, Jun 5, 2008
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  8. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    Be nice if you could find it...
     
  9. Sam
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    Sam Founder Administrator

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    No joke... i would pounce on that in a second!
     
    Sam, Jun 5, 2008
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  10. itsagreatday
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    itsagreatday New Member

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    This is where my fil's financial backing possibly comes in. He and/or my mil can be the secretary so to speak/be in the office when my hubby is out, my fil is also entertaining the idea of getting his license as well, he has been retired for 3 yrs and needs to do something, he's bored. He's done sales before, so that is nothing new to him.

    The 55k will work, will need to build it up though eventually. Is this a reasonable income number for a typical agent? My college friend's hubby made at one point 150k, not sure if that is considered an excellent figure. Wouldn't put it past the guy to be lying about it though. He wasn't very nice and he really thought highly of himself.

    Anyhow, thanks again for the excellent insight. I appreciate you responding so courteously to me.
     
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