Checking in to Learn

[Chevarian113]

Hmmm. Question to you all... If I become and agent, do I really have to start playing golf?


Kidding of course.

 

[zoopie]

I've been independent for less than a year after being a captive agent for 7 years. Best move I ever made, but you better have a wad of cash because start up costs can be steep. Not to mention limited income for awhile.

It was scary giving up that renewal commission and in essence, "starting over." I had a non-compete clause in my contract with the captive co, so I have to wait 12 months before I can directly solicit my former clients. However, that hasn't stopped them from seeking me out. I was able to keep my same phone number, so that's been sweet.

I do have kids, 3 of them, and I wouldn't trade them for the world. I even have them with me in my office 2 days a week while my wife works. Thank God she pulls in full-time income in just 2 days a week (long days though). That's allowed me to get up & running.

I can say this...premium-wise, at the end of my first year being independent, I will be close to 42% of what it took me 7 years to build being captive.

 

[Chevarian113]

I can say this...premium-wise, at the end of my first year being independent, I will be close to 42% of what it took me 7 years to build being captive.

That's incredible. May I ask what company you were captive with? What pros and cons do you see between the two agency set-ups? The more I learn about this, the more independent screams my name, even with the risks and hard work.

I am simply drawing a (low) salary plus a (medium) commission scale right now from an agent, and I make it just fine. Luckily, my overhead is low enough that I'd be just fine raking in only 30k the first year. That residual is the thing I look forward to. I truly understand the work that comes with it all, as I've helped 2 brand new captives start their offices (of course with an existing book gifted).

 

[Frank Stastny]

Welcome.

Get a cold six pack, a bag of popcorn and pull up a comfortable chair. It can get very "entertaining" here.

Don't be afraid to take a chance.

"Life is should not be a journey to the grave with the intention of arriving safely in an attractive, well preserved body but rather to skid in sideways, cigar in one hand, a bottle of brandy in the other, totally worn out and screaming woo hoo, what a ride".

 

[zoopie]

That's incredible. May I ask what company you were captive with? What pros and cons do you see between the two agency set-ups? The more I learn about this, the more independent screams my name, even with the risks and hard work.

I was with American Family. To put things in perspective, my last 2 years there were pretty stagnant. Severe rate increases on the property side really brought growth to a screaching hault on the P&C side.

Commerical was always tough to write anyway because I was always running into the independent agents.

I tried to make up for it by writing more life, but for me, that's always been a tough sell.

Captive companies, usually, offer good support getting started (nominal salary thay may or may not need to be paid back), plus commissions; they typically own all the equipement, hardware, etc; better name/brand recognition; the possibility of getting a book of business (didn't happen for me). But there are usually strict quotas to meet just to keep your job or earn bonuses; most push life sales really hard; marketing compliance always seems to be an issue; no product flexibility; lower commissions for both new business & renewals; way too many company meetings.

On the independent side you are free to set up your office & equipement however you want. Granted, you have to buy it, but I would rather have the flexibility instead of waiting in line until it's my turn to get my already out-dated computer upgraded to a less-outdated model; no quotas; options of dealing with several different companies instead of just one; higher commissions; more bonus opportunities (right now I have 4 companies offering cash/trip incentives for what I'm already doing!); no meetings (more time spent selling); did I say higher commissions already? Get this, with AmFam the most we could earn on a life policy was 55%, but now I have the opportunity to earn 120% with one company, with most others being in the 80-95% range. Crazy! Now I'm not only able to write P&C, but also more life, health and commercial. Plus, as independent, you feel more like an insurance advisor rather than a pushy salesperson.

Really, about the only downside is you need $$ to make it all happen. For me, giving up the renewals was tough, but I knew I would be able to make them back in a much shorter period of time. Thankfully, my wife earns good $$, too! And it can be a steep learning curve depending on how many companies you deal with. But like anything, the more you do it, the easier it becomes.

 

[FEX Quotes]

Welcome to the forum. I think you'll find this to be a very useful and friendly place to hang out..

 

[arnguy]

Hmmm. Question to you all... If I become and agent, do I really have to start playing golf?


Kidding of course.

Just keep in mind that "man who plays golf, putz!"

 

[Chevarian113]

"Life is should not be a journey to the grave with the intention of arriving safely in an attractive, well preserved body but rather to skid in sideways, cigar in one hand, a bottle of brandy in the other, totally worn out and screaming woo hoo, what a ride".

This is one of my favorite quotes. Always has been.

 

[Braxtonut]

I do know that some FMOs spend hundreds of thousands of dollars on "marketing expenses/golf" every year. So yes expect to be asked to golf in the senior field as least.

 

[arnguy]

....."Life is should not be a journey to the grave with the intention of arriving safely in an attractive, well preserved body but rather to skid in sideways, cigar in one hand, a bottle of brandy in the other, totally worn out and screaming woo hoo, what a ride".

OK, Frank, whom are you quoting?