Considering Opening a Farmers Agency

[agentinsouth]

I don't think I have the experience to go independent. I'm meeting with Nationwide next week to discuss their training program. I would also be interested in talking to an independent to discuss the possibility of working for them, developing my own book, and being able to take the book with me with conditions. How would I go about finding independents in my area of Birmingham, AL?

If experience is the issue-if it was me, oh wait it was me, I would tuck away your cash and go work for Liberty Mutual for one year( I stayed longer)... They have benefits, a base and very little out-of-pocket cost. After that I would open up my own agency. Then you have experience and $.... Most people do not have both and that's what you need.

 

[cgreene]

I am an Independant in Birmingham al

 

[BigSteve]

If experience is the issue-if it was me, oh wait it was me, I would tuck away your cash and go work for Liberty Mutual for one year( I stayed longer)... They have benefits, a base and very little out-of-pocket cost. After that I would open up my own agency. Then you have experience and $.... Most people do not have both and that's what you need.

Isn't Liberty Mutual firing all of their agents?

 

[cgreene]

No just service reps actually hiring like crazy.

 

[thecommercialguy]

I agree with all those advocating for Indy above.

Hayato
closingcommercial dot com

 

[INSUREDUDE88]

I was a Farmers captive for 20 years and went independent in 2010 and that was the best decision I ever made. You could easily blow through your capital with Farmers and not own your book; Farmers does. They would pay you 'contract value' if you left after a few years but the value of your book is only worth about 1x annual commission vs 2x + on the independent side and you have CONTROL over your business.

There are plenty of resources out there to start an IA of your own, but the best way to do it is find yourself another IA to mentor you or work for that IA as a producer to learn the ropes and you can still own your book depending on the contract and you would have the service and sales support, client management system.

Keep asking questions and doing your research; you will soon find that IA is the ONLY way to go. I agree with previous posts; Farmers should be at the bottom of your options. Their products don't compete price wise with the IA side of the business. All captives struggle.

Good luck.

 

[Samlc25]

So I am starting to question my decision with Farmers. My DM is all over the place with answers and generally inept.

I am interested in becoming an IA but need the upfront support such as training, startup list, marketing assistance, etc.

What direction should I go? Cluster?

 

[xrac]

You are now questioning your Farmers decision when everyone was advising otherwise???????!

 

[Derrick]

So I am starting to question my decision with Farmers. My DM is all over the place with answers and generally inept.

I am interested in becoming an IA but need the upfront support such as training, startup list, marketing assistance, etc.

What direction should I go? Cluster?

From my experience in the captive agency management system, is that manager's #1 goal is to get their agents to get as many sales as possible. It's not that their inept, but training you is simply at the bottom of their list where sales is at the top. You're gonna be their favorite agent when you're making sales, next week when you go a bit dry they could give a **** less about you. They are really just worried about the numbers they have to report to their regional manager, that's it! I've just had a really bad experience with captives and I feel like the top down salesly approach is... antiquated.

Training - what kind of training are we talking about? If it's calling, there are some great scripts out there, and also YouTube can be your best friend! Software - once you get your appointments, you'll have dedicated support lines to help you! Also, most mistakes can be fixed or worked on, and if it's worse than that, that's what E&O is for!

Startup lists / marketing support - I used to orphan accounts and I got my butt kicked. Cold calling or calling orphaned accounts ("prospects") seriously makes selling insurance so not fun IMO. The best way to "market" is completely - or mostly - FREE. Get to know your CPAs / mortgage lenders / etc. Reach out to friends and family. Join professional organizations like BNI or if you're young, something called "Young Professionals." As well as your Chamber of Commerce. Set up booths at charity runs, and give 25 cents to $1 to the afromentioned charity if they will allow you to quote their home / auto / business. Send out referral cards to existing customers. Use LinkedIn to reach out to business' for commercial and workers comp. After you build the trust on the P&C side, reach in to cross sell some life insurance. The list goes on...

THE most IMPORTANT thing is digging. If you're going to make the switch you have to really want it. When I first started on the independent side, I wasn't even able to get my grandpa and grandmas home / auto because they had been with their agent for 30 plus years. You really have to make those connections even if it doesn't start in a sale right away.

 

[Samlc25]

Thanks Derrick.

I've never owned an agency and my insurance experience involves a niche product. Due to this, I am looking for something that provides support and that's why I chose captive. However, recently I have begin to think I can get the support through IA and would like to know my options.