Considering Opening a Farmers Agency

[indienoise]

It's kind of a catch-22.
You'll probably get more support than you think out of your carriers. But given your lack of experience, you're not going to get any carriers in your corner. If all you've done is sell very specific, targeted products, then you probably need to go work for an IA for a little while before opening one.

Take my little anecdote, for example. I've been licensed 5 years, and spent 2 of those years operating a satellite location for a captive agent. I got all my own prospects, took on many of the costs I would have on my own, and had a good amount of success. So I opened my own IA in March.

Even so, all I could get were nonstandard carriers. I'm just now getting my first preferred carrier that's really talking to me, and it's a smaller carrier who needs new agents.

What I'm pointing out here is it's not simple, even with experience.

 

[Samlc25]

That's kind of what I was thinking too indienoise. Get some experience first. Thanks

 

[ARus]

That's kind of what I was thinking too indienoise. Get some experience first. Thanks

You sound as my friend: "I can't take this job, because they pay so little. I can't work, because I will have income and should pay back my student loan. I should work hard in case to be successful. I can't work hard anymore (60th) I don't know what to do? Help me!"

 

[GXR2]

It's my understanding if current clients are grandfathered into their rate it can't be changed, or very little. These people won't ever leave. However those people are getting old and will die before you retire. With Progressive and GEICO pressuring people to shop rate every 30 min. on TV, the climate has changed from 30 years ago. Your proposition isn't just "Agent" any more. You also need a competitive rate. Not being able to remarket your clients is a huge detriment to long term success in this business today.

That's just my .02 cents.

Oh.. P.S...
Progressive's song and dance routine is getting a bit old. Consumers are beginning to mentally tune it out. Much like a song you hear on the radio a hundred times. After a while you don't "hear it" when you listen. It just becomes noise. That will change as Progressive wises up.

I still believe an independent agency route is better.

 

[Early]

I've been a Farmers agent. I've been and still am independent. Night and day difference. IA is the way to go. Being independent give you the latitude to market different companies for your client. Being captive, just say your prayers cause you are at their mercy for everything.

As far a security goes, maybe look for an established IA in town that, after a described amount of time, will give you ownership. Then in 5 or 10 years strike out on your own if you're so inclined. At that time you'll have independence, experience and a book to support you and your family.