COP Goes FARMERS ! What Say You?
- Thread starter dgarzoli
- Start date
- 15,041
Good luck! 
One thing I saw where you might want to be careful. Just as you are getting a legal opinion about using deputy coroner on your cards, be careful not to cross the line with your flyers. I understand California has some strict regulations, and you want to make sure everyone understands that you, the insurance agent, is leaving them and not you, the cop. Getting it wrong could easily invite some winnable lawsuits against you, Farmers, and your police force.
Additionally, make them too harsh or scary, and you're more likely to scare away business than attract it. A competitor might end up the biggest beneficiary of your advertising then.
Also, your friend is right about that many policies bringing in a good income, dependent upon your expenses: rent, employees, marketing, supplies, etc. But, are there at least 200 agents working this market? After all, you have at least 13 other Farmers' agents to compete against, your other bud, Geico, Progressive, etc. What makes you think you'll automatically get that portion of the policy count, the fact that you showed up with a pulse and an office?
I'm not trying to discourage you, I just want you to realize that mere time will not bring you 1200 policies. You're going to have to work for it, show them why you should be their agent and why they should stick with you when their rates get jacked through the roof. And do realize, being captive there will be times when you are uncompetitive on your rates, what are you going to do to keep that customer or bring in a new one?
Finally, why Farmers? I've seen Farmers bashed beyond belief on this forum and elsewhere on the Internet. Is it simply because your friend works for them, or have you had a good experience with Farmers? Maybe there is a reason that your warm market doesn't use Farmers, beyond lazy agents. If you have a positive experience with Farmers as a customer or injured that you can share with potential customers it can go a long way.
One thing I saw where you might want to be careful. Just as you are getting a legal opinion about using deputy coroner on your cards, be careful not to cross the line with your flyers. I understand California has some strict regulations, and you want to make sure everyone understands that you, the insurance agent, is leaving them and not you, the cop. Getting it wrong could easily invite some winnable lawsuits against you, Farmers, and your police force.
Additionally, make them too harsh or scary, and you're more likely to scare away business than attract it. A competitor might end up the biggest beneficiary of your advertising then.
Also, your friend is right about that many policies bringing in a good income, dependent upon your expenses: rent, employees, marketing, supplies, etc. But, are there at least 200 agents working this market? After all, you have at least 13 other Farmers' agents to compete against, your other bud, Geico, Progressive, etc. What makes you think you'll automatically get that portion of the policy count, the fact that you showed up with a pulse and an office?
I'm not trying to discourage you, I just want you to realize that mere time will not bring you 1200 policies. You're going to have to work for it, show them why you should be their agent and why they should stick with you when their rates get jacked through the roof. And do realize, being captive there will be times when you are uncompetitive on your rates, what are you going to do to keep that customer or bring in a new one?
Finally, why Farmers? I've seen Farmers bashed beyond belief on this forum and elsewhere on the Internet. Is it simply because your friend works for them, or have you had a good experience with Farmers? Maybe there is a reason that your warm market doesn't use Farmers, beyond lazy agents. If you have a positive experience with Farmers as a customer or injured that you can share with potential customers it can go a long way.
Having been self employed for the last six years and having just got into the insurance business in the last six months maybe I can give you some things to think about.
It took me three months to see my first check.
If you are willing to call all of your friends, family and contacts then that will be of help to you. I got started captive and I didn't see too many successful at it. Out of 200 contacts I think I got 7 life applications.
You said you need to make $4500 take home to make it. In my opinion you better have a back up plan for that one. If you can get the 500 cases at farmers that should amount to something. If you want to be a business owner, the one area of concern that you should pay the most attention to is the numbers. Your career could be very short lived if you run out of money in your first three to six months.
Most people on this board will tell you that $30k is a realistic first year number. You said yourself you need $4500 take home. That is approximately $67k gross. Where is the additional $37k coming from that you will need to get through year one?
It will be a hard pill to swallow not getting a regular paycheck. You better be prepared to suck it up and NOT be able to pay your bills on time if you don't have money put away for this. I know this sounds harsh but I've been through it. Luckily I had some money to get me through the transition this time. Last time I did not and it was NOT fun.
Also, DO NOT forget to account for the cost of medical insurance. I am middle aged and a family of three I pay on average $7500 per year.
I have to go to a birthday party now. I'll check back later.
It took me three months to see my first check.
If you are willing to call all of your friends, family and contacts then that will be of help to you. I got started captive and I didn't see too many successful at it. Out of 200 contacts I think I got 7 life applications.
You said you need to make $4500 take home to make it. In my opinion you better have a back up plan for that one. If you can get the 500 cases at farmers that should amount to something. If you want to be a business owner, the one area of concern that you should pay the most attention to is the numbers. Your career could be very short lived if you run out of money in your first three to six months.
Most people on this board will tell you that $30k is a realistic first year number. You said yourself you need $4500 take home. That is approximately $67k gross. Where is the additional $37k coming from that you will need to get through year one?
It will be a hard pill to swallow not getting a regular paycheck. You better be prepared to suck it up and NOT be able to pay your bills on time if you don't have money put away for this. I know this sounds harsh but I've been through it. Luckily I had some money to get me through the transition this time. Last time I did not and it was NOT fun.
Also, DO NOT forget to account for the cost of medical insurance. I am middle aged and a family of three I pay on average $7500 per year.
I have to go to a birthday party now. I'll check back later.
shaedzs
Expert
- 31
Congratulations on starting the new career. From your post I can tell you are sincere and have done your homework well. If you are willing to go door to door, which almost no insurance person has the guts for, I think you have what it takes to pull through. In regards to the deputy coroner idea, I would leave that out personally. Go career ASAP and angle as much as possible for the 500 policies. Those 500 could save you two-three years of ramp up time, or put another way, two-three years of extremely stressful times. If you do angle for the 500 policies, also angle in to get the agents phone number. This is very important because you will be picking up the marketing residuals that agent has accumulated over his/her career. The phone number is almost as important as the 500 policies. In either event, get ready for the long haul. It will take a few years to start drawing any meaningful salary, so you will need to maintain another source of income and/or have a fair amount in savings. Best of luck!
- Thread starter
- #5
Maybe I was not clear enough on my OP. I'm not quitting my cop job unless and until and I am successful in insurance. I plant to work the insurance biz on my 4 days off and in the evenings AND using every positive contact I have a cop as a future lead.
My current paycheck averages $3800 if I work no overtime and depending on the pay period could be as low as $3400. My next check however due to having OT should be close to $6K. I am able to pick and choose when I want the OT and when I don't, if I need some extra cash for marketing stuff, I trade an insurance day for a day of OT. That's my plan anyway. Im looking at it like this.......my son and I have dumped a ton of money into racing motocross since he was 7, and never made a cent doing it. He's 16 now, got his own job & car so rarely ride anymore. If I spent the same money I wasted on MX all those years on getting my insurance thing going, that should help offset the operating costs and once I start getting th subsidy that should make it even better.
I have full family medical etc through my cop job and into retirement, but if I were to jump ship sooner then the family medical will continue to get provided via my wifes govt job.
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You have no idea how right you are and that will be thoroughly vetted prior to any inclusion in my marketing material.
Great advice thanks.
Anyone reading this board knows that no new insurance agent gets anything automatically. I am going to have to work for it just like all of you did.
By cracky I think you are trying to discourage me!
I'm going to keep them by being the best agent I can, frequent contacts, birthday cards, pull their trash can in for them at nite while I'm patrolling their neighborhood if they forget and leave it by the curb.........that sort of stuff.First off I have been an forum junky for years across many different topics AND if you add to that these forums are found the internet that automatically makes everything you see and read on an internet forum 95% BS. So I take the Farmers bashing ( or bashing of any other company ) with a grain of salt until I have direct experience with them.
I have in fact had a great experience with Farmers as a customer for the past two years prior to even considering being an insurance agent at all. My wife hit a deer wrecking the front end of her car; was fixed quickly & without a hitch, (which is a good thing cause I already have a hitch on my truck); and I've used their helppoint roadside assistance on two occasions with great service. So at this point I'm a believer in their products and services yes.
Anyway.......
In have to finish up this post because as I lay here on the living room floor my Playboy playmate girlfriend is rubbing hot oil on my totally ripped abs, then were headed to mansion for mimosa's with Hef.
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By the numbers..... (and these are very general, but will give you some idea of what you are looking at)
$4500 take home is probably about $5500 in actual commissions. Talk to a few agents, there are a few things you need to realize that are spent before you see it, such as a monthly portion of your E&O coverage, and then with captive, you have the traditional other expenses that come out (corporate coop marketing, stationary, whatever). Oh yeah, you have to pay taxes as well, so add another 20% on top for starters. That means you are looking at around $7K a month in commissions to meet your goal. This is very doable, just want to be realistic. Of course, you'll also need to add in some advertising expenses / office expenses, car expenses, phone expenses, but lets stick with the $7K for now.
$7K a month $84K a year = about 800-850 policies on the books. You might think that you are off to a good start with 500 being 'gifted' to you, but you need to make sure these pay full commission, they probably pay 1/2, at least for a while. You'll need to count those as 250 of the 850 you need.
Of course, they won't give you those policies if you are not working full time, so you'll have to hire someone to answer the phones and deal with the service on those policies. This is actually great, because it's enough to pay that help. You will then have someone who is in the office 5 days a week 6 to 8 hours a day, so you can take care of your other business, and the help can deal with the mortgage companies and finance companies and people who need to make payments.
If it was me, having done this for a while, I would look at the possible policy gift as a way to hire the help, then realize it will take a bit of time to get you up to the policy level you need to be at.
Without the policy transfer and not able to hire the help, you'll have to make a decision. P&C doesn't work well for a part time office (notice I didn't say anything about a part time agent).
By the way, in normal California households, $7K a month is 35-40 new house policies every month. Pretty managable, especially if you have office help. It's even less if you write their autos along with the house.
Dan
$4500 take home is probably about $5500 in actual commissions. Talk to a few agents, there are a few things you need to realize that are spent before you see it, such as a monthly portion of your E&O coverage, and then with captive, you have the traditional other expenses that come out (corporate coop marketing, stationary, whatever). Oh yeah, you have to pay taxes as well, so add another 20% on top for starters. That means you are looking at around $7K a month in commissions to meet your goal. This is very doable, just want to be realistic. Of course, you'll also need to add in some advertising expenses / office expenses, car expenses, phone expenses, but lets stick with the $7K for now.
$7K a month $84K a year = about 800-850 policies on the books. You might think that you are off to a good start with 500 being 'gifted' to you, but you need to make sure these pay full commission, they probably pay 1/2, at least for a while. You'll need to count those as 250 of the 850 you need.
Of course, they won't give you those policies if you are not working full time, so you'll have to hire someone to answer the phones and deal with the service on those policies. This is actually great, because it's enough to pay that help. You will then have someone who is in the office 5 days a week 6 to 8 hours a day, so you can take care of your other business, and the help can deal with the mortgage companies and finance companies and people who need to make payments.
If it was me, having done this for a while, I would look at the possible policy gift as a way to hire the help, then realize it will take a bit of time to get you up to the policy level you need to be at.
Without the policy transfer and not able to hire the help, you'll have to make a decision. P&C doesn't work well for a part time office (notice I didn't say anything about a part time agent).
By the way, in normal California households, $7K a month is 35-40 new house policies every month. Pretty managable, especially if you have office help. It's even less if you write their autos along with the house.
Dan
- Thread starter
- #7
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