Farmers Agents is it time to Go Independent?

[Championpatriot]

To ask a question on direction. I am currently a 100% 1099 IC contracted agent with an exclusive principal for an insurance company.

I am ready to make advancements for myself, I do not plan on attempting to BOR any of the business I have written over my many years, however there are so many options it is hard to pinpoint the one that fits the best for me. Really this comes with such a loaded answer I will try to narrow my scope of question..

I want to work with an organization that has a robust client servicing system in place, preferably also a good tech package where I can manage my leads and comparable raters etc. I am willing to invest my self of course and also financially for a wise choice...

I want an organization that services the clients I bring on pro-actively. Specifically because this is where it all went wrong with the agency I contracted with, in the beginning there was little to service so you hit the pavement and grow, then you hit that plateau where you need to service existing business effectively and also grow at the same time. Preferably at this stage you invest in the resources to do this. The agency did not do this and ever since it has been a battle of saving/or servicing policies and prospecting enough to quote and bind new policies. And when the company you represent is having rate issues this is daunting on both the new business and servicing side.

Any thoughts?

 

[rc-soda]

To ask a question on direction. I am currently a 100% 1099 IC contracted agent with an exclusive principal for an insurance company.

I am ready to make advancements for myself, I do not plan on attempting to BOR any of the business I have written over my many years, however there are so many options it is hard to pinpoint the one that fits the best for me. Really this comes with such a loaded answer I will try to narrow my scope of question..

I want to work with an organization that has a robust client servicing system in place, preferably also a good tech package where I can manage my leads and comparable raters etc. I am willing to invest my self of course and also financially for a wise choice...

I want an organization that services the clients I bring on pro-actively. Specifically because this is where it all went wrong with the agency I contracted with, in the beginning there was little to service so you hit the pavement and grow, then you hit that plateau where you need to service existing business effectively and also grow at the same time. Preferably at this stage you invest in the resources to do this. The agency did not do this and ever since it has been a battle of saving/or servicing policies and prospecting enough to quote and bind new policies. And when the company you represent is having rate issues this is daunting on both the new business and servicing side.

Any thoughts?

I'm a bit confused as to your setup. If you are a 1099, Independent, then YOU are responsible for creating the atmosphere that you are looking for. Otherwise, you would be a W-2 at, say, Marsh or somewhere alike. It sounds like you may be looking more for a W2 roll? Unless I'm totally missing your question.

 

[Warrior]

I too am missing your question. Your all over the place.
If your a captive agent: = I9 filing. Your not independent, but under contract

If your Independent: Self employed tax applies. By as an independent, you have to get appointments to write insurance with many companies. They will not give you access to them unless you show as an independent you are making over $500,000 in sales. You would be forced to sign up with an aggrigator too get you the appointments you want. But that will cost you $$$$ monthly from your commissions to pay for those MIAA type of aggrigators. Don't go with Smart Choice as they have too many problems getting you accurate numbers and they control everything to include managing your client. You never allowed to talk to the insurance company yourself. They have a middle man at Smart Choice that does that and clients get angry if you can't get back to them in a day or two.

Going 100% Independent takes money, time and lots of hussel.

 

[coaching4impact]

Farmers sucked in Maryland BEFORE any changes! I tried to sell them for about 6 months and they were not competitive AT ALL!

 

[Warrior]

Yep. I was doing ok for a couple years. ....only because I sold to my family and friends. Farmers trained us to sell to wealthy people so that way, those who can afford the policies won't complain about the high prices.

Farmers wants to be the elite company like State Farm. Unfortunately like State Farm, the higher you go, eventually you will fall. When you want to corner the market to only the 20% of the population and ignore the 80%, you will find that you run out of clients to sell to.

Simple economics. Sell products that offer something for everyone and your company will thrive.

Independent is the only way to go.

 

[marindependent]

Sorry Farmers Agents. Id consider all of your options out there.

There are some really great clusters available out there, check them all out.

Read the contracts and ask lots of questions.

 

[Northeast Agent]

What's the deal with Farmer's cold calling agents to see if they want to become an "agency-owner?"

I'm not P&C licensed, just L&H. A very pleasant gentleman cold-called this morning about this. I politely said I wasn't interested, but asked what if someone just wanted to become an agent first before deciding if they wanted to own an agency? He said he could put me in touch with someone else in the territory, promised to email me something and I'm still waiting on it.

 

[shawnhersh]

As you consider your the next chapter of your insurance career please consider the life and liberation of an Independent agent. I offer myself as an unbiased resource to help you make the best choice for you and your family. Your next choice is a HUGE choice and too many make rushed, uninformed decisions.

There are options out there for you. Consider them all.

I am not a Farmers agent, but have been considering an independent career after being captive for some time. What is the major difference between independent and owning the agency? Is there a huge advantage other than financial?

 

[Markthebroker]

I am not a Farmers agent, but have been considering an independent career after being captive for some time. What is the major difference between independent and owning the agency? Is there a huge advantage other than financial?

Advantages other than financial?

The risk is higher, along with the possible payout. As indi producer you just have to worry about selling, as agency owner you have to worry about other things as well, so the potential to fail is much higher.

The other advantage is you are more likely to have a stroke or heart attack and go gray faster.

 

[BADTROUT]

There are many options available out there to an agent looking to go independent. There are also many pitfalls. Knowing what's going on with Farmers specifically makes me think this topic is only going to gain more traction. Do your homework, and read the contracts meticulously. Where there is a will, there is a way... As for there being more or less risk as an independent, I would just tell any prospective future indy agents this... You will appreciate the ability far more to control your destiny than allow it to be controlled for you. You still have rules, you still have many mouths to feed, but with a truly good fit for a partner, you can and will achieve success... Just read the contracts carefully, understand your limitations and freedoms, and you will do just fine! To date, I've never met, nor worked with a former Farmers agent that regretted going indy!