Farmers' Retention Commission For Newbie

[usa-vn]

Hello everybody,

I am new to this forum & I am currently self-studying for the P & C. I am going to have a interview with one of an old Farmers agent. She promised to pay 5% retention commission if I can bring in Leads while I am studying for my P & C license. Once, I get the license, then I get 10% retention commission. The agent also promised that If I can get 300 Autos, then I get to work for her for $2500 + 10% Comm. from my book.

Well, I am very excited with the opportunity's promised.

I would appreciate your advise regarding what to say to her & what question should I bring to her in the interview tomorrow.

Thanks.

 

[djs]

Ask her what a lead is defined as. Then hand her the standard insurance agents lead list.... the phone book.

Okay, that might not go over so well.

Seriously, realize that 300 autos, unless you have a marketing budget, isn't easy. You might get to 100 autos with people you know. You could get to 200 with people you know and people they know. 300 requires entering a sales career. Not impossible, not even really hard, but it does require figuring out how to attract business.

So first question is:
- How do the rates compare with the competition. In my area in California, Farmers rates are the same as everyone else. You would not get a lot of people jumping for rate betterment. The only way you get competitive rates is if you have home and auto together (same for State Farm and AAA in my area, Allstate has solid auto rates).
- How many new auto policies a month is the agency currently writing? This will tell you a lot. She probably won't answer directly, but get a sense of which is more, homeowners or autos. Traditionally, an agency should write 2 autos for every home it writes, though some agents just prefer focusing on homeowners. If it's not close to 2 to 1, there is a redflag that auto is either not a priority or rates are not competitive.
- Have her quote your autos for you. Make sure you understand the discounts that have been applied, that they are 'real' and that the rate is at least in the same ballpark as what you currently pay (assuming you are not with Farmers currently, if you are, run some quotes for yourself on Progressive and Geico and review them with her).
- Ask if you get 10% on homeowners as well.
- Find out if the commission is new business only or new and renewal.
- You will not own the business. Don't bother asking. Captive agents don't have this luxury. They don't own the business.

Dan

 

[usa-vn]

Dan,

Ask her what a lead is defined as.

Leads that closed the deal.

Then hand her the standard insurance agents lead list.... the phone book.

LOL. I love it

How do the rates compare with the competition. In my area in California, Farmers rates are the same as everyone else...

She had told me it is somewhat higher than state farm & state farm is the star around here (northern VA).

How many auto or home do I have to write?

No restriction, because she dont pay me if there is no deal.

After I get my license, 10% retention comm. is solid.

All points are taken.

Thanks.