Farmer's Run to Daylight. Is This Achievable?

[mdy4788]

Hi, I am currently talking with a recruiter at Farmers.

I've read A LOT about how farmers can be bad, and a little about how it can be ok. A lot of the people who thought it was ok were in their first three years.

Currently I'm in upper store management for a retail chain. Work about 50hrs a week, shifts go back and forth from opening and closing constantly with no consistency through out the week and days off are never consecutive. I make about 35K a year.

I'm wondering what just the first three years of farmers could maybe do for me. Not long term.

Of course I would have licensing, testing, study materials, all of that. About $500.

I'd make 10% commission, and have a subsidy program. If I made the below numbers, I would not be required to pay back the subsidy.

MONTHS P&c Life
6 months 150 13
12 Months 300 25
18 Months 450 38
24 Months 600 50
30 Months 750 63
36 Months 900 75


I am a good salesman. Am I naive to think that these numbers aren't that bad? Could I potentially be making more money than I am now? Could I meet these numbers and be exempt from paying back subsidy?

I could see this as a step for now, and 3 years from now possibly move on to something else, or even a different company.

I could use some advice on how feasible these numbers are. I would hate to be stuck owing money to farmers. Sales area would be St. Louis, Mo. Seems to be one of their best performing districts.

Also I am single, so I don't have anyone to provide for with my money except myself.

Advice for someone who has never been in the insurance game would be appreciated

 

[Norwayguy]

Have you run a Farmers quote on yourself. The biggest problem with being a Captive P&C agent is you live and die by the rates set by the company. If you think Farmers is right for you then it should be your insurance carrier.

 

[djs]

I assume these are active policies, not just policies written and later lapsed.

The numbers are achievable if the rates in your area are decent. They don't have to be the cheapest thing going, but they can't be out of the water either.

Figure out who you know, basically the target market you would be able to market to for the first year, run some sample quotes with the DM that is working with you and see if the rates are decent. If possible, compare these to the rates people are currently paying. If it's more than 10% above what they are currently paying, you will be in trouble long term.

You can't take any one quote as a good sample though. Its funny, you cross the street and all the sudden, the rates change for everyone. You need to look at it as a whole with many quotes.

The production is aggressive, but managable. Heck, you can probably write a few hundred renters policies with your eyes closed, but this won't mean you will make any money.

To me, the life numbers are crazy, but then I don't care to write a lot of life, to much work, not enough money, unless its a perm policy, then it takes some real selling.

Dan

 

[DiegoInsGuy]

Those are hard #'s to hit unless you have multiple sources for lead generation. Trying to reach those goals and learn the insurance business at the same time is nearly impossible. 150 P/C policies in 6 months or 180 days... thats almost a policy written everyday. Like I said very difficult without marketing money and experience.

Here in CA you have to sell 40 P/C and 4 life polcies first and then you can begin to recieve the subsidy from Farmers this was the case last year when I looked into the opportunity again. Not sure if it is the same where you are. If it is, or something similar attaining those 40 policies and 4 Life policies will give you an idea as to how difficult this business is to start up and will make you think before agreeing to accept the subsidy.

I am independent with pretty much any carrier that is available in CA and it's not easy getting things started. I couldn't imagine only having 1 carrier to go to.

I started in personal lines with Farmers and didn't do so well I was 29 years old and didn't know a thing about insurance. I was offered a position at an independent agency as an employee had was there 3 years learning the business. I switched to another Independent agency here recently where I now have ownership of my book of business. It has been a great ride and I look forward to the opportunities that this business brings to the table.

My advice to most that are considering getting into this business is to find an independent agency that will give you a salary and learn the business before you start out on your own, their is more to learn than what most think.

You will continue to learn even after you start your own business, but you don't want to start green (unless you have money to burn) and have the added pressure of generating your own leads.

Hope that helps a bit.

Hi, I am currently talking with a recruiter at Farmers.

I've read A LOT about how farmers can be bad, and a little about how it can be ok. A lot of the people who thought it was ok were in their first three years.

Currently I'm in upper store management for a retail chain. Work about 50hrs a week, shifts go back and forth from opening and closing constantly with no consistency through out the week and days off are never consecutive. I make about 35K a year.

I'm wondering what just the first three years of farmers could maybe do for me. Not long term.

Of course I would have licensing, testing, study materials, all of that. About $500.

I'd make 10% commission, and have a subsidy program. If I made the below numbers, I would not be required to pay back the subsidy.

MONTHS P&c Life
6 months 150 13
12 Months 300 25
18 Months 450 38
24 Months 600 50
30 Months 750 63
36 Months 900 75


I am a good salesman. Am I naive to think that these numbers aren't that bad? Could I potentially be making more money than I am now? Could I meet these numbers and be exempt from paying back subsidy?

I could see this as a could step for now, and 3 years from now possibly move on to something else, or even a different company.

I could use some advice on how feasible these numbers are. I would hate to be stuck owing money to farmers. Sales area would be St. Louis, Mo. Seems to be one of their best performing districts.

Also I am single, so I don't have anyone to provide for with my money except myself.

Advice for someone who has never been in the insurance game would be appreciated

 

[moonlightandmargaritas]

I could use some advice on how feasible these numbers are.

P&C is a demand product (people have to buy it). If you have competitive rates, probably OK. Life insurance is not a demand product. Why do you think you can sell it?

 

[Wallin06]

I sell an average of 25 to 30 WL policys a month and only work 2 days a week if you can sell then it is within range just takes alot of hard work

 

[Insurinator]

I sell an average of 25 to 30 WL policys a month and only work 2 days a week if you can sell then it is within range just takes alot of hard work

25-30 WL policies a month, huh? You must be the world's greatest salesman!! Maybe you live in a ritzy neighborhood, where all families are 35 or younger with 3 kids and just DYING(no pun intended) to buy life insurance?? 2 days a week? President of MDRT??? You MUST share your secrets with us.

The Cubs are going to win the World Series this year too......

 

[djs]

I sell an average of 25 to 30 WL policys a month and only work 2 days a week if you can sell then it is within range just takes alot of hard work

2 days a week is a lot of hard work?

I assume you are kidding, or do you have a lot of producers doing the actual work for you?

 

[Biggin]

2 days a week is a lot of hard work?

I assume you are kidding, or do you have a lot of producers doing the actual work for you?

My guess is that he's selling FE and you can achieve those numbers in 2 days a week if:

1. You work harder in those 2 days than most do in a week. Probably 7-10 appointments per day.
2. You work in a "fertile" area for FE. There are just some areas of the country that are much tougher than others.
3. This probably should have been number 1. You have a steady flow of leads to blast through every week.

Simple. Not easy.

BTW.... the math runs like this:

14 appointments per week = 7 sales x 4.3 = 30.1 sales.