Getting Customers for the Agency + a Little Rant

[nekkid]

I am not officially hired by a State Farm agent, but she’s telling me to find prospects so that we’ll have customers when the agency opens. She said I should get their names, insurance company, and expiration date.

I feel pretty angry that I am not hired until I get my P&C license, which should be the end of the month. If I am “in”, she needs to train me about State Farm so I can market our products and pursue the license at the same time. I cannot go get customers without any knowledge. Plus, I can’t sell or advertise on behalf of the company if I am not an official employee.

Anyway, since she is the head of the agency, she will have advertisements in newspapers and such. As for me, what should I do to get customers? How did you get customers when your agency first opened? She mentioned about cold calling. Where should I look for potential customers to call?

A little more about my situation… (rant)

I was “hired” last week by Her. Suddenly a few days later, she called me to tell me the pre-licensing classes are no longer paid by State Farm. The period ended the week before I was hired. She tells me I need to invest my own money for the whole process of licensing if I want to continue. I decided to go ahead with it and will pay around $600 for everything (pre-licensing classes, fingerprinting, application, exam fee).

In the mean time, I will not be trained for anything else until I get my P&C license. I am not even sure if this means I’m guaranteed a job! The agency opens on April 1, and I am getting (I’m positive I will pass) my license on March 30. So, I’ll only have one day to prepare myself for the opening. How am I going to do that without any knowledge of what is the company and what it offers? It is very frustrating that she’s leaving me out in the open.

I hope I am not making a mistake by investing my time and money for this job. I’m looking for a job that will give me good experience. I’m a full-time student majoring in accounting at CSULB. My future job most likely will not involve insurance, but I am hoping this will look good on my resume and learn a lot from it. Do you guys think it’s worth it? Am I making a right decision?

 

[djs]

Hi Nekkid

You left a lot out of this, so I'm not sure what advice to give. April 1st is right around the corner, if you can wait, then it's not so bad.

You didn't mention how you are paid. If it's hourly, or primarily hourly, I would wait to start actual work (not including licensing) until I'm on the clock. If it's commission, or mostly commission, I'd start to get things lined up now.

I'd confirm with her that you are a 'go' once you have the license in hand. I would get this in writing if possible (even if it's just an email). This makes both parties feel more comfortable and committed. You are expending money, you deserve the clarity. Along with this, make sure you know what the pay is, how you are being paid, etc.

I'd also try to work out a deal that once you are there for a period of time, she'll reimburse you for your license.

Insurance experience in the accounting field is invaluable. It will help you far into the future.

Dan

 

[nekkid]

Thank you for your advices, Dan.

Since I have zero experience in insurance, my pay is $10/hr + commission. Commission is based on appointments.

 

[LGilmore]

Honestly, I think you should really look around. Something in your writing tells me you're a bad fit for this situation. I see you as "cannon fodder" for this agent. I don't think that is the normal "carreer school" set up for state farm.

Because are you becoming a "STATE FARM" agent or a "sub-agent or service person" for this agent?

Something's giving me very bad vibes about this situation. I hope I'm wrong, but honestly, I don't think I am.

 

[nekkid]

I have a bad feeling about this situation too. I am very close to backing out before it's too late.

She's training her team members next week, and I am not part of it because I am officially hired.

I will be her sub-agent.

 

[LGilmore]

"I will be her sub-agent."

I think if you are really interested in the business look into these carriers outright. Something just seems wrong. If she's training everyone else for the start and you aren't included, you probably aren't thought of as someone who will be there....later.

There are alot of great honest agents out there that can take an agent under their wing AND there are alot of agents out there that have a single purpose to do whatever, burn whomever they have to in order to make it. Be aware.

I wouldn't have gone into the situation you are. Your business is her business, when you're gone, it will be her book, not yours.

If you want to go into this business talk directly to the state farms, farmers, allstates, etc... for a job. At least that way, somebody there has an idea who you are and what you're doing. The way it sounds in your setup... nobody's really going to know.

Have you seen any kind of agent's contract?

 

[djs]

Actually, since you are in school, and I assume you want a regular paycheck, I'd recommend working for an agent, similar to what you have discussed.

Most P&C agents/offices will hire someone if they are a dedicated, hard working, outgoing personality type of person. The problem you are having is the agent is new, she's not sure which way is up just yet, probably a bit nervous about the expenditure, but also wanting to get started.

Going direct, becoming an agent yourself, is a definite possibility, but you need to know what your goals are. It's only worth doing this if this is something you want to do long term, which I didn't get the sense was ultimately your goal, though it might become one, you just don't know it yet.

Dan