Going Indy...start Up Costs?

[xrac]

Were you for Real? I started with $1,300 and kept rolling that over until I could do larger mailing and make more money....Why would someone need $3,000 to $5,000??? In final Expense sales...???

Everyone's costs of getting started is different. Having started two business from scratch I know a little something about what is involved. Here would be a potential cost of getting started. Is it realistic? Maybe or maybe not? At least it is food for thought:

Leads $1,000.00
E&O 500.00
Vehicle costs 500.00
Office Equipment 500.00
Postage 100.00
Telephone 300.00
Living Expenses 3,000.00

Total $5,000.00

 

[Sherd]

Well I took advances of Course, I don't know why any agent starting out who does not have at least six month's of their income in the bank would get paid as earned.

I have been doing the business for a while and I still take advances.

But if you are making the point that they need that to cover their home expenses I totally understand where you are coming from.

And I might even agree with you on that. But if they are taking advances and got some money and get some training they would be fine.

Thanks for the reply. I trying to go at this as earned from day one.
sherd

 

[InsuranceMGA]

Everyone's costs of getting started is different. Having started two business from scratch I know a little something about what is involved. Here would be a potential cost of getting started. Is it realistic? Maybe or maybe not? At least it is food for thought:

Leads $1,000.00
E&O 500.00
Vehicle costs 500.00
Office Equipment 500.00
Postage 100.00
Telephone 300.00
Living Expenses 3,000.00

Total $5,000.00

I get your point, E&O Yes but the rest of that can be played with in my opinion. We use cell phones and I would never pay $300 bucks for that!

Postage....to who??

Living Expenses....ok I will give you that, based on what I said earlier.....so your point is taken and well made....I get you...

 

[NCAgent]

I get your point, E&O Yes but the rest of that can be played with in my opinion. We use cell phones and I would never pay $300 bucks for that!

Postage....to who??

Living Expenses....ok I will give you that, based on what I said earlier.....so your point is taken and well made....I get you...

Some of it *can* be played with but to what extent?

Are you going to use your personal computer? Do you have a well-working laptop that you can bring with you?

Are you working from home or in an office setting? Either way, do you have the necessary supplies like a printer, paper, ink, pens and paper, and etc? Might not sound like much but it accumulates quickly. Are you going to be scanning documents in and need to get a nicer printer for it?

Gas is expensive, are you going to drive less?

Are you going to be tracking leads, clients, and drip market lists through excel spreadsheets or from something like "Your Insurance Office" (which I recommend by the way).

How are you going to be marketing?

By the way, a cell phone isn't bad BUT I'd recommend having a second business phone. Otherwise people will be calling your personal phone all the time even when you aren't trying to work. So keep that in mind.

 

[Tearmann]

Looks like I'll be leaving my captive agency this week. Been way to many distractions lately and my production is low. This is a personal choice but seems it has to come now rather than later.
I've lightly reasearched some of the FE companies like Equita, Securus and some others. If I were to choose this route, can someone give me an idea of what I need to get started? Not the price of buying leads, but things like what equiptment, E&O etc.
On Monday I will contact these companies and get more info so I can make a choice. But was hoping that some of you that have been indy (working from home) types could give me a little low down.
For what its worth.....I've been life and health licensed for 17yrs. Done well being captive. So I'm not a newbie but being independent is quite different.
I also got my med supp / ltc license this year but being captive I have to go thru my primary and he won't sign contracts to let me sell these products. I was hoping to cross sell some med supps after the FE policy.
Its a weekend right now, but I need to come up with a plan quickly as I don't intend to stay with this current company after this week.
Thanks for any help!
John

John there is a group that will help you get started with very low start up costs, good contracts and renewals, agent support, and back office tech to help keep you organized.

Although I will say even if you submit your contracts tomorrow for the carriers you need you're talking at least two weeks before you get a writing number. So unless you have a few weeks of cash stashed for personal needs plus say $600-$700 for startup which includes a couple of weeks for leads, i might not leave your current job at the end of the week.

PM me and we'll talk more.

 

[Whit]

I have not posted in a while (or much at all), but if you join the right group you should not have much start up cost at all.

I would find a group that is willing to work with you. Maybe by offering a lower commission scale in the beginning coupled with free leads, to create some postitive cash flow. Once you transition to purchasing them yourself have them bring your contract level up. Don't underestimate the business interruption that occurs when you make your move.

Also, I would not join a group if they didnt allow you to sample 5-10 leads for free.

 

[InsuranceMGA]

Some of it *can* be played with but to what extent?

Are you going to use your personal computer? Do you have a well-working laptop that you can bring with you?

Are you working from home or in an office setting? Either way, do you have the necessary supplies like a printer, paper, ink, pens and paper, and etc? Might not sound like much but it accumulates quickly. Are you going to be scanning documents in and need to get a nicer printer for it?

Gas is expensive, are you going to drive less?

Are you going to be tracking leads, clients, and drip market lists through excel spreadsheets or from something like "Your Insurance Office" (which I recommend by the way).

How are you going to be marketing?

By the way, a cell phone isn't bad BUT I'd recommend having a second business phone. Otherwise people will be calling your personal phone all the time even when you aren't trying to work. So keep that in mind.

I don't see what you are trying to imply here. First any person going into any business in america today who does not understand that they need a computer of some sort should hang it up.

If you are starting out in Final Expense and want to open and Office why? Learn the Business and make some money First. Work from your home. And All that stuff you just said about ink, paper etc...will never add up to $5,000

OMG if you are going into this business and don't know you have to buy gas I don't know what to tell you.... To be honest I think you are reading to much into this....If I would have waited to do what you listed here I might have been to afraid to even start.

And for the most part most people need to make money first and the rest of this will come with time. Shoot Excel spread sheets...if you have time to do all that at the start guess what you are not making money...you are sitting around dreaming about the money you could be making.

 

[NCnatwidagent]

I want to thank everyone for all of the good responses to my post. It has given me some very helpful info to help me make an educated decision.
To clarify my post a little.....right now I'm captive with a P&C company that sell life and financial products. I'm an independent contractor not an employee.
What I want to do is be able to work from home, not open an "office". From what I have read there are many of you out there that do just this. I don't mind going to peoples homes to present my product.
Basically, right now I only have a cell phone, no home phone. What kind of phone system does everyone use to make calls on?
Also, in submitting business, does a printer / scanner work? I'm assuming apps can be e-mailed or "faxed" this way?
I'm checking out E&O insurance as this will be important.
I'm in the process of checking on the places that might be a good fit that you all have sent me. Thanks!
I just would like a marketing organization that I know will give me support when I need it. Simple FE training for the indy agent, someone to call when underwriting questions come up etc. I don't want to feel completly alone. I know the life business but still need some support.
Thanks for helping,
John

 

[Whit]

Wherever you go I would recommend you request that they let you try out some of their leads at first, for free, as a show of good faith. For a large enough IMO the cost is nominal. Let me know if you would like any recommendations.

 

[The Gimp]

John, give me a call if you are still in need of assistance. Todd King and I work together. My number is 904-624-2438.