Good Idea?

[XECLUDED]

Greetings,

My brother has been a StateFarm agency for a couple years now, and been doing pretty good - getting the required goal from SF and get that free $11K money every months.

I am thinking about starting an independent insurance agency right next door to him to get those customers who my brother could not sell. I basically get free advertising being next door to an insurance company and will get those customers who want inexpensive premiums for their homes/autos, etc... Good, bad ideas???

If I chose to do that, how do I go about doing that in Houston, TX. Thanks in advance for any suggestion.

 

[xrac]

Maybe a good idea. Will it create any issues for your brother?

 

[Bob Klee]

I know a few SF & Allstate agents that have done this with their spouses too.

Biggest issue is for your brother, not you. SF nor Allstate like this arrangement. They have rules about referring business to others. So to me, if he's good with it, then a no brainer for you. SF can't fire you.

As far as getting appointed with an IA. No experience but lots of folks here do so I'll let them chime in on that.

IMO, most of your referrals will be because SF does not write the business, not because you'll be the low cost leader. Too many claims, ticket's and/or accidents. Also you'd likely have a nice commercial niche too. There are lots of markets that SF does not write.

 

[alwaysinsured]

I guess it depends on the flexibility of your brother and how slick he is with referring people to you. There shouldn't be any major issues that you wouldn't have with any business. Good luck to you. Let us know what kind of results you get!

 

[XECLUDED]

After a lot of research, I think I will get my brother in trouble if I do this. Thanks everyone for your inputs.

 

[xrac]

After a lot of research, I think I will get my brother in trouble if I do this. Thanks everyone for your inputs.

I think your brother would get a lot of grief.

 

[Bob Klee]

XECLUDED,

While I didn't think it would work if you were next door, there is nothing wrong with across town, different zip, etc., for setting up shop.

Mtge brokers have the same problem giving just one referral for insurance. My solution: make my business card a "tear off" type so when the broker hands out 3 cards for insurance, yours stands out. Or he can say: these are cards to 2-3 good agents I know. It will be obvious if you all have the same last name. But I do know that "they" have used shoppers to see if an agent just refers to family. That is why I said SF & Allstate would have problems & the risk was your brothers, not yours.

It can be done but you two just need to be smart in how you do it.
Don't give up on your dream if you truly believe you would like a career as an insurance professional!

 

[funeraltam]

I think it is also maybe good idea.

 

[XECLUDED]

XECLUDED,


It can be done but you two just need to be smart in how you do it.
Don't give up on your dream if you truly believe you would like a career as an insurance professional!

Thank you very much for your suggestion. Just need to be smart about it is right. If there is a will there is a way :-)

Thanks again.