Income Year 1 Expectations

[dengle1962]

I have been contacted by Farmers and am looking into the business of selling insurance-home and life to start off with and eventually move to securities. I don't currently have a job, but do have a source of income.

I was wondering in the first 3-6 months what can I expect my income to be from Farmers. I understand that it is based on commission and that I am expected to sell. How soon does the income actually start?

I am literally just a day or two into this and need a certain income to meet my expenses. I understand that later on the income levels can be very lucrative, depending upon me.

Lastly, should I start to tally my expenses at the beginning and what do you recommend that I collect data on.

Thanks for your assistance!

Don

 

[blue_wynd]

A simple expense and revenue can give you a good idea. Tally up all the operational expenses for your situation, eg. E & O insurance, office, phone, fax, ams, employees. Add whatever you want to have or need (like E&O). Now how much is Farmers paying you in commission? Ask them what is the average premium is in the area for Home, Auto, Business. You will then get a good idea of how many policies you need to sell to cover the operational expenses. I put Life separately since those are higher commission, but very low renewals. Not sure if Farmers offers renewals on Life sales.

The start up expenses varies, do you want new furniture? Computers? Phones? Basic office supplies Etc. I would budget around 6k for FFE (Fixtures, Furnitures and Equipment). Being captive, they might have their requirements for FFE or you might have to buy through them. So that can increase the budget. Two months rent (deposit and 1st month). Keep all the invoices and receipts. Need to add them for the tax write off later or if you get audited.

Does Farmers offer any start up help? Money to loan interest free while you are starting out? Why Farmers? If you haven't already, I would get a farmers quote for yourself and stack them up against the other carriers in your area. IF the price is too high, I would look for another carrier to represent.

 

[bboman23]

A simple expense and revenue can give you a good idea. Tally up all the operational expenses for your situation, eg. E & O insurance, office, phone, fax, ams, employees. Add whatever you want to have or need (like E&O). Now how much is Farmers paying you in commission? Ask them what is the average premium is in the area for Home, Auto, Business. You will then get a good idea of how many policies you need to sell to cover the operational expenses. I put Life separately since those are higher commission, but very low renewals. Not sure if Farmers offers renewals on Life sales.

The start up expenses varies, do you want new furniture? Computers? Phones? Basic office supplies Etc. I would budget around 6k for FFE (Fixtures, Furnitures and Equipment). Being captive, they might have their requirements for FFE or you might have to buy through them. So that can increase the budget. Two months rent (deposit and 1st month). Keep all the invoices and receipts. Need to add them for the tax write off later or if you get audited.

Does Farmers offer any start up help? Money to loan interest free while you are starting out? Why Farmers? If you haven't already, I would get a farmers quote for yourself and stack them up against the other carriers in your area. IF the price is too high, I would look for another carrier to represent.

Very helpful and informative post. I agree with all he said.

 

[todd02]

What State are you in? I'm a Farmers Agent. Depending on your marketing and how many leads you can produce, ask other Farmers agents in your area what their closing ratios are. Make sure you ask at least 3. Then you can easily figure out how many you need to sell, leads cost and yes Farmers offers subsidy interest free loans.

I got my best friend into Farmers Dec of last year and in 2013 he Grossed over 100k with subsidy loans that are already waived.

The way to make money with Farmers…. Quote as many people as humanly possible and you must be a closer.

 

[bboman23]

What State are you in? I'm a Farmers Agent. Depending on your marketing and how many leads you can produce, ask other Farmers agents in your area what their closing ratios are. Make sure you ask at least 3. Then you can easily figure out how many you need to sell, leads cost and yes Farmers offers subsidy interest free loans.

I got my best friend into Farmers Dec of last year and in 2013 he Grossed over 100k with subsidy loans that are already waived.

The way to make money with Farmers…. Quote as many people as humanly possible and you must be a closer.

You got him in at farmers December of last year, and he made over 100k? So he made 100k in one month? Since December of last year was 2013

 

[todd02]

Of course not one month retard. In 2013 he wrote 700 policies. He was ranked 70th in Texas for Farmers. I was Ranked 50th. If you are in the Top 100 you can easily be making 500k a year, gross, in 4-5 yrs.

 

[bboman23]

Of course not one month retard. In 2013 he wrote 700 policies. He was ranked 70th in Texas for Farmers. I was Ranked 50th. If you are in the Top 100 you can easily be making 500k a year, gross, in 4-5 yrs.

Your the retard. Learn how to post. You got agent in Farmers December of last year (this is 2014 so that means last month was December of 2013) and he made 100k in 2013.

 

[blue_wynd]

This escalated quickly........

 

[bboman23]

Not really. He tried to clown on me then realized what he actually wrote and tucked tail

[email protected]

 

[blue_wynd]

No, I meant the name calling. Not you, the other guy. That came out of nowhere. And why are you leaving your email? Lol. You want him to take it outside, figuratively speaking ?