Internet Vs Physical Agency Business

[FL_PC]

Given the internet, online insurance transactions, what would you say about the current changes and near future?
I wonder what is the online business percentage and if it is affecting the agencies big time. Would you say that agency business has been losing good amount of business?

 

[Bertolinoins]

Other than single auto policies I don't run into the internet carriers (Geigo, Progressive, Esurance, 21st, etc) at all. If somebody calls or emails my agency with one vehicle, low limits and they are with a internet carrier I just tell them to stay where they are. That really isn't the sweet spot for an independent agency owner anyway. When they get married and buy a house... they will look at their insurance program again and I feel like I match up very well at that point.

 

[Guest]

I think he is asking, are you interent marketing?

HELL YEAH! if you arent, your missing a grwoing percentage of shoppers.

 

[FL_PC]

What I am asking is this;
More and more people are buying their car insurance from internet. So are agencies loosing a lot business because of this.
Therefore, is having an agency getting less profitable?

By the way, I have a question and need your help on this;

I have my 2-20 and have not worked in the industry yet. Because, I just cannot find a job. They look for experience. I am smart enough to pass the exam but will not be able to use the software to get/give an estimate for some people. Anyways.
I am thinking on opening my agency. I know how crazy it sounds. No customer, overhead etc. Also the appointment issue. Oh well. I will give myself 6 months to see how it goes.

I'd like to know what percent range my profit would be from selling an auto (basic and/or comprehensive) or home policy. I am sure the rates varies with the company, experience etc.

I really need your response.. What is the average profit margin for the beginners like me. Please.. Thanks!!

 

[infoe]

Theres a 99.9% chance that if you open up your own agency with 0 experience you will fail. Most people here will not take the time to respond to your question unfortunately, because of your lack of experience.

You NEED to find an agency to work for whether it be captive or independant. There must be an agency out there willing to hire.

Where in FL are you located?

 

[djs]

If you plan on only giving yourself 6 months, you might as well not start. P&C sales is a minimum of a 3 year startup. It's tough to make the numbers work any other way.

Direct Internet writer sales have no overall affect on your business. Focus on the type of clients you want and work that business. Not a big deal.

Profit margin? Not sure what you are looking for. Commission average from 10 - 15% per sale for auto.

Dan

 

[FL_PC]

Theres a 99.9% chance that if you open up your own agency with 0 experience you will fail. Most people here will not take the time to respond to your question unfortunately, because of your lack of experience.

You NEED to find an agency to work for whether it be captive or independant. There must be an agency out there willing to hire.

Where in FL are you located?

I know, thats why I am begging for a response.
I am in Fort Lauderdale area.
- - - - - - - - - - - - - - - - - -

If you plan on only giving yourself 6 months, you might as well not start. P&C sales is a minimum of a 3 year startup. It's tough to make the numbers work any other way.

Direct Internet writer sales have no overall affect on your business. Focus on the type of clients you want and work that business. Not a big deal.

Profit margin? Not sure what you are looking for. Commission average from 10 - 15% per sale for auto.

Dan

THANK YOU for the great response Dan.

 

[Denise509]

What I am asking is this;
More and more people are buying their car insurance from internet. So are agencies loosing a lot business because of this.
Therefore, is having an agency getting less profitable?

By the way, I have a question and need your help on this;

I have my 2-20 and have not worked in the industry yet. Because, I just cannot find a job. They look for experience. I am smart enough to pass the exam but will not be able to use the software to get/give an estimate for some people. Anyways.
I am thinking on opening my agency. I know how crazy it sounds. No customer, overhead etc. Also the appointment issue. Oh well. I will give myself 6 months to see how it goes.

I'd like to know what percent range my profit would be from selling an auto (basic and/or comprehensive) or home policy. I am sure the rates varies with the company, experience etc.

I really need your response.. What is the average profit margin for the beginners like me. Please.. Thanks!!

Go out there talk to agency owners and SELL YOURSELF (not literally though lol) Go and tell them that you're motivated and want a career in this industry. Get your feet in the door. Without experience, you will fail. Sorry but it's the truth. I've been working in this industry for about 3yrs now and I still have A LOT to learn. Don't expect to make much money in the first months. Bust your butt and you'll see results. SAVE your $$ so you can live off that when you decide to open your agency. And I'm not talking hundreds I'm talking THOUSANDS of $$ just to even pay for your office expenses and to buy food pay the bills. People may say I'm exaggerating, but when you have bills to pay for your house AND office with hardly any income, you'll be glad you saved up that green!! First things first, get experience thennnnnn open your own place.
- - - - - - - - - - - - - - - - - -
Oh I almost forgot........people that buy their policies on the internet don't make the best clients.....I hardly ever run into those policies. If I ever do though, all I have to do is tell them how little insurance they have, they get freaked out and buy a policy from me. It's that simple. I can gurantee that 90 % of those people have the lowest coverages the state requires (which are basically no coverage at all). The internet stealing your business is the last thing you wanna worry about...

 

[JP Savage]

The odds will be stacked against you. Have you walked in to agencies around to ask for a job? If not, do it. The worst they can tell you is no, and you'll need to get used to hearing that anyways.

As far as the internet companies, I think they may actually help keep some of the garbage away. Figure out what kind of client you want and go after that market.

 

[FL_PC]

Go out there talk to agency owners and SELL YOURSELF (not literally though lol) Go and tell them that you're motivated and want a career in this industry. Get your feet in the door. Without experience, you will fail. Sorry but it's the truth. I've been working in this industry for about 3yrs now and I still have A LOT to learn. Don't expect to make much money in the first months. Bust your butt and you'll see results. SAVE your $$ so you can live off that when you decide to open your agency. And I'm not talking hundreds I'm talking THOUSANDS of $$ just to even pay for your office expenses and to buy food pay the bills. People may say I'm exaggerating, but when you have bills to pay for your house AND office with hardly any income, you'll be glad you saved up that green!! First things first, get experience thennnnnn open your own place.
- - - - - - - - - - - - - - - - - -
Oh I almost forgot........people that buy their policies on the internet don't make the best clients.....I hardly ever run into those policies. If I ever do though, all I have to do is tell them how little insurance they have, they get freaked out and buy a policy from me. It's that simple. I can gurantee that 90 % of those people have the lowest coverages the state requires (which are basically no coverage at all). The internet stealing your business is the last thing you wanna worry about...

Very good post. THANK YOU! Any comment on agent profit range info for home? 10-15 percent like auto?