Looking for advice from Allstate Agents

[BRIS]

Over 3x??? Are you serious?

Wow, only got 2.5 for mine. BUT I sold it!!

 

[doughboy]

I am also considering buying an Allstate Agency. I don't want to waste anyone's time, but when I talk to Allstate to see what agreement I would have with them, I get stonewalled. They tell me they will get to that when I reach an agreement to buy an agency. So...
What restrictions do they put on my life- do they own me?
What I want to know is if I can market some Group Medical on the side without them becoming upset. I have some good leads, but nothing I can live on, but not chump change either ie 10-20K.

Bottom line- I am willing to sell the hell out of Allstate, but if I can make some other easy deals, I want to do them.

 

[bobson]

Wow, only got 2.5 for mine. BUT I sold it!!

Right on! You must floating on easy street now. Did you feel bad for the guy that bought it? His check cleared, right?

 

[Soaringagent]

Why not just be an independent agent and then you can sell anything you want?

 

[doughboy]

I hear ya and I've thought about it. But building a business from scratch takes a long time. I am OK with buying a book from Allstate- its a good product and company. But there are other deals out there- stuff I don't think I could make a living on, but that would pay for a European vacation...

So rather than breathing Allstate 24/7, or 9 hours each day- id like to sell Allstate a majority of the time- say 7-8 hours and then see what else I can do here and there.

My question- How restrictive is Allstate? I don't want to loose my bread and butter- but I do want some bacon on the side....

Thanks

 

[pcguy]

I'm currently in talks with Allstate to purchase a local office as well. I was told that in no uncertain terms, no outside business (aside from the broker they have aligned with to write some commercial stuff).

But I also know an Allstate agent that signed an outside business disclosure for some business that he brought over with him that wouldn't fit in Allstate. They were ok with that, so I would suggest talking to the regional sales manager and discussing it. They seem to have some negotiating room. I'd be sure to get whatever you conclude in writing.

My concern is that there about a dozen Allstate agencies for sale locally and not a Nationwide, State Farm, or Independent to be found. I can't really get a good reason why.

 

[djs]

A lot of agreements don't allow agencies to be sold. Allstate allows it (I think the only captive that does) which is why you see them for sale.

With State Farm, Farmers, etc, you have an agreement in place where they buy the business from you directly. I'm never sure what Nationwide does.

I rarely see independent agencies for sale. Everyonce in a while, but it's not that common. I assume for a decent agency, there is someone from the inside that is willing to step up. For an agency that isn't so decent, well, I don't want to buy it either.

My point is, Allstate is for sale because they are basically the only ones (besides Brooke) that can be for sale. Plus, in many states, Allstate has taken a brutal pounding since Katrina, and the next year or 2 may not be so good. They will recover and be fine, in the meantime, they appear to allow some outside business, and they have great auto commercials

Dan

 

[insureagent]

I've been a captive Allstater, and an independent, maybe I can shed some light here for you. First of all, they both are good, ok? And don't let anyone tell you otherwise. If I'm an Allstate, and I'm talking to client and they bring up a cheaper rate from some company like Dairyland, look you want a company you know, you've heard of and is going to be around. Not some what was that name? If your an independent your gonna tell the customer, hey, I shop around for the best rate and blah, blah blah. So what you need to decide, Allstate has a nice buy out, lots of support, marketing, etc. everyone knows who they are. Captives are writing the lions share of personal lines, so if your looking at comml, then maybe indy is it because that is a different game. Now Allstate will let you "broker" thru a company they approve, last time was there it was Northeast Agencies. Submitted 26 deals and couldn't write any of them, so they don't have a wide market. But if your buying a book, good loss, long history, pay a little too much but what the heck. Sit back, wrk till 4, service the heck out of your customers, pick up a few new ones, win a few trips and life is pretty easy for an allstater. But don't start an allstate agency from scratch, that's plain stupid. Oh one last thing, with Allstate as with any captive, you will have the occasional visit from the area manager (probably 30 something) with his white shirt and water bottle who you'll have to kiss some once in awhile make em feel important and that you cant live without em. they like that. they definitely like the control, but I wouldn't mind the easy ride, if its not a scratch agency. Don't forget that. BTW, reason I'm no longer there, got terminated cause by life production was not up to snuff, #1 in auto in my market, but fell short on my life sales and told em to kiss off!

 

[xrac]

I've been a captive Allstater, and an independent, maybe I can shed some light here for you. First of all, they both are good, ok? And don't let anyone tell you otherwise. If I'm an Allstate, and I'm talking to client and they bring up a cheaper rate from some company like Dairyland, look you want a company you know, you've heard of and is going to be around. Not some what was that name? If your an independent your gonna tell the customer, hey, I shop around for the best rate and blah, blah blah. So what you need to decide, Allstate has a nice buy out, lots of support, marketing, etc. everyone knows who they are. Captives are writing the lions share of personal lines, so if your looking at comml, then maybe indy is it because that is a different game. Now Allstate will let you "broker" thru a company they approve, last time was there it was Northeast Agencies. Submitted 26 deals and couldn't write any of them, so they don't have a wide market. But if your buying a book, good loss, long history, pay a little too much but what the heck. Sit back, wrk till 4, service the heck out of your customers, pick up a few new ones, win a few trips and life is pretty easy for an allstater. But don't start an allstate agency from scratch, that's plain stupid. Oh one last thing, with Allstate as with any captive, you will have the occasional visit from the area manager (probably 30 something) with his white shirt and water bottle who you'll have to kiss some once in awhile make em feel important and that you cant live without em. they like that. they definitely like the control, but I wouldn't mind the easy ride, if its not a scratch agency. Don't forget that. BTW, reason I'm no longer there, got terminated cause by life production was not up to snuff, #1 in auto in my market, but fell short on my life sales and told em to kiss off!

Did you buy your book? How long were you there? What did it cost you to walk away?

 

[Gerald]

Raygroup,

Please PM me with your email address. I just registered and have to place 20 posts before I can PM.

I am considering an Allstate Agency and would like to email you with some questions.

Thanks,

Rob

I am currently an Allstate agent, purchased my agency in October 2007. Some of the important factors to me were the retention, average number of policies per household, and average time each policy has been on the books.

As someone else mentioned, you are going to be looking at about 2x the annual commission. That number goes up with the size of the book. A friend of mine purchased a book that does about $200,000 in commissions and he paid a little over 3x that for it. Obviously a bigger book is going to be more valuable because it's a lot easier to live on $200,000 than $50,000.

PM me if you need help finding any of that info, I can tell you which reports to get from the seller.