Making Farmers Work?!?!

[thebig_j]

Hello Everyone. First off I would like to start by thanking everyone for the massive ammount of info on this site. I have been reading everything I can for about the past 10 days, and this is my first post. Sorry if it gets a little long.

My name is Joel and I have been working for Farmers' for about 3 months... (I know I know...) I have sold one renters policy in this time. I have since learned alot about myself and the world of insurance. The most important thing I have learned about insurance (and life) is that anyone can make excuses and fail. So far I have learned these truths, and this is how I feel about them.

1.) 90%+ of insurance agents fail
If a person talked to 10 people and me is my personality enough to make them remember me YES.
Am I a top 10% when it comes to bussiness, marketing, work ethic, and time managment...NO Can I learn this... YES
I have also developed a passion for insurance. I now understand the value of insuance. why its so important, and Why people need protected. I can sell this product. Its just very expensive.

2.) Cold Calls Suck... But I am not afraid of them and they are going to be the majority of my marketing plan come Jan 2nd. I use a single line auto dialer to keep the phone ringing

3.) Farmers' is expensive... But I think they have a market they are competive in... Nice expensive homes and small non-risky bussiness. Their sales idea of educating the customer is GREAT. I will always sell this way. But there is no REAL value in choosing farmers 250/500 liability over Kempers if the price is twice as high.

4.) My DM sucks and I will recieve little training... I have had about 3 conversations with my DM in 3 moths. He has an agant producer who is in charge of hiring and training... and shes less than awesome.

So whats the question? I have lots lol

-Is there anyone around here who has made farmers work? I understand the hard work, and many many chalenges. But it has to be possible.

-Does anyone think the "run to daylight" numbers (to pay off subsidies) are possible. Someone worked it out to about 3 apointments a day to get the numbers... sounds all but impossible... the numbers are

MONTHS P&c Life
6 months 150 13
12 Months 300 25
18 Months 450 38
24 Months 600 50
30 Months 750 63
36 Months 900 75

If these numbers are not hit I could owe farmers as much as $75000

-Alot of people say the first 3-5 years are the hardest you'll ever work. people also say learn from a captive program then go indy. If farmers has a no compete clause, I would have to build my book twice correct? doubbling the 3-5 hardest working years?

-Any advise on finding a producer situation or indy to work for. I cannot afford the upfront cost of opening up my own agency. Unless it could be done for a couple thousand.

-I also need advise on how to spend my time. I have comitted to making 8 hours of cold calls a week in January. mostly from 4-7 in the pm; is it true this is the only good time to call homes? What are other great uses of my time. I think i'm going to make a daily schedual to help keeep me on track.

Again I'm sorry for all the questions (bet I'll come up with more) and all the long post, but thanks in advance for any help. I Really want to make this work. I wait tables now and I have to get on with my life. I want insurance to be that avenue. I can do this, I just need your help

 

[moonlightandmargaritas]

Their sales idea of educating the customer is GREAT. I will always sell this way.

It's GREAT until they take your "education", and use it to BUY somewhere else. SELL today, EDUCATE tomorrow!

 

[djs]

Hey Joel

Lots of good questions.

The advantage of being a P&C insurance agent is the benefit of renewals and those pesky renewal commissions cluttering up your bank account That is what makes it a great job!

Now, to clarify a few misconceptions you have:

- Subsidy is a bit like a drug. They give it to keep you strung along. This is a harsh way to look at it, but I think you already see this a bit (most people do). If you take it, put it in the bank and don't spend it till you are sure you are going to make it.

- Insurance clients don't really want to be educated on insurance. They want to know that they are covered, beyond that, most could care less. Think about it, when you buy a TV, do they talk about the frequency of the color subcarrier, the differences between PAL, NTSC, ATSC, the difference between 1080I and 1080P? No. Most salesmen wouldn't have a clue and it doesn't matter to you (except for 1080I vs P).

- Ask your DM if his district has grown or lost policies over the last 2 years. Odds are, they have lost a reasonable amount. If so, find out what that reason is (I can tell you but that takes the fun out of the question).

- Ask your DM why someone should have a Farmers policy over a State Farm, Allstate, or Safeco policy. His answer will be interesting, but he won't answer with anything that is Farmers specific. His answer will be things like better educated agents (maybe a few, but State Farm and Allstate agents are pretty smart as well). His answer will be claims service. Farmers had great claims service a few years ago, its now about average. He'll dance around this question. Truth is, policies are about the same (for the benefit of others reading this post, yeah, I know, go along for now).

- Farmers is expensive. You are correct that you can find niche markets where they work well in. It is a moving target though, keep up.

- Your DM sucks - This is a doomed for failure statement.

Very few (and I mean VERY FEW) make numbers for run to daylight. Keep that in mind.

Dan

 

[thebig_j]

Thanks for the quick responses. Couple of quick clairfications. I'm not getting to deep on the education side of things. But I have found that most people know nothing of liability limits and why they need to be high. I have had a few people tell them other agents just give them a price and they have no idea what anyof it means. so I'm just educating on basics. Beceause your right I don't know all that much. AND I have also had one prospect who was interested when I explained why she was underinsured. I called a few days later and they said they would be calling their agent to adjust their current coverages. LAME!!!

The subsidy scares the crap outta me. I don't want it because I don't want to have to pay it back. I don't know if I can do that. maybe just never sell those 4 life poilcys.

I like the idea of asking about whats different about Farmers'. I've been here for 3 months and I'm begining to find out. We have more picky guidelines to take home bussiness. Our prices on auto are based on credit and driving record has no bearing unless its bad. And we are high on most "average" bussiness. (decent car, decent credit, decent DMV)

I'm looking hard for the silver lining. I think I can see it if I just have a few more glasses of this kool-aid

 

[Sales71]

MONTHS P&c Life
6 months 150 13
12 Months 300 25
18 Months 450 38
24 Months 600 50
30 Months 750 63
36 Months 900 75

If these numbers are not hit I could owe farmers as much as $75000

Hi Joel
Not sure if you will make it. You said you sold 1 renters policy in 3 month that is a bad result. Why would you owe farmers 75k???

 

[thebig_j]

MONTHS P&c Life
6 months 150 13
12 Months 300 25
18 Months 450 38
24 Months 600 50
30 Months 750 63
36 Months 900 75

If these numbers are not hit I could owe farmers as much as $75000

Hi Joel
Not sure if you will make it. You said you sold 1 renters policy in 3 month that is a bad result. Why would you owe farmers 75k???

The Farmers' subsidy program is set up to give you up to $2500 a month in subsidy for 3 years. If you hit those sales numbers the subsidy is waived and you dont have to pay it back. Or if Farmers' decised to cut you loose you have to pay it back as well.

I know my production is nothing. I am working part time and have had some success with prospects. I have had a few appointments that have went well and then disipeared. I also have had folks that want to buy from me but it does not make sense at such a high price. I feel my biggest problem has been prospecting.

I have not done nearly enough. I have learned alot in the last month about what this carreer is Vs. what I thought it would be. I am going to ramp up my prospecting in January and realy put my ass to the grindstone. By late FEB I will know if this is for me. I think it is i just need to WORK HARDER.

 

[CaNewAgent]

Joel. Good luck making it work. It is very difficult to make it as a Farmers agent but the same thing can be said for State Farm and probably Allstate.

There are performance goals that need to be met in order to qualify for loan forgiveness. They are not easy goals to meet.

The best customers (the ones you want) simple write a check when the bill comes in the mail. The customers with tickets and accidents or who can hardly afford the policy are the people who are shopping for a better rate.

This is where Farmers and their higher rates become a problem. People buy auto based on price most of the time. In order to bind a policy you need to be competitive in price.

There is a reason Farmers wants you to talk to every one you know and ask for their business. Working the cold market is tough especially for a new agent who is learning how to write policies and sell.

Good luck. I hope you make it.

 

[xrac]

My advice is dump Farmers and find some place else.

 

[thebig_j]

xrac- I would love to leave Farmers' and start over. But I have no Idea how to get started. I see no job postings for a current agent who is looking for a producer. I see listings for allstate, bankers l&c, state farm... ect. I feel like this would all have me in a very similer situation. I love the idea of being a captive agent. Actuallybeing able to shop coverages and HELP almost every person you talk to. Not just heres our price hope you like it.
So... advise on that would be AWESOME. keep in mind I have next to NO money to start my own real office to please carriers.

Sales71 the 75K comes from the Farmers subsidy program. It gives up to $2500 a month to qualified agents for 3 years. If they hit the numbers from above the subsidy is waived. if not they have to pay it back. I have heard alot of agents have gotten burned by this offer. ALOT

CAnewagent- I havbe worked al lof my natural market and everyone I know had a better deal than FArmers' could offer. outside of my family my market is all young middle to low class individuals. Not what I'm thinking is farmers market.

Anyone interested in taking me through your day/week time wise. I am planning on cold calling 3 days a week from 4-7. the rest of my scedual is up for grabs. what should I fill it with?

 

[Sales71]

Hey Big__J

1. check your spelling
2. Captive is working for one company only
3. your market is low class its okay there is money
there as well..usually they buy a policy from you and refer you every one else.

4. $2500 a month is not bad money if you can get it. Take it
and screw farmers the worst case is in 3 years if you do not make it file BK and they will not get a dime from you.

Now get to dial the phone and you will find the gold and money!