Need Advice (New Agent)

[DexterManleyReading]

Been reading these boards for a few weeks now and have gotten some good advice from many of you.

I am a soon-to-be licensed L&H agent (test on Saturday) and am looking to become an independent agent soon after and would like some advice on how to get started prospecting.

My background is this.....6+ years in the insurance industry (corporate side....most recently in underwriting). I have very little sales experience. I've never worked in an agency.

It seems the board is in agreeance that new agents should start out as captive and I completely understand that. But how would I benefit from that? I ask this because I have some advantages....

1.I have insurance industry experience
2.I have relatives that have owned and operated indepedent insurance agencies in the past and are willing to help as much as they can in training
3.My dad has been in sales for many years (25+) and he's willing to help train me on sales
4.While I do not personally have a large bankroll, I have someone that is willing to stake me some up-front cash to start-up.

The only problem with the relatives I have that spent 10+ years as independent and captive agents is they've been out of the business for 7-8 years. So, basically they're not too up on the whole internet insurance agent marketing ordeal. But they no doubt know the ins and outs of the business.

So, with that, how would someone in my situation benefit from starting out captive? Am I wrong thinking that since I have these resources I should just go independent from the start?

One current agent I met with a few weeks back said he recommends I start out almost part-time and kind of ease my way into the business. Would you all agree with that or should I go full-steam from the start?

One other minor problem is my credit. No bankruptcies or anything like that just some accounts going to collections thanks to an ungrateful piece of crap ex-girlfriend! Do you foresee any problems that may arrise?

Thanks! (sorry for making it so long)

 

[somarco]

Your work experience gives you a lot of inside training for the business and can work to your advantage in preparing and submitting applications. I would be curious as to the type of underwriting you did. Medical or life? Group or individual?

You also have knowledge about the industry that can work to your advantage or hinder you. The first 20+ years I was in the industry I was a carrier rep working in large group cases (fully insured, then self funded).

Changing over to individual health sales was a learning experience, mostly in the way underwriters evaluate individual health apps vs group apps. As a result, I got my butt handed to me on a few apps early on but I quickly learned what to do.

Your lack of sales experience and particularly trying to sell by phone/internet (if that is what you are attempting to do) will be especially challenging. Even more so if you lack the funds to float you until the income starts to flow.

Asking someone to float you is a good way to kill a relationship. Borrowing money (AKA commission advances) might not be any better.

Nothing wrong with starting part time to see if you even like this side of it and can generate an income. Better than messing up things financially by going full bore only to make your situation worse than it is now.

And this . . .

If Frank Slade can dance the tango and drive a car then you should be able to read.

 

[Mac1958]

Dexter, I'd be happy to help (I've written two books on sales and public speaking & several magazine articles on the same topics) but I need more information.

What do you plan on specializing in - health insurance, group health, senior products, other?

I assume you'd be essentially a one-person shop, as an insurance broker?

Let me know, and I'll throw out some ideas.

...

 

[SportsNut]

Been reading these boards for a few weeks now and have gotten some good advice from many of you.

I am a soon-to-be licensed L&H agent (test on Saturday) and am looking to become an independent agent soon after and would like some advice on how to get started prospecting.

My background is this.....6+ years in the insurance industry (corporate side....most recently in underwriting). I have very little sales experience. I've never worked in an agency.

It seems the board is in agreeance that new agents should start out as captive and I completely understand that. But how would I benefit from that? I ask this because I have some advantages....

1.I have insurance industry experience
2.I have relatives that have owned and operated indepedent insurance agencies in the past and are willing to help as much as they can in training
3.My dad has been in sales for many years (25+) and he's willing to help train me on sales
4.While I do not personally have a large bankroll, I have someone that is willing to stake me some up-front cash to start-up.

The only problem with the relatives I have that spent 10+ years as independent and captive agents is they've been out of the business for 7-8 years. So, basically they're not too up on the whole internet insurance agent marketing ordeal. But they no doubt know the ins and outs of the business.

So, with that, how would someone in my situation benefit from starting out captive? Am I wrong thinking that since I have these resources I should just go independent from the start?

One current agent I met with a few weeks back said he recommends I start out almost part-time and kind of ease my way into the business. Would you all agree with that or should I go full-steam from the start?

One other minor problem is my credit. No bankruptcies or anything like that just some accounts going to collections thanks to an ungrateful piece of crap ex-girlfriend! Do you foresee any problems that may arrise?

Thanks! (sorry for making it so long)

If you could go captive, due to the credit collections scenario, that is what I would recommend. You can always go indy at a later time. Since you have NO sales trng especially, and no $$$ (in spite of the offer to bankroll you, which is a bad idea in most cases), the captice approach will allow you to learn on the job and provide some draw or salary temporarily. Sure, it would be better to go indy right out of the chute, but the odds of failure (totally) drastically increase by doing so... depends on how big of a gambler you, I suppose.

The part time idea isn't a bad one either if you have the type of job that will afford itself to you doing part-time ins sales, as well as provide enough income too. This will expose you to the industry and then you can make certain that you really want to be in the ins biz.

As to the g/f thing and the financial problems that ensued, you need to take responsibility for that, accept it and stop laying the blame. If you allowed her to place you in that postion, unchecked, then that was a bad decision that YOU made in doing so. So accept it, and go on, but stop laying blame, because that is NOT a trait that runs congruent with success. Successful ppl BUCK-UP, and accept it when they do good or bad, and learn from the error of their ways.

Enuf preaching; sorry about the sermon. Now go out and figure what you wish to do, and do it well.

 

[DexterManleyReading]

I don't have to worry about ruining a relationship by borrowing money because it'll be from my dad. He's been encouraging me to go for this for a long time so he's more than willing to help get me out on my feet. My dad has 8 greedy SOB's (yes, I have 7 siblings!), so he's used to it.

What do you plan on specializing in - health insurance, group health, senior products, other?

I assume you'd be essentially a one-person shop, as an insurance broker?

I haven't completely determined this yet. I'm still getting opinions on what specific products to start with. Individual and small business health is the leader right now. I have more of a background in this, but I'm also starting to learn Life Insurance/Annuities as well. To answer your question, most likely at first I'd sell mainly health with an occasional Life policy.

I'll be sort of on my own at first. Down the road I'd like to partner with someone. At first, my dad is going to help get me leads right out of the gate. Getting comfy on the phones is going to take some time getting used to so I think I'll probably sit with him for a while and get some pointers.

you need to take responsibility for that, accept it and stop laying the blame.

I have accepted it and moved on. I was young and dumb and put everything in my name assuming she'd pay her portion of the bills no problem. That was until she left me! Oops!! I don't cry about it, I know I'll get my credit straightened out sooner rather than later. Just wish I wasn't a dumbass at age 23!

 

[SportsNut]

Just wish I wasn't a dumbass at age 23!

Oh come on now, we are all dumasses @ 23. You wouldn't want to miss out on that portion of the trng, now would you ...?

The good news is, you won't be 23 your whole life, and this too shall pass.

 

[seadevil]

Dexter,

I have two sons, one 23 and the other 21, they are dumbasses. I'm 47 and have my moments of being a dumbass. Biggest difference is that my sons are dumbasses on a consistent basis. I figure if I could grow out of it, I'm sure they will.

 

[tiburon5253]

I like your questions DMR. I'm in a similar boat, starting out and trying to "find my way".

 

[Gregb3104]

I recommend that you do not become a captive agent. With your background, and resources, there's not much advantage to you.

Instead, identify the 3 to 5 health insurance companies that are most prominent in your sales area, and contract directly with those carriers. Here's two quick ways to accomplish this. Go to ehealthinsurance.com, enter your information as if you were a client, and find out what carriers they offer to potential clients. Ehealthinsurance has done the heavy lifting, and you can benefit from their research. For your website, you'll want a quoting engine. Contact Norvax or Quotit, ask them about their quoting engines, and ask them for the health insurance carriers that they see most frequently.

Regarding your credit history, you may not be able to obtain annualization with some carriers, but should be able to be appointed with most, if not all, carriers, and receive commission on an as earned basis.

Good luck to you.