Need Help with Choice Please.

[Lori1058]

Hello,

I am studying for the Illinois exams and feel confident and excited about my new career change. I realize this a hard business, but I successfully sold equipment repair contracts for 15 years in an industry where most people quit after six months.

With that said, my local State Farm agent said he would hire me to write new business for commission and expenses - no residuals. I would get a tiny base and expenses covered. I estimate that 85% of my success will be from my own efforts and about 15-20% agent provided leads.

This seems like a great way to get my feet wet in the business but wonder if I would be better off joining a good independent agency? I realize I would not get any leads but at least I would earn residuals.

I would greatly appreciate feedback.

Thank You.

 

[Josh]

I think that is a great way to start, but you'll never get rich at it. Try it for a few years.

 

[xrac]

Get licensed and get your feet wet. Since you have no residuals you have nothing to lose if and when you walk away. Be sure to build and store your own data base of your contacts, prospects and clients separate from anything you have and work and store it off premises.

 

[Lori1058]

Thank you for your response. I'll be more than happy to make a decent living although getting rich would be nice!

When you say there is not a lot of money in it do you mean selling for an agent with no residuals or the type of products/services a State Farm, Allstate, Farmers, etc; sells?

Wouldn't working for an independent agency allow me access to a variety of carriers and pricing to match customer needs. As someone mentioned in another thread, If you sell for one agency and they raise their premiums you are stuck (trying) to sell high premiums.

Am I correct that when working for an independent there's a price and product for everyone?

Thanks
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Get licensed and get your feet wet. Since you have no residuals you have nothing to lose if and when you walk away. Be sure to build and store your own data base of your contacts, prospects and clients separate from anything you have and work and store it off premises.

Thanks XRAC.

 

[BTFuzz]

Thank you for your response. I'll be more than happy to make a decent living although getting rich would be nice!

When you say there is not a lot of money in it do you mean selling for an agent with no residuals or the type of products/services a State Farm, Allstate, Farmers, etc; sells?

Wouldn't working for an independent agency allow me access to a variety of carriers and pricing to match customer needs. As someone mentioned in another thread, If you sell for one agency and they raise their premiums you are stuck (trying) to sell high premiums.

Am I correct that when working for an independent there's a price and product for everyone?

Thanks
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Thanks XRAC.

Working for an agency and only getting paid for the new business you bring is a tough road...however, you gotta get experience somewhere.

Eventually, you really should try to go independent as the opportunities are there for risk placement and the ability to be your own boss and make as much $$ as you want.

 

[Josh]

Be sure to build and store your own data base of your contacts, prospects and clients separate from anything you have and work and store it off premises.

That's more than a little unethical. If the SF agent is paying him to build his business, the SF agent owns the business. If you don't like that idea then don't sign up, but you're stealing someones business if you take it with you after they paid you to build their book of business. If you can't stand the idea of walking away from something like that then you should start off independent and build your own book.

 

[Lori1058]

That's more than a little unethical. If the SF agent is paying him to build his business, the SF agent owns the business. If you don't like that idea then don't sign up, but you're stealing someones business if you take it with you after they paid you to build their book of business. If you can't stand the idea of walking away from something like that then you should start off independent and build your own book.

I'm sure a non-compete would be in order and rightfully so. I'm glad I have time to think this over. It would be a great way to learn but then someday having to walk away from all the relationships built...

 

[Josh]

I'm sure a non-compete would be in order and rightfully so. I'm glad I have time to think this over. It would be a great way to learn but then someday having to walk away from all the relationships built...

The real value in what you're being offered is learning the business. If you can build relationships once you can do it again, the hard part is learning to prospect, not keeping the clients.

 

[Icando]

Red Blooded American, you may want to check the spelling of your thread reply. Can you say MAJOR typo?

 

[xrac]

That's more than a little unethical. If the SF agent is paying him to build his business, the SF agent owns the business. If you don't like that idea then don't sign up, but you're stealing someones business if you take it with you after they paid you to build their book of business. If you can't stand the idea of walking away from something like that then you should start off independent and build your own book.

Personally I don't think it is unethicall. Lori is saying that she will generate 85% of the leads. They will be her customers. All the agency will do is pay expenses and will take a 15% override. There is no doubt that a non-compete will be involved. If and when she were to leave I would consider these clients to be fair game once a con-compete expires. I would honor a non compete but then it would be game on. I think that is the way 90% of us on here would operate but maybe I am wrong.