Need Honest Advise in Regards to Becoming an Agent

[moonlightandmargaritas]

He is in sales in a totally different business and it has slowed down because of the downturn in the economy.

Smells like real estate and/or mortgage broker action to me...

 

[DT1970]

The median annual earnings of wage and salary insurance sales agents were $43,870 in May 2006. The middle 50 percent earned between $31,640 and $69,180. The lowest 10 percent had earnings of $24,600 or less, while the highest 10 percent earned more than $115,090. Median annual earnings in May 2006 in the two industries employing the largest number of insurance sales agents were $46,210 for insurance carriers, and $42,950 for agencies, brokerages, and other insurance related activities.

Source: Insurance Sales Agents

 

[livinwell]

Thanks for that info DT1970! I'll have to share it with him.
Wrong, MoonlightandMargaritas, no real estate or mortgage business here!

 

[xrac]

..... Is he crazy for quitting this to become an agent for State Farm?......

He is either crazy or experiencing midlife crisis or both. Some guys change wives at this age and some change careers. I did the later. If he goes into P&C insurance there is a good chance he will never see that kind of income again or at least not for a long time. If he decides to pursue this gig with SF you had better prepare to scale way back on your life style. Shed every expense that you can. Tell your kids to get ready to pay their own way through college.

There may be a better chance for him to achieve that type of income faster if he went with one of the Life companies like Guardian, NYL, Mass Mutual, or Northwestern Mutual. If I were him I would stay right where I am as long as I can.

 

[thespur1]

I CALL THIS MAJOR BS
PEOPLE WHO MAKE 300K WON'T EVEN THINK BOUT LEAVEN
MATTER FACT SOMEBODY MAKIN 300K WOULDN'T BE ON THIS FORUM WASTING TIME TYPING THEY WOULD BE OUT SELLIN.


MOST PEOPLE WHO GO ON FORUMS SAYING THEY MAKE 300K
ARE THE ONES WHO USUALLY MAKE VERY LITTLE/NOTHING


IF HE MAKES 300K WHAT DOES HE DO?


O YOU CAN'T TELL US RIGHT

 

[briko3]

OK...the suspense and killing us. What did he sell to make that kind of money ????

 

[djs]

Hmm, this sounds like a phone call I had a while back. This was about a year ago, maybe a bit more. This guy claimed he had been making over $300K a year, looking to slow down a bit, was wondering what he could make in the insurance world. He was doing the right thing, he was performing his due diligence.

Now, he had called me out of the blue, but he had a friend who was making over $600K a year as a State Farm agent. As we talked, I realized I knew the office that this agent worked from, but not the agent himself, other than by name. I did know he at least 'appeared' to be doing very well, and knew he had been in the profession for some time.

I still called the bluff, but it actually is possible, just on the far side of improbable. I do know P&C agents who make over $300K a year (yes, after expenses, including bonues, including agency appreciation, etc), but they are a special breed.

What I recommend your husband do is to find a few successful State Farm agents in your state and go talk with them. Also, talk to a few who have been running an agency less than 5 years, find out what their struggles are.

I'd suggest if possible, you join him on these conversations.

Being a P&C agent is not about the income for the first several years. It's about building an income for the future. When you understand the power of the residual income with P&C, you'll understand what motivates the agents, and what your husband saw years ago.

Just make sure you understand the contract....

Dan

 

[SportsNut]

Lady, I hope your husband is REAL good-looking because he ain't too bright.

Don't worry about it...my wife married me for the same reason.

I busted a gut reading that one Newby.... that was worth the price of admission. Er wait, more than admission, I guess.
- - - - - - - - - - - - - - - - - -
There are some P&C guys who are making king sized dollars, but the average is far less. There are some mil+ a yr folks out there, but again, there may be one of those to 1000 others.

If it were me, and I young, dumb and full of (?vigor?), and I was well healed enough in biz to be making 300K elsewhere... and was thinking about getting into the P&C biz, the only way I would do so is to buy and existing agency.

Now you aren't talkin pocket change here. An existing agency that has a net income of 500,000 a yr is going to sell for 3 times that figure, or more. But, if you can go in and maintain the existing biz, and market to increase the biz, you will do wonderful. The debt service on the 1.5 mil, (or maybe 1.25 mil, since any lender will want you to have some skin in the game), is going to be $ 150,000 to 200,00 per yr depending on amortization, which leaves you a livable wage of 250K, or so, plus new biz.

Bottom line is, if your hubby has the talent to come and cold and make it in the biz, he prolly has the talent to go in and run an existing agency too. Does he have the nerve to put it all on the "Pass line"...? Will his spouse stand by her man...? This novel could get interesting before it is over.

OK fellas, tear up the proposed scenario. Tell me and the lovely young lady why this will never work.

 

[livinwell]

I am new to this forum and haven't figured out how to do the clipping and pasting, but for thespur1, apparently you can't read very well. I am HIS WIFE, so he IS spending his time working and NOT WASTING his time on this forum! Because it is going to affect MY lifestyle too, I am doing a lot of research because he doesn't have the time.
For all those who are so interested, not that it should really matter, he works in the waste idustry. Understand, not everyone makes what he does, he makes 3x what any other salesman in his office makes. He just happens to be very good at what he does and is a very hard worker.
Now, why would he even think about leaving? He is under the impression that he can make 500,000+ a year if he is running his own SF agency, after the first few years. So who in their right mind would work for 300 if they could make 500? That's his logic. Also, the guy he works for is a loose cannon and could decide to shut the place down at any time, my husband feels like he has no job security, though I would kind of disagree with that.
Again, thanks to those who actually have something constructive to add!

 

[Newby]

Didn't Tony Soprano make good money in waste management?