Need some Professional Advice

[Longtimelurker]

I have been a commercial banker for 20+ years and have always thought about venturing over into insurance. I primarily do commercial real estate so insurance is not foreign to me by any shot. A few general questions I have for the group below and please be bluntly honest. I need to hear it, the good bad and ugly.

I’ve looked at captives, not really for me as I don’t want to hire people to service (where I am is very high priced and I’d have to pay a fortune for people that will likely just be a revolving door anyway). Plus I want to have multiple carriers etc etc. I’m fine giving up some on the renewal to offset servicing with the groups I’m speaking to (I think).

Currently looking at Brightway, Goosehead and a small independent type firm (branch concept) that all pretty much offer the same concept, same ownership structure etc etc. The Indy has no franchise fee, but I’m leary of the service aspect they offer (how good is it) along with the technology and marketing they offer. The other two I’m more comfortable with the service and marketing aspect, but each come with a very large franchise fee that you pay for that.

so the questions (if you’re still reading):

Has anyone continued to work their full time job while building a book of business on the side? I primarily work from home now and can pretty easily juggle both jobs. I cannot quit banking cold turkey as I just can’t walk away from the money and benefits I have being the sole breadwinner for the family. I just need to build a book first so it’s a smoother transition financially if that’s possible.

I am licensed in insurance, but have not practiced per se. Are there any other ways of getting carrier appointments if I have zero experience. Everything I’ve read is pretty much a no. So I guess that’s what the franchise fee is kind of for which I’m fine with. I don’t see any other way of doing it as all the aggregators require experience (ie firefly). Then you will still need the technology, marketing etc etc on top of that as I don’t want to build it out myself.

any other comments or suggestions as I’m just kind of overwhelmed with it all at the moment. It’s something I’ve been dipping my toe in the water with for the past several years and I’m really ready to make a move if the dual gig for a little while will work.

thanks for any help or insight you guys can share.

 

[Markthebroker]

Independent commercial broker here with a successful book of business.

You say you've been "dipping your toe". What does that mean? I would take that as meaning you have been working part time for someone, which is exactly what I would suggest for you starting out, but your post does imply that.

 

[Longtimelurker]

Independent commercial broker here with a successful book of business.

You say you've been "dipping your toe". What does that mean? I would take that as meaning you have been working part time for someone, which is exactly what I would suggest for you starting out, but your post does imply that.

sorry, I meant I’ve been speaking to a ton of folks about doing this for years now. Met with captives, the Indy’s etc etc and just haven’t pulled the trigger on doing anything. Have put it on the back burner and passed and for the past three of four years it just keeps coming up in my head to do). Kind of ready to take the chance and do it, but just can’t leave my banking job cold turkey and go to zero income out of the gate. I have a nice savings but just can’t take that risk right now of going to insurance full time and blowing through the savings

 

[whatyouwantfinally]

I've seen a handful of people go the route you're talking about and none of them succeeded. Building a P@C book is a full-time job unless you have producers working for you and someone managing them.

The only scenario I see with potential is if your full-time job (or personal connections) provides you a steady stream of insurance prospects. And I don't just mean a few here and there, I'm talking daily. Even then, you'll have to commit a decent amount of time. If your full-time doesn't really take up 40 hours of your time, and you're a workhorse with a good marketing plan...maybe.

It really is all about finding prospects. Largely incompetent agents with a steady flow of people to talk to do well, brilliant agents with all the people/sales skills in the world fail without it.

 

[LostDollar]

Caveat, NOT an agent.

After reading posts here for awhile, my first question would be, would franchise insurance opportunities even allow the franchise holder to work in another industry and just do part time activity in the franchise option.

 

[Longtimelurker]

Thanks. Yes, my current job I could honestly do in 20-30 hours a week max. It ebbs and flows and it’s feast or famine. I have a lot of downtime and working from home would make wearing two hats less noticeable and more palatable I think. It wouldn’t be a long term plan (to do both), but just long enough to where I can replace about 50% of my current income.

good points otherwise. I’ve always been a top producer in banking so I know what it takes to be successful particularly with a new venture like this (grind, grind and then grind some more). I know it does take time after you plant seeds for you to harvest.

And wait, you mean all those advertisements on Facebook of all high quality leads and systems aren’t real? Hahaha

 

[LostDollar]

I am licensed in insurance, but have not practiced per se. Are there any other ways of getting carrier appointments if I have zero experience. Everything I’ve read is pretty much a no. So I guess (??) that’s what the franchise fee is kind of for which I’m fine with. .

Caveat, NOT an agent.

That looks to me like something you should get a lot of clarification on before you take any action.

 

[Longtimelurker]

Caveat, NOT an agent.

After reading posts here for awhile, my first question would be, would franchise insurance opportunities even allow the franchise holder to work in another industry and just do part time activity in the franchise option.

most don’t, but none of them have minimum sales quotas, requires office hours (tell me i can open three days a week if I want as it’s my business and that can be sat and Sunday as two). I also have my wife who is not working right now that could go in with me to “technically” work it full time.

 

[LostDollar]

most don’t, but none of them have minimum sales quotas, requires office hours (tell me i can open three days a week if I want as it’s my business and that can be sat and Sunday as two). I also have my wife who is not working right now that could go in with me to “technically” work it full time.

I read mostly in the senior insurance forum. In the health insurance market, I see agents saying that non-licensed assistants have a lot of restrictions on what they can do with clients when they do not hold a license. No idea how that compares with P&C, but it seems like something you should do some checking on if you are considering using a non-licensed spouse to create a full time insurance operation.

 

[Longtimelurker]

I read mostly in the senior insurance forum. In the health insurance market, I see agents saying that non-licensed assistants have a lot of restrictions on what they can do with clients when they do not hold a license. No idea how that compares with P&C, but it seems like something you should do some checking on if you are considering using a non-licensed spouse to create a full time insurance operation.

should have notated, she would get licensed too. Not trying to skirt the laws and/or get in trouble.