Newbie Questions

[mywaytotalk]

I have a few questions but will give you a quick background. I'm mid 30's, non-degreed, have spent the last 9 yrs in B2B new business development with a company that I started in sales with and ended as VP of Sales over seeing 3 regions, 10 reps and was a minority shareholder. I sold my shares and am currently considering career options. I have studied and researched the financial service industry for the past 5 yrs and always thought I would become a financial advisor when this day came. I'm evaluating these opportunities but in the mean time have a friend who owns an well positioned Indy P&C Co. that I have been speaking with.

1. Anyone have any experience of P&C Ins. vs. Financial Planning as a career choice? Have you moved from one to the other and if so why?
2. What are realistic earnings for 1st, 3rd and 5th yr P&C guys? Indiv. vs. Commercial Lines
3. How much premium realistically is the the better guys carrying at 1, 3 and 5 yrs?
4. What is the normal split for someone with an Indy on new business and renewal business?
5. Why go with an independant instead of developing my own agency where I wouldn't have to split and what splits does it make sense to not do this

Thanks for the help!

 

[Guest]

I chose P&C over finacial because I dont want to mess with peoples money long term.
Personal lines and commercial, its one and the same, dont think you will only sell commercial and not personal thats stupid, are you going to turn away business? if you get commerical account, will you say no to doing their personal stuff? If you say yes, I will guarentee you they wil become my clients because If I get one of the accounts, I am going after everything,

Earnings will vary depending on what you sell, how good you are, what products you have and what carriers you have.

Chances are you cant go IA without experience.

 

[1manshow]

I took P&C because I wanted freedom after I did my time. The financial guys are stuck when it comes to delegating responsibilities...that was my hang up. I have effectively delegated everything except my marketing so I have plenty of "me" time.

I'd guess demographics will play a role but P & C will be slower to start, but steady after the 5 year point. I'd guess a good producer will get to 6 figures after 5 years...maybe 3yrs. Can't speak for the compensation on the financial guys. I have a few as clients and they're in the 200K's so I'd guess it's not a big gap on the compensation.

 

[mywaytotalk]

Thanks for the feedback. FA guys are geared towards 6 figures in 3 yrs and if you are not there between years 3-5 you shouldn't be in the business.

Please explain about delegation with P&C vs. Financial?

Why would I not be able to go Indy right out of the gate?

 

[PDX_Agent]

If you have a good network you can go indy right off. If you have some capital you might be able to buy an established book if you can show the carriers represented a good plan.

 

[mywaytotalk]

I have a strong personal and professional network and I do have a little working capital. Tell me about buying a book?

 

[Guest]

put it this way, with P&C I dont have people calling me daily YELLING me because the stock market crashed and "on paper" they just lost hundreds of thousands of dollars....

 

[Sales71]

I do both but on the financial side I offer mutual funds. Like sep iras or 401k. Most of my clients are self employed. The only thing financial products pay very little for a lot of paper work.

 

[Bertolinoins]

Every single person you know has insurance. Every business owner you know has insurance that renews every year. They are going to buy it... it is just a matter of who they will buy it from. The chances of more than 20% of those people having enough investible assets to be
worth your while Is very, very slim. Finding $40M in AUM is not easy these days.

 

[mywaytotalk]

These are all good points. Give me some more info on income based on my original questions on years 1, 3, 5? I'm looking to build a business not get rich overnight but do need a good feel for what we are talking about.