Hi Everyone,
I apologize if this has already been discussed, I have used the search option to sift through as much as the information as I could but wanted to see if I can get peoples experiences and opinions all in this thread. A little information about myself. I am a three year captive Farmers agent, I know there are a lot of people who are anti captive and I honestly see the pros and cons for both but recently I have made the goal to start my own independent agency. The company was good to me and I have learned an incredible amount in the time I have been with them about coverage, how to run an office, how to market, how to have a process ect. The main reason I decided to leave is because the company has had some major issues in my state and our closing rates and competitiveness have been horrible and I do not want to build a carrier on a 5% market close rate (Yes it is currently that low in my county/state).
Ok now that is settled I know that there are a lot of things that need to be done in order to start a brokerage.
1. All current licenses, businesses licenses
2. E&O coverage for your agency
3. Appointments with carriers
4. Management System
5. Business/Marketing Plan
6. Money
My current hurdles are:
3. I have not reached out to any carriers for direct appointments and from everything I read it can be tough to get appointed with good national carriers. In order to start off on a good foot I want at least 3-4 Good carriers on both Auto/Home because I will be targeting a preferred client no high risk non standard ones.
4. What is your expierence with management systems. There are so many out there ones that are basic and ones that have all the bells and whistles. Is it better to start out paying a little more for something you will never have to change or is it better to keep the lowest overhead possible and use a crappy system until you can upgrade later?
6. Do any of you remember the costs associated with breaking off on your own? I know that I will need income in order to survive. The numbers I have reach is I would need about 60-70K to start up for office, marketing, and income in that first two years and dont see me breaking even till the third year. Does this sound conservative to you or un realistic?
I currently have about 600 PIF with Farmers and do not plan on converting any over until at least after the first year so in the first year I am 100% on my own again. Any help you could give would really help. Thanks Guys!
Leland
I apologize if this has already been discussed, I have used the search option to sift through as much as the information as I could but wanted to see if I can get peoples experiences and opinions all in this thread. A little information about myself. I am a three year captive Farmers agent, I know there are a lot of people who are anti captive and I honestly see the pros and cons for both but recently I have made the goal to start my own independent agency. The company was good to me and I have learned an incredible amount in the time I have been with them about coverage, how to run an office, how to market, how to have a process ect. The main reason I decided to leave is because the company has had some major issues in my state and our closing rates and competitiveness have been horrible and I do not want to build a carrier on a 5% market close rate (Yes it is currently that low in my county/state).
Ok now that is settled I know that there are a lot of things that need to be done in order to start a brokerage.
1. All current licenses, businesses licenses
2. E&O coverage for your agency
3. Appointments with carriers
4. Management System
5. Business/Marketing Plan
6. Money
My current hurdles are:
3. I have not reached out to any carriers for direct appointments and from everything I read it can be tough to get appointed with good national carriers. In order to start off on a good foot I want at least 3-4 Good carriers on both Auto/Home because I will be targeting a preferred client no high risk non standard ones.
4. What is your expierence with management systems. There are so many out there ones that are basic and ones that have all the bells and whistles. Is it better to start out paying a little more for something you will never have to change or is it better to keep the lowest overhead possible and use a crappy system until you can upgrade later?
6. Do any of you remember the costs associated with breaking off on your own? I know that I will need income in order to survive. The numbers I have reach is I would need about 60-70K to start up for office, marketing, and income in that first two years and dont see me breaking even till the third year. Does this sound conservative to you or un realistic?
I currently have about 600 PIF with Farmers and do not plan on converting any over until at least after the first year so in the first year I am 100% on my own again. Any help you could give would really help. Thanks Guys!
Leland
