Planning my Insurance Career, Open to Advice!

[DHK]

Are you talking about the Kai-zen policy?

It's just another form of premium finance. There are many other companies that do the same thing.

Here's Global Financial with Leveraged Planning: (They take a 30% split of your compensation, if I remember correctly.)

 

[MikeyR]

It's just another form of premium finance. There are many other companies that do the same thing.

Here's Global Financial with Leveraged Planning: (They take a 30% split of your compensation, if I remember correctly.)

Thanks for attaching me the info! This makes me realize how much opportunities there are in the insurance market but also how quickly you can fail by spreading yourself so thin trying to do all of these.

Definitely going to need to build a well organized plan to tackle this.

 

[DHK]

Definitely going to need to build a well organized plan to tackle this.

No, you're not. Just because I understand these things, doesn't mean I do them.

This video may be VERY helpful for you. To put "premium finance" cases in perspective - they are Boardwalk and Park Place. If you spend all your time there, it'll bankrupt you. You can't start there. But if you focus on the Orange Property Group... you'll do better because your cash flow can be more regular.

 

[MikeyR]

No, you're not. Just because I understand these things, doesn't mean I do them.

This video may be VERY helpful for you. To put "premium finance" cases in perspective - they are Boardwalk and Park Place. If you spend all your time there, it'll bankrupt you. You can't start there. But if you focus on the Orange Property Group... you'll do better because your cash flow can be more regular.

I agree I meant a plan to starting my agency so that I don’t get distracted chasing every products I am thinking

P & C into L & H into investment over a course of 20 years

 

[DHK]

Good. There's tons of BSOs out there (bright shiny objects).

 

[insurlegend]

I agree I meant a plan to starting my agency so that I don’t get distracted chasing every products I am thinking

P & C into L & H into investment over a course of 20 years

We seem to be in the same situation and you are very well planned out!

 

[tribetime32]

Hi Guys first post, so please excuse me if I mess anything up I don't have a complete understanding of terms yet. So let me start off by saying I have 0 experience in insurance but I do have a lot of love and passion for finance, banking, investments, and insurance so everything I know right now is from research and books!

I am currently 20 years old finishing my 2nd year at community I originally wanted to go into Corporate Finance, than switched to Financial Planning, but now have a really big interest in Insurance with particular end focus of opening my own agency. So I will be finishing my third year of community in Spring of 2020 and than transferring to a state school in LA, California with a major in Finance with a focus in Insurance/Financial Planning depending on the school that I get accepted into. I realized that since my end goal is to own my own that private schools will provide little benefits other than networking to a certain extent since I don't plan on going the traditional corporate route.

I have had 3 years of work experience at Trader Joe's which is a pretty respected grocery store I currently make 16.8 an hour with some awesome benefits but I would really like to start get some experience working at an independent agency.

My plan is that in Fall of 2020 I will start the process of getting my property and casualty license and than starting in the spring of 2021 I will look for a brokerage hiring entry level insurance position I want to serve three years there so I can get a good idea of all aspects of the ex software, the expectations, and things to avoid/do.

In which 2024 once I have graduated from school I will set out on building my own agency with whatever comes my way but my end goal is to deal with mostly small businesses in the area. Now I am assuming a 10% average commission I know this varies but I am just using this to keep numbers clean, my plan is to hit 3,000,000 in premiums before I take on any staff would it be best to bring on a CSR (They are the people that service right?) or another sales agent?

After my business is sustainable I want to acquire another small book of business of P&C to help expand and build my book so that I can eventually switch from a cluster and get my own direct appointments. I would like to eventually build an Eco system and offer Health/Life and build a financial services/planning part to my business again easier said than done I understand this is all very difficult and chances of failure are high but please humor me.

Some questions!

1) I have done some research and this is the monthly expenses that I have come up with for a one man agency, I was hoping if people could poke holes in this estimate!

Office Expenses
Rent $ ???
Website $40
Cluster $800
Internet + Office Phone $80

Total Office $920

Software
Pipe drive $100


Insurance
E & O $??
General Liability $50
Workers Comp $30
Business Loan
Total Monthly Insurance $130

Grand Total $1,330

This doesn't include Rent/ E&O Insurance, I was wondering if somebody could give me a ball park number for a new agency on E & O!


2) What does compensation look like on average?
I am just gonna assume that it is 10% for property and casualty will it get smaller each year? I have noticed that there is a difference between renewals and new business which I guess makes sense, but I have also noticed that people have mentioned receiving a "profit sharing" or "bonus" from the companies based on various metrics is that a flat amount or a percentage of premiums as well.

3) Does health and life commissions work the same as P&C?
Is it all just a monthly amount or is it a one time payout? I have heard these commissions are quite higher so I assume there is some cons that come with them other than the fact they are harder to sell?


3) For you Agency owners what are things you wish you knew/planned for?

4) When Compensating agents what do you provide them with? Hourly with Bonuses? Or Just Purely Commission?

5) Are The insurance designations worth getting?

Thank you all for reading!
Any advice is welcome, please don't feel obligated to answer all of them!

Sincerely,
Mikey R

Mikey I would simplify this. Sounds like you’re a sharp dude. Insurance is simple. Not easy, but simple. If you can connect with people in a way that is meaningful to them and genuinely have their best interest at heart you will be fine.

Question...

Would you rather pay to learn, or GET PAID to learn?

You don’t need a college degree to make money doing this. If you feel a degree is non-negotiable and would be the most effective thing, I say go for it.

I would venture to say a vast majority of insurance agents don’t have a degree in finance. In fact, my biggest regret financially is that I went to college to get a degree I never used.

I know several guys in their early 20’s who make multiple six figures a year, and as a guy in my 20’s I haven’t done so bad either. You will make it if you think you can.

Best of luck!

 

[rousemark]

Mikey I would simplify this. Sounds like you’re a sharp dude. Insurance is simple. Not easy, but simple. If you can connect with people in a way that is meaningful to them and genuinely have their best interest at heart you will be fine.

Question...

Would you rather pay to learn, or GET PAID to learn?

You don’t need a college degree to make money doing this. If you feel a degree is non-negotiable and would be the most effective thing, I say go for it.

I would venture to say a vast majority of insurance agents don’t have a degree in finance. In fact, my biggest regret financially is that I went to college to get a degree I never used.

I know several guys in their early 20’s who make multiple six figures a year, and as a guy in my 20’s I haven’t done so bad either. You will make it if you think you can.

Best of luck!

Even though degree is not necessary, education is never wasted.. And, there are career paths in the insurance industry where degrees are beneficial. It all depends upon what a person wants to accomplish by the time it is all said and done.