Possibility Of Starting My Own P&C Brokerage

[moeasadi]

How is it only $12/ month? Superior access is saying on average 15% on auto and I'm thinking about $800 for an annual policy at 15% is $120 an app + broker fees so i don't see how I can starve with minimal overhead doing a minimum of 5 apps a week. Please elaborate.

If you can close 5 apps/week from start, you will definitely succeed.

 

[Guest]

I highly appreciate the advice guys and I want the "in actuality" responses. Please understand I am 22 with a comfortable amount of money saved and have no real financial strains so making $800 a week is on the low end but acceptable. In California, it is legal to charge a brokers fee. My plan was to start with just writing auto. It will take a lot of leg work but by law of averages i feel if i can make my phone to ring 25 times in a week (very minimal) i can pull at least 5 apps (i can close). As B2B is my specialty, my main goal would be to move into the commercial industry. That is when i would look to hook up with a commercial broker but to establish a book of business does anyone see anything wrong with just selling auto policies and maybe a few HO's? Also, at 5-10 apps/ week is $800-$1000 a reasonable amount to expect?

 

[Bertolinoins]

Go work for an agency or good direct writer for 2 years. Take the INS and CIC courses. Owning a successful agency was hard enough for me when I knew the insurance side inside and out and had a nice book of business from Day 1... I don't think your current business model is feasible.

 

[ims01]

Raphael,

Your warm market will not provide you with much oppurtunity to learn. You may write an app or two.

Very quickly you will have to put some kind of marketing in place.

Get with an agency that will allow you to work independently through them and that will provide training and support. If you have your L&H license you can make a bigger first year hit by cross selling life insurance to them.

 

[FLInsa]

Go work for an agency or good direct writer for 2 years. Take the INS and CIC courses. Owning a successful agency was hard enough for me when I knew the insurance side inside and out and had a nice book of business from Day 1... I don't think your current business model is feasible.

And that I think is putting it lightly.

I would go a step further and say your business strategy is non-sustainable - unless of course you've 80k to 100k in liquid assets to take you through the first year and are willing to "roll the dice".

 

[Guest]

I'm curious why do you not think it is not feasible for me to to learn on my warm market for like 2 or 3 apps then go out and market directly to clients. Also if you would read the entire post i would not need 80k as i would work directly from home or meeting with clients. I understand the majority of brokers sit back and mail out fliers or cold call and wait for clients to come in. Of course if i did this i would probably struggle to. I intend to approach customers directly either residential or B2B. I know this is the most difficult way to do it but it is also the most reliable as my experience is with B2B sales and I'm an excellent sales man. Now can anyone add anything else to the conversation besides no it cant be done or at least elaborate on why they think its a poor idea.

 

[Norwayguy]

I'm curious why do you not think it is not feasible for me to to learn on my warm market for like 2 or 3 apps then go out and market directly to clients. Also if you would read the entire post i would not need 80k as i would work directly from home or meeting with clients. I understand the majority of brokers sit back and mail out fliers or cold call and wait for clients to come in. Of course if i did this i would probably struggle to. I intend to approach customers directly either residential or B2B. I know this is the most difficult way to do it but it is also the most reliable as my experience is with B2B sales and I'm an excellent sales man. Now can anyone add anything else to the conversation besides no it cant be done or at least elaborate on why they think its a poor idea.

I've got nothing against your plan...I think it would work very well for L&H activity...However I don't think your going to learn all you need on 2-3 apps...Also why are you family and friends going to be the guinea pigs...Come on if you screw the pooch on a prospect you might never see them again big deal find another prospect...Screw up your friends and family and you might quickly become the person everyone avoids.

I forgot how you planned in your initial post to secure appointments with carriers...I would suggest you give some a call and see how they feel about your plan.

The number one reason why people don't think this will work is first your not going to have many if any carriers willing to take on a total newbie agent who not only doesn't have a book of business but has also never written an app, Used an ACORD form etc.

Look I'm in Maine, what you do will not affect me in the least but it could drastically affect you...The license you just got is the first step...In many agencies it is the first step in the process for a new CSR...You want to jump over all that to agency owner...You don't know what you don't know and that will hurt you and your clients.

Best of Luck.

 

[Guest]

Thank you norwayguy. I appreciate the actual answer. Would it be a reasonable deal for me then to approach a current broker in my area and offer to pay them a 50-50 maybe even 60-40 (my way) commission split for access to their carriers, E&O, some training, and the ability to keep my own book of business if i were to generate my own leads? Basically it would be paying someone to start up my own brokerage under theirs.

 

[bree4479]

First good luck to you don't let anyone tell you that you can't do this because with education and hard work it can be done. However Superior is not very good place to start and also you are not going be a Broker, but and independent agent. A broker in most states takes a special license. Not to mention with no experience you could ever start a brokerage. No company will give an agent with no experience a direct appointment. It just won't happen.
Look into a cluster if you want appointments.

 

[nadylime]

Thank you norwayguy. I appreciate the actual answer. Would it be a reasonable deal for me then to approach a current broker in my area and offer to pay them a 50-50 maybe even 60-40 (my way) commission split for access to their carriers, E&O, some training, and the ability to keep my own book of business if i were to generate my own leads? Basically it would be paying someone to start up my own brokerage under theirs.

First off, don't let people tell you it can't be done - It can with enough determination & hard work.

Your idea of approaching a local business is a good one & that's the approach I've been taking. Talk to several & if you can find someone that believes in your business plan you should be able to easily get 50/50 or better.