Second generation agent advice needed.

[alexkh]

Hello agents!
This forum is very useful and I learned a lot over the years. Thank you to everyone who takes the time to read this post and provide valuable feedback.
I am a solo agent started with Medicare, added life and health and service P&C for existing client. As the agency grows naturally we have accumulated a sizable book of business. My child just finished a high school and after a gap year got licensed in Life&Health.
I would like to help get the child go and develop the business, but it is a wild west. I started at my late thirties and had a corporate experience, while my child is a clear page. I know I can feed clients and see that they are processed well, but I feel like in real life she will have to go out and learn how to fish herself. What would you suggest as a middle road that you saw working. I would not like to scare away at the same time I do not believe in feeding the business. Any suggestions are very welcome and I hope agents in similar situations would find it useful. Please share what tools you think might work like CRM or similar.
Thank you and have a wonderful day!

 

[MichFlor]

Great question @alexkh ! I'm in a similar situation.

 

[marindependent]

There is a great way to grow your agency and grow her skills together.

I would sit her down and explain the overall situation and gauge her interest. Then turn around and assist in getting her employed in another agency - perhaps in a different part of the state, or another state all together, where it wont be as much of a competition concern. State Farm, Independent, anything in your outer sphere of sales. She might be underpaid, massively for those first two years, but she will learn on someones dime and the parent will not have to train her. Meanwhile I would encourage independent study in the insurance industry.

After a period of a few years, you guys can talk about her joining forces and she will have a different view about how agencies can be run. That independent viewpoint - could dramatically scale and help your agency, the one that she might take over in 20 years time.

I have certainly "heard" of this working. Teaching and mentoring your own kid can often be brutal and end poorly. This will allow her to potentially appreciate more, what you have built.

Best of Luck

 

[alexkh]

There is a great way to grow your agency and grow her skills together.

I would sit her down and explain the overall situation and gauge her interest. Then turn around and assist in getting her employed in another agency - perhaps in a different part of the state, or another state all together, where it wont be as much of a competition concern. State Farm, Independent, anything in your outer sphere of sales. She might be underpaid, massively for those first two years, but she will learn on someones dime and the parent will not have to train her. Meanwhile I would encourage independent study in the insurance industry.

After a period of a few years, you guys can talk about her joining forces and she will have a different view about how agencies can be run. That independent viewpoint - could dramatically scale and help your agency, the one that she might take over in 20 years time.

I have certainly "heard" of this working. Teaching and mentoring your own kid can often be brutal and end poorly. This will allow her to potentially appreciate more, what you have built.

Best of Luck

That is a great idea. Will give it some thought. Let's hear some more ideas where we could learn together. I would not ming getting some formal training in addition to hands on experience. Especially with AEP coming in in a few weeks. Thank you for your ideas.

 

[agentinCali1987]

Not a good time to be an agent , the industry will be over before you get anything going .

 

[Yagents]

I'm in similar position w my son.

I once golfed with another father and son, both agents. They went through same process that Marin stated above, of son joining different insurance firm first and it was successful. Son still loves his father and now understands he had to earn the agency inheritance. No free lunch

 

[kgmom219]

I’m 6 months into it.

He’s on a reasonable salary (only after he got his Bachelors), raises are tied to number of people he brings in.

At 500 new households (NOT belly buttons), we evaluate the value of the agency and buyout structure and whatever crap.

This is his 4th quarter. He’s handling all the ACA renewals. Plus a ton of other behind the scenes stuff.

I’m not making him starve. He already did that as a kid.

 

[DonP]

I’m 6 months into it.

He’s on a reasonable salary (only after he got his Bachelors), raises are tied to number of people he brings in.

At 500 new households (NOT belly buttons), we evaluate the value of the agency and buyout structure and whatever crap.

This is his 4th quarter. He’s handling all the ACA renewals. Plus a ton of other behind the scenes stuff.

I’m not making him starve. He already did that as a kid.

I wish you luck . I was bringing my son in but i halted it . I just see no 5-10 yr future in Medicare or aca . We’re seeing the first crack in Medicare funding this yr . Very soon cracks will hit funding in aca as the fraud and ease of signup with no proof have been startling . Once pricing pressures dig in commissions will be cut drastically or eliminated . Just my opinion and I’ll do this till it’s not profitable . But i can’t divert my young son’s path to go down a road that might not be here .

 

[alexkh]

Thank you for your valuable feedback. I believe there will be always a need for an agent regardless the current developments. I just cannot imagine going back to a corporate environment.
What CRM do you suggest to consider for this case?
Do you start your kids working office staff and only when they mature face the clients? Or you just "through in the sea" and let them work it out and build a competitive business next to you? I have another child who expressed an interest but still growing, so I would not like to hand off the agency to the oldest one.
Thank you