Totally new- being recruited by farmers

[davidslc]

Hi everyone,

I just joined as I only recently decided that I think insurance sales may be the route for me. I've been in a completely unrelated field for many years and for a variety of reasons feel it's time for a change.

I have a couple of questions that I'm hoping all you insurance gurus can help me with. First of all, I keep reading nasty things about Farmers. I have an interview with them coming up. Is this a group to avoid?

Second, I realize that it's a personal choice, but I could use some advice on captive agent v. independent. If I were to make the choice, I would be independent, but I don't know what I'm doing yet and need training, which seems to be offered to captive agents. I also have a baby on the way and can't be without income for too long, so if they can offer me direct advice that might be good.

Third, does anybody have ideas on who to get started with in the Salt Lake City area?

Thanks everybody!

 

[InsuranceSolutions]

I would ask your dm, if you could speak with the two best performing agents who have been there for 4 years or less and also speak with 2 struggling agents. I think that in any recruiting situation, all you hear is sunshine and roses.

 

[davidslc]

That's really good advice. Thank you so much- I'm absolutely going to do that. I mean- I'm excited about the possibility, but fairly sceptical.

Another question- I had my first interview with them yesterday. They told me I would be meeting with the DM, although I ended up meeting with some assistant (which may mean nothing, but I always find it sketchy when people tell you you'll meet with one person and end up talking to someone else). They want to set up the next meeting (supposedly actually with the DM) and include my wife. I have no problem with this- but is this an odd practice? Why do they do this?

 

[djs]

It's good they want to include the wife. If gives her a chance to ask questions and to make sure she will support you in this endeavor.

Remember, you are starting a business of your own, something like a franchise. You are not an employee, having your wife sold on the concept will help you in the long run.

An agents pay (especially with captives) is somewhat strange. If you try to explain it to your wife, she'll have questions that you won't get correct. It's good to let her have the opportunity to understand how this works. This is especially true if you need a paycheck, because it might be slim for a while, you'll need her support to keep going.

Dan

 

[OHInsAGNT]

That's really good advice. Thank you so much- I'm absolutely going to do that. I mean- I'm excited about the possibility, but fairly sceptical.

Another question- I had my first interview with them yesterday. They told me I would be meeting with the DM, although I ended up meeting with some assistant (which may mean nothing, but I always find it sketchy when people tell you you'll meet with one person and end up talking to someone else). They want to set up the next meeting (supposedly actually with the DM) and include my wife. I have no problem with this- but is this an odd practice? Why do they do this?

I would say you need to think about your ability to sell your way to the income you need. Starting out as a property and casualty agent is a VERY slow income building process. I couldn't make it if my main business were auto and homeowners insurance. I offer it to my customers in life, health and commercial, as well as friends and family. It is more a courtesy that I provide my advice and assistance and also a means to keep them more closely involved with me as an agent than a primary income stream. Don't let them sell you that their life products are strong. I doubt it. Your average P&C commission at 10% captive will be appx $100 per customer. So, if you need to make $50,000, plus $20,000 to cover expenses, you'll need 700 customers year 1. That's 3 per business day. The company will give you products, but few leads if any. Do you think you can pull out 3 sales a day?

You'd be better off starting out as an independent Life and Health agent. But, you need about 6 months income in the bank to learn the business and get going.

 

[InsuranceSolutions]

Ask yourself, If I were to be able to sell for only one company for the rest of my carreer, would it be Farmers?

I think that in todays market I feel like there is a lack of control with any captive agencies. You are at the mercy of the upper management who are trying to keep the shareholders happy. If their product tanks, so does your business. There is no way to adapt to a change.

 

[davidslc]

Thanks everybody for all this advice!

So this is beginning to sound like a really bad deal. I have not yet met with the DM, and I will see what he has to say, but I'm left with two questions.

First, one of their big selling points is that most of their beginning agents continue working their current positions- and I have a very secure, consistent income in my current job. It seems that the chance to work in the field, get my certifications, and get some sense of what I'm doing without leaving my current job is a good deal. But is it realistic?

Second, if P&C and auto is a bad place to start, what would be a better place to start? Should I be looking into health? Truthfully, I know a whole lot more about how health insurance works.

I guess that leaves me with a third question- would it be possible to start independently dabbling in insurance sales while maintaining another job until I'm familiar enough with the process to actually have a solid income?

Thanks for all the advice!

 

[patch36]

They always want to meet with the wife. They have to sell her on the concept of starving for 3-5 or more years...

P&C is not something you can dabble in. It takes a storefront and regular office hours. If you want to work as an independent and ease into the business look at life and health related lines.

The DM is the most worthless position in the insurance heirarchy. I could be wrong, it could be his boss.

Oh, I was a Farmers Agent. I hit all my numbers, have the trophies and plaques, and saw that I was going to starve for years. I quit, paid off my advances with my first month commissions after going independent. I got some training from Farmers, but have never sold a P&C product since. I give the business to a former fellow agent and ask nothing in return. There is not enough commission generated to expect anything in return.

 

[InsuranceSolutions]

I think that the only way p&c is worth while is if you are selling commercial and workers comp. There is a ton of service work in personal lines p&c.

 

[rundowner]

Here is my experience with Farmers. I was hired with 5 other people at the same time frame. There were training meetings every week that lasted all day, they were very informative. To make a long story short... In the end, the only people that seemed to be on their way to at least have a start in seeing some success are those that knew alot of people. alot. One had a car dealership and therefore had hundreds of potential customers, the other was from another agency. It seems that they wanted all the new people to get all the people they knew, family, friends, etc. and write their auto/home. They never said to buy their leads from them, but that is what you have to do, that is what the veterans do. So, if you don't know 100 people to sell to right away, and you don't have a couple hundred a week to buy, then you are not going to make it. It is a numbers game, You have to try to sell to 100 people to sell a few policies day in and day out. So, the game is to find 500 people a week , somehow. If you do, then you have a chance, if not, then forget it.