Totally new- being recruited by farmers

[davidslc]

Ok- so I'm not going to ask the obvious question of HOW to get started in dabbling in health stuff as it's posted all around the forums. I am going to go ahead and meet with the DM later this week and find out what specific kinds of insurance he's looking at having me selling. If it's commercial and/or workers comp, I'll give it some serious thought.

However, assuming it is not, what would be a realistic figure for the cost of getting started doing health stuff independently? I obviously need the classes and certification, but are there other early investment costs?

Thanks so much for all the insider tips here!

 

[InsuranceSolutions]

Any word on how the interview went?

 

[motoxxx]

One big difference between being captive vs independent is that the captives cannot represent any other companies. This is fine until your insurance commissioner decides that your company has committed some offense and needs to be shut down. Then you are hung out to dry. This happened to me a few years ago.

WHen you are an independent, you can choose the companies you work for and not all of your eggs are in one basket.

 

[halis]

Lol the DM is not going to tell you Work Comp and Commercial. The DM is going to tell you that considering your unique abilities/special talents/situation you are in a position to do very well with Farmers. Then the DM will say, <start Farmers Borg assimilation program>

Does the DM have a lackey? If so, the lackey will tell you that in 2 years, you'll probably be making more than him, which would probably be true if it were possible to make anything reasonable going this route.

Trust me, it's a joke. You don't have to run, we're all grown-ups here, but go ahead and walk out.

Go independent. Hook up with a local agency and get your feet wet. Start writing policies and learning. By the time you decide to move on, you'll know where to go next by then.

 

[InsuranceSolutions]

I have spent time as a producer for a Farmers Agency, with the arrangement that I would learn commercial, build a book of business and then break away from that agency and have my own Farmers agency. I built a decent book of business, that stopped growing when their rates tanked. In the beginning you are told that Farmers products are easy to sell and competitive, nothing could be further from the truth. The truth is I was faced with a choice of taking my book of business and opening a Farmers Agency, where I could potentially go into a ton of debt and not make a decent living, or start an independent agency. I chose to go independent.

One of the big attractions to Farmers, is that there is a sense of support and security. Talk to an agent who has been around for a while and they will tell you that there is no support, you are on your own. In that case, why obligate your self to only farmers?

 

[insuranceexec]

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.

That is absolutely the best advice I have heard in a while. I have an IMO, Independant Marketing Firm, and specialize in helping new agents get contracted and showing them the ins and outs of the business. My marketing firm covers all lines of insurance and securities, and pay all our agents above street commissions. Now it is impossible for any one person to know everything about all the different products, that is why with my firm I have key people in place that specialize in each particular area. I personally oversee the securities side of the business, as I am an OSJ or series 24. I do on occasion help new agents get an office stared in their particular area. Congrats on having the new baby, I hope all fares well. If you would like some more information feel free to write this forum back. Happy Hunting and Good Luck.

 

[motoxxx]

That is very good advice. I have been trying to find a good P&C company that will let me be an independent and work from home. Does anyone know of any?

 

[insuranceexec]

That is very good advice. I have been trying to find a good P&C company that will let me be an independent and work from home. Does anyone know of any?

SafeCo will help you out in the beginning. I just had a guy try to get signed up through SafeCo here in Arkansas and they would not appoint a new agent at this time because they had an over-saturation of agents in the area already. Your best bet would find an agency locally and try to sign up through them, if the fore-mentioned advice does not work. Happy Hunting and good luck....

 

[halis]

Sign up with a Wholesaler. I recommend Superior Access (sais.com). On the personal lines side, you'll get access to Safeco, Hartford and Travelers, and others, you own your book of business and it's $100/month. They take 0% of your commission on personal lines.

 

[insuranceexec]

Sign up with a Wholesaler. I recommend Superior Access (sais.com). On the personal lines side, you'll get access to Safeco, Hartford and Travelers, and others, you own your book of business and it's $100/month. They take 0% of your commission on personal lines.

I have not heard of them before, and I thank you for providing them too me. I will call them tomorrow and see what or how they can help me.

The problem that I have is that everytime I appoint a new agent under me, the new agent, does not own their book of business. This is alot of times a deterrant for a new agent, who is looking to start on the indy side. Good advice and I will write back and tell you of my experience.....