What would you do differently if you had to start over?

[AAyub]

Hi Everyone,

Currently I'm looking at entering the insurance industry as a producer. Till now I've been busy making a career in a field adjacent to insurance and working with agents (specifically for insurance products targeting seniors.)

But lately, I have wondered if the grass is a bit greener on the other side regarding building an agency. I'm not looking to leave my current role but want to start building an agency/ book of business on the side and see where it goes.

I'm navigating prelicensing at this stage, but I plan to have it done by the beginning of 2024. I am still a bit unclear on how it goes after that (it seems like I pick an FMO to go with and start down the road), but that will become clearer once I am closer to being licensed. I'm fairly confident I'd be able to get in front of people and help them out once I am ready to start marketing.

So my question is, what are some pitfalls you wish you had known about when you started?

In my ideal scenario, I would be out in the field building it myself until I reach a point (maybe 10-12 months in) where I can hire someone to sell and then move to a role where I am doing less selling and more making sure my team/agency can be successful. I am not sure if that is a pipedream for someone new to the industry however.

I appreciate any input!

 

[somarco]

In my ideal scenario, I would be out in the field building it myself until I reach a point (maybe 10-12 months in) where I can hire someone to sell and then move to a role where I am doing less selling and more making sure my team/agency can be successful.

That's a rather aggressive move in such a short time.

The biggest challenge a new agent faces is having enough people to talk to. The same would be true for anyone you "hire".

How do you plan on generating a pipeline for yourself in 10 - 12 months plus turn it around at that time and double your pipeline so there is enough for both of you?

 

[Cornelius]

Read the FMO contracts a few times to understand them the best you can. Next understand the business is business..

 

[fed up]

Why don't you team up with another agent for a bit and share your "leads" as you continue in your current role until you have a firm base of clients (like, 3 years from now). Split the commissions until then and branch off your business to your own agency?

 

[Newby]

That's a rather aggressive move in such a short time.

The biggest challenge a new agent faces is having enough people to talk to. The same would be true for anyone you "hire".

How do you plan on generating a pipeline for yourself in 10 - 12 months plus turn it around at that time and double your pipeline so there is enough for both of you?

Plus build up the finances to not get wiped out of the business when the down line walks away from their chargebacks.

 

[AAyub]

That's a rather aggressive move in such a short time.

The biggest challenge a new agent faces is having enough people to talk to. The same would be true for anyone you "hire".

How do you plan on generating a pipeline for yourself in 10 - 12 months plus turn it around at that time and double your pipeline so there is enough for both of you?

Primarily through seminar marketing (educational events) and as a longer-term play - optimized local search results.

In an ideal scenario I'd work with an FMO that provides marketing dollars from day 1. And eventually try to get some marketing money from healthcare companies and even try to get in with providers like Oak Street Health to scale it up over time.

 

[AAyub]

Why don't you team up with another agent for a bit and share your "leads" as you continue in your current role until you have a firm base of clients (like, 3 years from now). Split the commissions until then and branch off your business to your own agency?

I do like the sound of this. I understand there is more than one way to skin this cat but I am not sure how this could look on paper. Would it be necessary to get in with the same FMO/upline as the agent I'd be partnering with?

 

[goillini52]

I understand there is more than one way to skin this cat but I am not sure how this could look on paper.

[EXTERNAL LINK] - How Many Ways Are There to Skin a Cat? We Asked Some Cat-Skinners

 

[DHK]

I do like the sound of this. I understand there is more than one way to skin this cat but I am not sure how this could look on paper. Would it be necessary to get in with the same FMO/upline as the agent I'd be partnering with?

Yes and no.

The 'yes' comes from the insurance company itself, not the FMO/upline. Some companies won't let you split the commissions from the application if both agents aren't with the same upline. However, other companies will. It just 'depends'.

However, the 'no' comes in where you can always split commissions, but they may just send you a 1099 and write you a check if it cannot be done on the application... or YOU will send THEM a 1099 and write them a check for the agreed upon commission split.

 

[somarco]

n an ideal scenario I'd work with an FMO that provides marketing dollars from day 1. And eventually try to get some marketing money from healthcare companies and even try to get in with providers like Oak Street Health to scale it up over time.

When I started on my own there was an individual who wanted to fund my business but I declined. He wanted half my business in exchange and that was something I did not want to explore.

Another promised free leads in exchange for lower commissions but the free leads petered out after a few months and the quality diminished. When I decided to call it quits with him he threatened to sue me for breaking the contract until I pointed out to him that he broke it when he failed to deliver as promised.

Any time you want someone else to fund your business it comes with a price . . . there are no free lunches. It just depends on how long you want to be indentured and for how much as to whether it is workable for you or not.