Which is better? Selling Car and Home insurance or Medicare?

[Markthebroker]

Investing in the PC startup or on your X games training?

 

[Allen Trent]

Nice, my daughters fiance rides in events & childhood kid in my neighborhood is Jon Tomac whose son races professionally currently. I didn't have the skills

 

[Markthebroker]

Nice, my daughters fiance rides in events & childhood kid in my neighborhood is Jon Tomac whose son races professionally currently. I didn't have the skills

I don't have the skills either. Sure as hell doesn't stop me from riding, though .

 

[thomasm]

I started with Medicare by day and generated P&C leads at night that I sold for cashflow! Now I write both! I like Medicare best, but P&C is an easier lead to generate. If your cold pitch is decent enough 1 out 10 people you talk to will let you quote them.

 

[Markthebroker]

I started with Medicare by day and generated P&C leads at night

 

[Jason Henderson]

Well, yes and no. You may not need to technically borrow any money to go indy, but you will need to be able to make next to nothing for the first few years. So, unless you are living in a tent, that money will need to come from someone or somewhere. Because I had the capital, I refused to cut my lifestyle while I was building my book. I continued to dirtbike, 4wheel, travel, and bought a new truck and dirtbike. I burned through a substantial amount of money in the process. Well into six figures.

I was assuming a modest lifestyle! Haha

 

[Markthebroker]

I was assuming a modest lifestyle! Haha

Right, but hopefully you have done the math and got the point. Let me run through the numbers for you.

Let's say you have two options. Captive and Indy.

With captive, you have to borrow $120k.

With indi, let's say you don't have to borrow any money. But the first year you make $55k below your normal pay, $30k below normal pay your 2nd year, $20k below your normal pay 3rd year then $10k below your normal pay the 4th year, then $5k below your normal pay the 5th year, then you start to break even.

Both scenarios cost you $120k, and each is a realistic scenario. The numbers play out and disperse the risk differently, but it's going to cost you $120k in both scenarios.

 

[Allen Trent]

Right, but hopefully you have done the math and got the point. Let me run through the numbers for you.

Let's say you have two options. Captive and Indy.

With captive, you have to borrow $120k.

With indi, let's say you don't have to borrow any money. But the first year you make $55k below your normal pay, $30k below normal pay your 2nd year, $20k below your normal pay 3rd year then $10k below your normal pay the 4th year, then $5k below your normal pay the 5th year, then you start to break even.

Both scenarios cost you $120k, and each is a realistic scenario. The numbers play out and disperse the risk differently, but it's going to cost you $120k in both scenarios.

this is the exact math on why most people cannot leave comfy employment to pursue their dream job whether it be a business or selling insurance or selling real estate, etc. not that it necessarily requires a large amount of capital to be spent, but many have not put themselves in a position to be able temporarily live on less to make it through the lean initial years to get rolling, especially when you look at the much increased cost of health insurance & benefits. 20+ years ago, many captives in PC or life would pay or finance you to get through those lean initial years. but today, those same carriers have much smaller profit margins while the potential new hires have an even higher escalating amount needed to cover "basic" living expenses of existing bills, housing, car payments, student loans. much of those "basic" costs didnt exist to the same level 20+ years ago........................but here we are

 

[Jason Henderson]

Right, but hopefully you have done the math and got the point. Let me run through the numbers for you.

Let's say you have two options. Captive and Indy.

With captive, you have to borrow $120k.

With indi, let's say you don't have to borrow any money. But the first year you make $55k below your normal pay, $30k below normal pay your 2nd year, $20k below your normal pay 3rd year then $10k below your normal pay the 4th year, then $5k below your normal pay the 5th year, then you start to break even.

Both scenarios cost you $120k, and each is a realistic scenario. The numbers play out and disperse the risk differently, but it's going to cost you $120k in both scenarios.

I understand the math of it. All i am saying is you don't necessarily need to go get a loan for Indy whereas some captives you will have to borrow large amounts of cash assuming you don't have it. Also if a captive doesn't pan out you are left holding the bag.

My point was also assuming the end goal is to go Indy, in which case the opportunity cost of being at a captive for years to build a book that you don't own rather than go Indy right away is a large nut.

 

[Markthebroker]

My point was also assuming the end goal is to go Indy, in which case the opportunity cost of being at a captive for years to build a book that you don't own rather than go Indy right away is a large nut.

Very good point. I worked for a State Farm agent for a while, then went Indy. That's pretty much the way to go, I'd say.

If you are looking for a long term play, your best bet is look at something other than regular personal lines p&c, captive or indy.