yet another newbie

[lookin4abetterwayinpa]

hello all,
my name is Todd, and I have decided that I am going to change careers into the L&H insurance field. I am studying now and plan to take the PA state test in June. I guess my biggest issue is whether to go "captive" or independent. I have heard arguments for both sides of the coin, and I really guess it comes down to what I feel more comfortable with. However I do have a wife that is used to not working, and two small children who need to be provided for. Not that I am in any way making a killing now, a little over 50k last year, but it is what we are used to. I am used to working a 40 plus hour week and have been in sales for about 10 years. Is it realistic that I can amintain that type of income or more during the first year, while getting my feet wet? Any help will be greatly appreciated, tahnk you.

 

[STIBROKER]

However I do have a wife that is used to not working,....

she is going to have to get over that......

 

[djs]

Is it realistic that I can amintain that type of income or more during the first year, while getting my feet wet? Any help will be greatly appreciated, tahnk you.

The first 6 months to a year will be tough. This is very much a get rich slow type of scheme. If you have the savings to get through 6 months, and the drive to survive, you'll do okay.

It takes a while to build up some business, to learn the products, and to be comfortable with the sales process. You can get there, but getting going is hard.

$50K first year is achievable, just it's a bit backend loaded, unless you can get an advance contract, rather than an as-earned. Also, first year, you have no renewals.

I don't know PA rates, so change the numbers accordingly. Figure you sell 5 policies a month for the first year (you can easily do better). Each policy earns an average of $700 commission per year, or $58.33 per month per policy (first year). The first month is 5 * $58 which = not a lot of money. Second month is 5 from the first month + 5 from the second month = still not a lot of money, but getting better. This keeps going on for the year.

If you can get an advance contract (depending on how the advance works), you can probably get most of the 5 * 700 each month = $3500. $3500 X 12 months = $42000 for the first year.

Keep in mind, you can write more than 5 health policies a month, pretty easily. 2 to 3 a week is a bit more the norm, but it's harder when you start.

Also, you'll have some expenses to cover as well. This can cut into your earnings.

Second year is much easier. I understand the 10th year is even easier

Getting started really does require some help from another income source. i.e., spouse working.

Dan

 

[lookin4abetterwayinpa]

Thank you Dan,

I sincerely appreciate your honesty. Basically it is as I thought, make it thru the first six months and the career is yours. If I can make $3000/ month for the first six months, I can work with that. I will have to change some things around, but I think it will be worth it in the long run. My main concern was starting out doing nothing and not giving this a chance to build, but you have changed that. Thanks again.

 

[GreenSky]

You might consider having your wife telemarket for you. If she is willing, the "ramp-up" will be quite a bit faster. Plus you can build a business together so she'll get more in the divorce.

Rick

 

[lookin4abetterwayinpa]

Rick,

I thought about having her tied into the organizational aspect of it, she is very uptight about those type of things. I don't think she would last more than an hour as a telemarketer, but i do ty for the advice. As far as more money for her in the divorce, now that was just downright funny>

 

[arnguy]

Welcome aboard, Todd. GO FLYERS! I am from the Philly suburbs.:bump:

 

[djs]

Basically it is as I thought, make it thru the first six months and the career is yours. If I can make $3000/ month for the first six months, I can work with that.

Couple of things....

It's more like if you can make it through the first 3 years, the career is yours. In many cases, people say 5 years. It is very easy to burn out in the early going, and if you don't have the financial support to step back for a week everyonce in a while, it will wear on you. After a few years, the renewals, or the pay as earned, will carry you through a week off, or a month of slow time.

Bringing into your personal checking account $3000 for the first 6 months is acheivable, nobody will guarantee it, and it actually is tough to do. Your first 2 months will be an extreme challenge. From that point on, it starts getting easier. You will definitely miss on some months.

Also, make sure you understand an advance contract. You get paid commission for money the carrier has not yet received. If the policy lapses, you will have to pay the commission back. There is nothing wrong with taking advances, just be prepared to have an occasional dip in income when the balance is taken back from you. I'm not sure if in PA an advance contract is available, you'll have to check around.

Dan

 

[CHUMPS FROM OXFORD]

Welcome and I'm another long-term Flyers fan!

Beat those Pens and stop Crosby!

 

[lookin4abetterwayinpa]

Thank you all for the welcome.

The pens, flyers thing, well we shall see. Growing up a sports fan( not just a steeler,pirate, penquin fan) i think it will be a good series. Since the pirates refuse to pay anyone with talent it seems, and the steelers realistically will have a "rebuilding year", the pens are all I have to go on for right now. But if you are in any way a hockey fan, no matter where your loyalties are, you have to admit, the pens are 1 hell of an exciting young hockey team. Still a little chapped about the games being on vs, but I can't change that so why complain.