Archive for August, 2010

Question: I want to start my own auto home & life insurance agency with no experience. Where should I start?
Info on where I get information on how to start an agency and get an understanding of the business? Specific offices or offering are acceptable.
(home life insurance)

Best answer:

Answer by mbrcatz17
You’re going to hate this answer, but it’s the truth.

Start by getting a job with an agency, as receptionist or CSR. Honestly, with NO experience, you have NO idea how the whole insurance/agency system works, or even if you’re going to like it. If you work for someone else for a couple years, you’ll learn the ins and outs, make valuable contacts, and have someone paying YOU to learn how to solve problems.

If you don’t want that, you can always contact State Farm, Farmers, or Allstate, and see if they’ll sign you on as a captive agent. Then you have to self study, pass the tests, and go out and sell – you don’t get paid, unless you sell – it’s straight commission work, and the “mentoring” isn’t nearly so strong as it is if you’re working for someone else. Plus, there are more up front costs, such as YOUR liabiltiy and E&O insurance, office supplies, etc, so you’ll need some cash to start up. And if you hate it, you’re out the cash. If you’re starting your own office, you need to work 60-80 hour weeks at first, just to scrape by. If you’re good, and work yourself that hard, you *might* make $ 40,000 the first year. Just enough to keep afloat.

95% of agents wash out the first year. If you either can’t sell, or don’t want to put in those kind of hours, you’re going to wash out. Business doesn’t come to you, and getting leads is HARD.

That’s why I recommend working for someone else for a while.