| Message |
Author |
|
 Posted: Tue Dec 14, 2010 2:02 pm Post subject: I want to open an independent Agency. How can I get Agency |
|
|
I want to open an independent insurance agency. How can I get my first agency agreement? How much money do I need to get going?
I'm in NJ. Just got the P and C License and got Trade Name Approval.
I have a sales Back Ground but have never Sold Insurance. I really could use some help. Thanks Art |
|
ArtRitter
New member
Joined: 14 Dec 2010
Posts: 2
1.60 Dollars($)
|
|
| Posted: Tue Dec 14, 2010 9:53 pm Post subject: |
|
|
Well, Art, how are you going to learn to sell insurance? Most folks get some experience working in an agency or for an insurance company. You need to learn products, how they work, what to recommend to clients/prospects, and you need to determine if you are going to act as an agent or a broker. As a broker, you will need to post a bond with the state (in case you do something with someone else's money that you are not supposed to do).
What kind of insurance are you thinking of marketing? If you are entering the Homeowner's/Auto markets, you will waste a lot of time if you don't have multicarrier quoting software, which will cost you big bucks in monthly lease fees.
You have your work cut out for you on this. Might want to reconsider the path to success you are about to set out on.
I'm not deterring you from the business, just from the risk of inevitable failure due to your lack of inexperience in insurance products/sales. A sales background is a good thing, but insurance "sales" is very different than used cars, home improvements, or encyclopedias.
_________________
CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
|
MaxHerr
Moderator
Joined: 29 Nov 2009
Posts: 4622
Location: Pomona CA
209.53 Dollars($)
|
|
| Posted: Wed Dec 15, 2010 5:19 am Post subject: Home Owners and Auto Market. |
|
|
I wanted to be a broker. I don't know all the products. I know how to get the phones to ring. I need to get agency agreements. Any advice. I have a couple hundred thousand saved up to get going for this. Is that enough. My brother sells insurance as an agent and isn't interested in helping me get going. Thanks
_________________
Register Now to have your Insurance queries solved. |
|
Art Ritter
Guest
|
|
| Posted: Wed Dec 15, 2010 8:05 am Post subject: |
|
|
| Quote: | | I wanted to be a broker. I don't know all the products. |
That's understandable, and it's also the reason you should not be attempting what you are on your own. If you can find an experienced agent who will mentor you, then it is possible to do this.
As far as obtaining agency appointments with insurance companies, especially beyond just personal auto and homeowners, you have to approach each company individually, or find an Independent Marketing Organization (IMO) to partner with. Not as easy as it sounds.
Additionally, if you intend to function as a broker, you will need to be bonded.
Having "a couple hundred thousand" is a good start, but it could easily be consumed in two or three years by rent, utilities, taxes/license fees, marketing materials/advertising, and all the other expenses of a business.
Still, I'm not trying to throw cold water on your burning desire. Just trying to point out the obvious. This is not an easy business. But it is fairly simple once you know what you're doing.
Find a mentor or an IMO!! Advertise for one. Check advertising to see if someone is looking. Check out resumes on Careerbuilder.com or Monster.com or some of the more insurance-specific job boards.
Interview carefully, check credentials and references thoroughly, and don't rush to a decision. This person will help you swim or could sink you faster than you might on your own.
| Quote: | | My brother sells insurance as an agent and isn't interested in helping me get going. |
Is he afraid of the competition?
_________________
CA-licensed P&C Broker-Agent and Life Agent. CA Insurance Lic #0596197. Now investigating insurance company abuses, and providing litigation support and expert witness services. Send me your questions, and I'll send you my answers. |
|
MaxHerr
Moderator
Joined: 29 Nov 2009
Posts: 4622
Location: Pomona CA
209.53 Dollars($)
|
|
| Posted: Thu Jan 20, 2011 6:40 am Post subject: |
|
|
having a license to sell insurance in no way prepares you to run an agency. you need to work with a mentor agent for at least a year or two and get experience. Not only do you need to learn insurance products and policies, but how to run an insurance agency as a business, ie. developing a business, marketing, managing employees, cash flow projections and budgeting, sales and lead tracking, customer service, claims, etc.
starting a scratch agency is almost impossible, even with a large bank account. I would suggest buying an existing agency that already has renewals to help cash flow....not to mention it would already have business processes in place you can take over (no need in reinventing the wheel). otherwise it takes about 5 years to build from scratch. you can easily go through a couple hundred thousand dollars in 5 years if things dont go as planned...trust me. It can be very rewarding career if done right...but takes a while to establish. my advice is take it slow and get some experience under your belt and start building relationships. |
|
mbyork
Preferred member
Joined: 24 Mar 2006
Posts: 171
Location: Georgia
30.66 Dollars($)
|
|
