How to buy an Allstate agency?

Message Author
ampm-bookmark
delicious-small Add to delicious
yahoomyweb-small Add to YahooMyWeb
blinklist-small Add to BlinkList
PostPosted: Tue Jul 29, 2008 9:37 pm   Post subject: How to buy an Allstate agency?  

Hi Folks, I'm entertaining buying into an existing book of business and starting out as an allstate independent agent . I have over 20 years of sales and marketing experience but no insurance related experience at all. So I'd be starting from scratch licensing and all.



Can anyone give me their opinion of this opportunity, company what I should watch out for?



Thanks in advance. Very Happy

Bradr
New member
Leave a quick message



Joined: 29 Jul 2008
Posts: 1


2.46 Dollars($)

PostPosted: Wed Jul 30, 2008 6:14 am   Post subject: Buying an allstate agency would give you an edge over others  

Hi Brad, welcome to ampminsure Smile



IMO being an allstate independent agent certainly has some advantages. There are a lot of things that you must know before buying an allstate agency and after, just hang tight, mate. the experienced agents of this board will soon rush to your help.

simon
Senior member
Leave a quick message

simon

Joined: 28 Sep 2005
Posts: 544


93.73 Dollars($)

PostPosted: Wed Jul 30, 2008 8:39 am   Post subject:   

Starting as an allstate independent agent without any prior experience in the insurance industry may pose some difficulties before the aspirant. Selling insurance is not similar to the other sales jobs. The understanding of the local market along with the product knowledge is very important to achieve success as an agent. I'd request you to evaluate all the aspects before buying an allstate agency very carefully .

RupertWBradson
Senior member
Leave a quick message

Rupert W Bradson

Joined: 05 Jul 2007
Posts: 692


131.44 Dollars($)

PostPosted: Wed Jul 30, 2008 8:53 am   Post subject:   

Are you truly aiming at buying an allstate agency now? You must understand this fact very clearly that as an allstate independent agent , you'll not receive any fixed remuneration, but commission. And for that you have to keep-on generating sufficient business, otherwise you may lose the agency status. However, the advantage of being an independent agent is that, there is no limit for earning, if you're good you can magnify your earning to any extent. Best of luck!!



Regards,

Juanita

Juanita
Moderator
Leave a quick message

Juanita

Joined: 04 May 2007
Posts: 737

Location: Idaho
137.60 Dollars($)

PostPosted: Mon Aug 04, 2008 7:09 pm   Post subject:   

Brad,



Welcome to ampminsure.



Your sales and marketing experience will help you in buying an allstate agency and in becoming a successful agent with them. But you will still need training on insurance and marketing support.



Ask questions about the amount and type of training that Allstate will provide to you for being an allstate independent agent.



It would not hurt to interview at a few other companies so you can judge the different options. You are making a big decision so it is good to be able to compare opportunities.



The disadvantage to signing up with a company like Allstate (or State Farm, Farmers, etc) is that you can only offer thier products. I was an agent before I became an independent broker and it always bothered me that I could only offer one company's product. But the experience and training as an agent helped me quite a bit as a broker.



A couple of important things to consider are: How much do you have to invest? How restrictive is the contract if you decide to leave AllState? Will you be given clients and how much income can you make from that?



Feel free to ask questions here. I'll do my best to help and I'm sure others will offer thier experience as well.



_________________

I am an insurance broker from Ontario licensed for all types of insurance.



Please visit my site: www.canada-insurance-source.com
OntarioBroker
Preferred member
Leave a quick message



Joined: 09 Jun 2008
Posts: 107

Location: Ontario, Canada
34.86 Dollars($)

PostPosted: Sun Aug 24, 2008 1:17 am   Post subject: starting a exclusive agency  

I have also entertained the idea of starting an Allstate agency , I have licenses in place and have over 10 years experience. The reason I want to be an Allstate agent is the opputunity to own my own business and unlimited earning potential.Also they have education,training and office support provided. I'm just worried the goals that will placed will be overwhelming. I did some research over the internet and read about some scare tactics used by Allstate in other states. Can someone advise ??


_________________
Register Now to have your Insurance queries solved.
csragent
Guest







PostPosted: Sun Aug 24, 2008 2:26 pm   Post subject:   

IMO it is best to get the knowledge and training in the insurance industry before buying an allstate agency or any other agency for that matter. I too have over 15 years of sales in the financial industry. I am working for a capitve agency now and there is alot to learn. I am gaining all the knowledge and training I can.

I know my boss has high goals in each product that must be met to maintain her status and receive certain marketing money.

I love the work, I love sales but the insurance industry is a whole new world.

lisar1208
Forum Expert
Leave a quick message


Forum Expert

Joined: 29 Mar 2008
Posts: 125


26.52 Dollars($)

PostPosted: Sun Sep 28, 2008 3:43 pm   Post subject:   

I am an Allstate agent and would be more than willing to answer any questions regarding buying an allstate agency these days. I can do it here or via private message.



I looked into several companies, and independent, before making my choice to go with Allstate. Every company has "requirements" but the advantage I found with Allstate was that theirs were quite reasonable. You have to work hard - but that is just how it is - doesn't matter who you work for.



Computers, phones, internet connection is all provided by the company. You simply can't beat the advertising support either. You are also allowed to do advertising on top of what the company provides.



The list goes on and on.



Ask anything you want and I will do the best I can to answer.



_________________

Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
LifeIsGood
Senior member
Leave a quick message

LifeIsGood

Joined: 22 Sep 2008
Posts: 574


1.30 Dollars($)

PostPosted: Sun Sep 28, 2008 4:49 pm   Post subject:   

Hello, Are you a captive company or do you have the ability to write for other companies too? What are the challenges one should expect to face while buying an allstate agency or similar agencies?

How long does it take to make decent money?

lisar1208
Forum Expert
Leave a quick message


Forum Expert

Joined: 29 Mar 2008
Posts: 125


26.52 Dollars($)

PostPosted: Sun Sep 28, 2008 5:02 pm   Post subject:   

I am captive..chose to be that way. I purchased an existing book so I began "making money" immediately. Of course, there are bills to pay but...there was incoming cash flow from the first month on.



_________________

Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
LifeIsGood
Senior member
Leave a quick message

LifeIsGood

Joined: 22 Sep 2008
Posts: 574


1.30 Dollars($)

PostPosted: Sun Sep 28, 2008 5:18 pm   Post subject:   

I was asking because some of the Allstates in my area write for progessive, farmers also.

I guess I was trying to figure which is better, Allstate, State farm or Nationwide.

What would you say a normal 1st year salary would be for a agent?

lisar1208
Forum Expert
Leave a quick message


Forum Expert

Joined: 29 Mar 2008
Posts: 125


26.52 Dollars($)

PostPosted: Sun Sep 28, 2008 8:52 pm   Post subject:   

Just like an allstate independent agent - there are agents with other companies. Many times you will find this in smaller towns (but not necessarily limited to that).



Normal first year salary? That depends on too many things. If you start "scratch" (do not purchase a book of business - zero accounts/policies when you open the door) - there is a good possibility you won't have much of a salary the first year. But that also depends on how much business you can bring in. Buying a book of business will produce more initial income, but you have more expenses too.



You will definitely make more if you buy a book of business than buying an allstate agency and starting from the scratch.



_________________

Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
LifeIsGood
Senior member
Leave a quick message

LifeIsGood

Joined: 22 Sep 2008
Posts: 574


1.30 Dollars($)

PostPosted: Sun Sep 28, 2008 9:34 pm   Post subject:   

I was thinking of buying an allstate agency for quite some time. Now I see, I am looking at a book of business and I'm not sure if it is a reasonable deal.

Both him and his wife have an Allstate business and they are combining it and he is selling his book of business.

The book of business consists of about 1400 clients.

lisar1208
Forum Expert
Leave a quick message


Forum Expert

Joined: 29 Mar 2008
Posts: 125


26.52 Dollars($)

PostPosted: Sun Sep 28, 2008 9:50 pm   Post subject:   

PM to me: Annual premium, retention, loss ratio, how much of book is personal lines compared to commercial lines.



Also, have you already been approved by Allstate? I guess these are some vital points that need to be addressed while buying an allstate agency these days.



_________________

Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller
LifeIsGood
Senior member
Leave a quick message

LifeIsGood

Joined: 22 Sep 2008
Posts: 574


1.30 Dollars($)

PostPosted: Tue Nov 25, 2008 2:45 pm   Post subject: buying an existing allstate agency  

looking into an est agency with about $1.4mm in premiums, 51% lr and 86% retention. I think he's asking $350,000 which i think is too much---started agency about 6 years ago and built it up. Thoughts?


_________________
Register Now to have your Insurance queries solved.
anonymous5
Guest







Quick Reply
Your Name
Subject
Message body
All times are GMT
1, 2, 3, 4  Next  
Page 1 of 4


Get a Quote
Ask Community Experts

flash plugin

Quick Links

Must See

Community

Hot topics in forums

Latest in blogs

AmPmInsure on Facebook



Page loaded in 4.110 seconds.