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 Posted: Thu Feb 12, 2009 2:40 am Post subject: Looking at changing industries |
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Am a pharmaceutical rep with 12+ years experience. Looking at becoming an agent. Is the job mentally stimulating/challenging? Financially worth it? Better to work for an agency or do your own thing?
Lots of questions I know but just trying to make the right decision. Would love to speak to above poster.
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Guest 1
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| Posted: Thu Feb 12, 2009 8:12 am Post subject: |
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Since you were a medical representative for years you may look into the area of health and life insurance. The agent is required to carry license of operation in almost every state. So, that the place to start. Obtain the licensing requirements from the DOI and prepare yourself for the test.
The career of an insurance agent is definitely challenging and financially worthy, but it'd also depend upon the skills of the agent. You surely will get more suggestions from other members, so, pls, hang tight.  |
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simon
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| Posted: Mon Mar 16, 2009 4:11 pm Post subject: |
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Yes. I know a lot of pharmaceutical reps and nearly 100% say that it was “fun” or “glamorous” in the beginning but after that wears off it is like running a bread route. No offense to bread route drivers… If you find the right home so to speak, you will be very challenged. Good luck.
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hlink23
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| Posted: Thu Mar 19, 2009 12:46 am Post subject: allstate or state farm |
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Go independent!
With Allstate you better have 50k to spend getting started and be able to go 12 weeks without pay. You work for them and they can buy your book for 1.5 times the renewals and force you into bankruptcy. On the other hand if all goes well and you build or pay off a 2m book then you will be sitting pretty. Just hire some producers to maintain your growth.
State Farm is a whole different animal. You invest 20k and borrow 25k from them. Doesnt matter how much pnc or life you sell if you dont sell enough banking products then they non renew your contract and you are out the money.
Independent contracts are not perfect but they are better than the above mentioned ridiculousness. Also when you acheive your 2m book you will be drawing 15% renewals instead of 10% with allstate and even less with sf. 5% of 2m is 100k per year! |
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oiuc812nbama
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| Posted: Thu Apr 30, 2009 1:45 am Post subject: state farm |
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i am going to assume that you will need up front money to start with state farm??? Because if so, i am out.
Do they pay you for the "internship" period also?
reading some of these responses scarfes me
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anonymous123
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| Posted: Thu Apr 30, 2009 10:02 am Post subject: |
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| Quote: | | i am going to assume that you will need up front money to start with state farm??? Because if so, i am out. |
What do you mean by that? If you want to start as an independent agent you'd certainly need to make some initial investment and its true with all insurance agencies. State Farm is no exception.
An independent agent would be responsible for searching for his own business. And that would require investment.
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Karen
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| Posted: Thu Jun 04, 2009 2:13 am Post subject: |
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| Quote: | i am going to assume that you will need up front money to start with state farm??? Because if so, i am out.
What do you mean by that? If you want to start as an independent agent you'd certainly need to make some initial investment and its true with all insurance agencies. State Farm is no exception.
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Not what the question asked. The poster was wondering if the captive carriers require you to have a certain amount of money in the bank (liquid capital) before the captive will consider giving you an agency contract, and the answer is yes.
The big 3 all have capital requirements of anywhere between $25 - 50k before they'll give you a contract. They realize that you have to have money to live on when you first get started in this business, and this is their way of making sure that you will be able to take care of your finances while building your business.
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InsTeacher
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| Posted: Wed Jun 10, 2009 1:03 am Post subject: |
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I'm currently in training with SF, and they pay me what I was earning before in my previous job during the 9 month training "internship". When the training is over they give me a $18k signing bonus immediatley then $12k more after 12 months. They will also extend me a $30k line of credit, and subsidize a seperate low interest loan for furniture & office equipment. I am opening a new market office so I will not be getting a book, so they will pay me $11k a month to help me get started for the first 2 years. Then it tapers down to $8-5k/month years 3-5.
The new contract doesn't give as much commission up front as the previous contracts, but as you can see they give you a lot of resources to get you started. Also if perform exceptionally well you can more than double your commission when you get the yearly bonus. This contract is a performance based contract designed to get the agents to perform at a high level from the start.
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anon
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| Posted: Wed Jun 10, 2009 8:59 am Post subject: |
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| Anon, it's great to know that you are receiving supports from your recruiters. However, I'm curious to know whether you have to return any of these favors in the near future to State Farm. |
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simon
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| Posted: Fri Jun 12, 2009 1:03 am Post subject: |
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No, but the initial contract is for 12 months. If you don't perform according to expectations, they could choose not to convert it to a permanent contract. You will not have to pay back any money they gave you, but you are responsible for any loans you took.
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anon
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| Posted: Fri Jun 12, 2009 5:30 am Post subject: |
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Hi anon,
| Quote: | | If you don't perform according to expectations, they could choose not to convert it to a permanent contract. |
Have they explained to you regarding the expected targets?
| Quote: | This contract is a performance based contract designed to get the agents to perform at a high level from the start.
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Would you avail this loan for all 5 years? Or is it that you'd consider it upon your success rate? I'm asking this since you'd need to have enough resources to repay your loans if you're unable to meet the targets..am I right!
Steven |
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steven
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| Posted: Fri Jun 12, 2009 6:22 am Post subject: |
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Hi Anon,
Thanks for the reply, buddy
| Quote: | | If you don't perform according to expectations, they could choose not to convert it to a permanent contract. |
Okay, I think that makes sense.
What's the target they have set for you anyway? Since you are starting from scratch, are you experiencing any problem in getting business?
Apart from the assistance from State Farm what are your out-of-pocket expenses in running the agency? |
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simon
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| Posted: Sun Jun 14, 2009 4:37 pm Post subject: |
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Steven,
The production targets vary based on market & the business plan that I presented to them. They are not unreasonable, but requires you to start producing immediately(meaning "get yourself out there now, no slow ramp up or apprenticeship").
However, the production targets are secondary. The primary focus for SF is that you are running the business in a well organized and ethical manner, that shows potential for sustained growth. There have been a number of agents that produced adequate numbers, but they didn't have their contract converted to permanant because they producing those numbers in a way that SF did not approve of. However unfortunate this may have seemed to these agents, SF has a brand & image they need to protect.
The loans are the agent's responsibility, regardless of success or failure. The agent is not required to take the loans, it is up to them. The loans are usually used for office equipment & furniture. If the agent has the means to aquire them without these loans, they can do so. Most agents taking over an existing book, usually negotiates a pretty good deal with the outgoing agent. New market agents tend to make use of the loans more often. The $30k line of credit can be used for anything, but it is up to the agent to manage it wisely.
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anon
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| Posted: Sun Jun 14, 2009 4:48 pm Post subject: |
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Hi Simon,
I have not yet completed my training, so have not begun producing. In my response to Steve above, I have addressed the targets.
As far as out of pocket expenses, I know agents that had no or very minimal out of pocket, and I know agents that put alot of money into the office and marketing. It is really up to the agent, and what he/she wants their business to look like. The most significant out-of-pocket expense is usually the lack of pay until the business becomes profitable. Most agents rely on their spouse for household income until the agency stabilizes.
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| Posted: Sun Jun 14, 2009 6:33 pm Post subject: |
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Insurance, like any other business can be a challenge to evaluate startup costs. In fact, it's sort of a catch-22 situation. You can try and pull off a shoestring startup in which you barely spend any money on marketing and office equipment, or you can borrow the money and put more money into marketing.
What can be difficult to evaluate is whether you will reach profitability quicker by sinking in the extra money, or if you will become profitable by operating on an extremely low budget. I would caution that if you are going to have clients coming into your office, you want to make sure it has a professional image. The last thing a client wants to see is office furniture that came from their neighbor's yard sale!
I agree that it is very easy to run numbers and project sales figures and say this is how many blah blah blah...but these figures are easier said than done. If you place the focus on doing the right thing for each and every customer, then you will reach success! Good luck! |
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ChrisBantly
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