Independent Insurance Agent

**frunkasduck** · 02-01-2012, 02:53 PM

Hey there guys. I have been looking a lot into my future and can't figure out what I want to do. I was talking to someone the other day and we started talking about becoming an insurance agent. I still have so much to look into, but is anyone here an agent or have experience in this area? or even know anyone who is an agent? Please give me any advice and tips! thanks!

**GodsStepBrother** · 02-01-2012, 10:00 PM

I have been an insurance agent for 3 years, put me through school. Do not own my own office, but have many friends that do. Did you already pass your test? That would be the first step, get your P&C license followed by your life license. Work for someone till you pick up the ropes.

**frunkasduck** · 02-02-2012, 02:27 AM

I'm not licensed yet unfortunately. I'm still working on all of that! Have you made a career out of it? I heard it's risky in your first few years and don't quit your day job.

**GodsStepBrother** · 02-02-2012, 03:01 AM

No I am not planning on making a career out of it, but yeah it is risky. It really is like you building a pyramid scheme the more people you sell to the bigger your paycheck gets. Every time there policy renews you get paid a percentage.

lgilmore · 02-02-2012, 07:38 AM

In my 24th year. The insurance business has about a 10% success rate the first few years. In other words 9 out of 10 are out of the business by year 3. Right now and actually back then too, people are being told all sorts of success possibilities about a career in this business. But still only 1 out of 10 make it. That's been a pretty consistent number over time.

The insurance business is not one to go into without cash reserves. The agent is the last to be paid for business which could mean 60-120 days from now. Right now the business I am working on (life, health, DI) if completed today, will pay me in April. If you're starting out without some reserves, you've put yourself behind the 8 ball and will have to take on debt. Make sure you are willing to do that or don't start.

This business is a lot harder than any sales manager will tell you. They get paid by getting guys in the door, not by how many stick around. Things a sales manager will tell you are right up there with "of course I'll call you tomorrow."

AVOID any MLM outfits, most underpay and the only incentive they provide is to recruit new people into their pryamid.

**GodsStepBrother** · 02-02-2012, 02:56 PM

Igilmore is right I have seen loads of agents come and go. It is a lot of hard work, but so is everything else. Every time you talk to anyone about starting a business you are going to be met with obstacles. Do your research, work in the business for a while before you take the plunge.

On a lighter note, I know many agents who are doing very very well for themselves. Then I also know a lot of agents who have been in business for a while but are still just mediocre. Just like any other business you will get what you put into it.

**dataz722** · 02-02-2012, 04:09 PM

Don't do it! I have been in insurance for the past 8 years. Personally, I hate being in insurance but without a degree I am having trouble finding another job that would pay at least as much.

Even if you do want to do insurance I would strongly reccomend not jumping into starting your own agency. Go work for someone for a couple years and ease into it.

Jacob_Marley · 02-02-2012, 06:10 PM

Quote:

Originally Posted by dataz722

Go work for someone for a couple years and ease into it.

That's good advice. There's a lot more to running a business than just the product, and you really need to see the inside of the business first.

Any financial business such as insurance or securities etc where you have to establish a "book" of clients requires two things more than anything else ... Work Ethic ... and Activity.
Beyond having a passable level of intelligence and literacy, it comes down to having those two things.

From a practical standpoint, Work Ethic is not just a "workaholic" mentality, though that helps.
It means maintaining a very rigorous level of discipline, and the ability to constantly maintain a level of organization in both your business life AND your personal life. That's a practical definition of Work Ethic as it relates to being in retail finance and sales.

The other item, "Activity" (activity having to do with finding and servicing clients), really just has to do with the numbers. Think of these sorts of business models as a big machine. On the top of that machine is a hopper ... you dump into the top of that hopper bushel-basket loads of activity ... turn the crank on the side of the machine ... and out the bottom of the machine pops your clients and sales. It's very much a "mathematical" relationship. This is how closely sales is tied-to or correlated to Activity.
It also suggests how detrimental a lack of sufficient activity is ... regardless of how unreasonable that level of activity seems in terms of its demands on you.

And of the two, Work Ethic and Activity; it is Activity that is the more powerful ... and the more unforgiving.

Finally ... do NOT go into insurance or financial sales because that's what you are defaulting to as you don't think there are other avenues of employment open to you. If that's your motivation ... forget about it ... and go back to college and earn a degree ... or a different degree. You sleep in the bed you make for yourself.
If you are going into retail finance, do it because you believe in its value and because you have a desire to help others, and if you don't have those beliefs yet, don't start until you find them.

**dataz722** · 02-02-2012, 06:14 PM

That would apply to starting any company. I was more or less talking specifically about insurance. It isn't difficult at all, per se, but there is a lot to learn and cover. Much of it can't really just be taught out of a book or licensing class either.

I am also not sure, but I would be willing to bet that many of the large carriers would not just give a contract to someone that just got licensed and has no experience in the field.

lgilmore · 02-03-2012, 05:36 AM

"I am also not sure, but I would be willing to bet that many of the large carriers would not just give a contract to someone that just got licensed and has no experience in the field."

Actually, you be incorrect with that statement. The insurance carriers know it is a numbers game and if you can breathe, you'll get an offer. They know there's a 10% success rate. So they hire many people who they shouldn't.

Bout the only thing that will keep you from getting hired is a police record or Bankruptcy.