Newbie's and their questions...

[d's insurance store]

What is it about this forum that attracts aspiring agency operators to think they can post a request for a complete business consultancy to open and operate an insurance sales office?

Many times these newcomers have little or no experience in the field, are unwilling or unable to at the very least work in an agency environment and think that what we do and have done can be distilled into a singular internet post.

And I'm also in awe of those who are desirious of this career path who have absolutely no business experience and have no business plan and think that merely by signing a lease, obtaining some office equipment, hanging out a sign and passing the licensing exam, passing out some fliers, shaking a few hands, paying for a yellow page ad and opening the doors, people will flock to them for all their insurance needs.

I was a newbie once. I ended up in my insurance career quite by accident because I answered an ad to sell life insurance. I was mentored by a handful of people, but my path appeared to have some logical progression, and in no way was I able or qualified to open and operate an agency until I had made a number of mistakes on someone else's dime.

I'm not trying to keep people from entering the industry and I don't fear the competition. But this business is a radically different business from even five years ago and the velocity of change isn't going to dissapate. The survivors will have to have an elevated level of skill sets to continue, and that will come from experience and intuition and the ability to bounce back from mistakes...and the newcomers just don't have that.

The kinds of questions being asked seem to be requests for 'franchise manuals' or a 'job in a box', as if the ability to survive and thrive as an insurance agency owner is just one internet posting away.

Just wondering...

[independent guy]

Wow. I think you're the first person to say this out loud. After 4 years in an agency, I'm just now starting to think I might be comfortable handling things if something were to happen to the principal agent. I can't imagine starting from scratch in this business as an agent. It seems like a horrible idea, which is probably why traditional lending institutions don't want to hand out money to those types. Having said this, I do know some "scratch" agents who found financial backing from a singular insurer, but they had to essentially be "exclusive" agents for the first 2 years. And since they received all their training from this one insurer, they're pretty well brainwashed. And several years later, they're still struggling.

Edit: I'm now reminded of the teacher of my pre-license courses. At the time, I thought he had a very pessimistic view of things when he said very few of us would be successful and stay in the business. Well, 4 years later I understand why. Most people aren't willing to work that hard and they think this is an easy business.

[houstonagent]

I might just have to agree with the fact of how some people think it's really easy to just put a NOW OPEN sign outside a building and start selling insurance. When I first opened up my first office I was struggling to stay open and pay the bills, after a while business picked up and people/friends said "WOW maybe I should open up an agency"

[volstrike3]

Good insurance brokers make it look very easy. I think that is why so many people think they can do it. They see a guy who has spent 10 or 20 building a book of business living a pretty good life and they think it is easy. They don't understand the hard work it takes to get to that point in a career. I have seen my share of MBA's, JD's, CPA's and company people come and go because they thought this business was easy. They knew a few insurance brokers and their acquaintences seemed to make a lot of money and play a lot of golf so they decided to give it a shot. If you look at the failure rates of new producers, this business is anything but easy. Very few people can deal with the rejection and uncertainty that comes being a successful producer.

[CATHIEA]

I agree that there are no easy answers and it seems that at least once a month there is a posting asking for them. I wish there was a magic formula - hell I could have made a fortune as a marketing rep if there were. It takes more than the desire or even an ability to sell insurance to be an agency owner.

People on the outside see the money coming in & think how wonderful it would be to own an agency. What they don't see is that an average day for an agency owner is spent dealing with employee issues, paying bills, replacing or arranging for repair of office equipment, running reports, payroll, commissions, etc. Oh and trying to manage their own book of business so we don't loose touch with the clients who made this all possible. We're also the ones who have to deal with the accounting and collections issues. Be the bad guy when clients don't pay or realizing that writing off bad debt comes off our bottom line. Keep from losing it when someone (even the best producers / CSR's aren't perfect 100% of the time) has unknowingly opened the agency up to an E&O exposure - which now adds training back into the equasion. It's a bit like juggling.

Good or successful agency owners aren't successful just because they are super sales persons -in fact many aren't. A lot of successful producers fail as agency owners because they don't understand this is first & foremost a business and not a reflection on their closing skills - ask any agent who sold Progressive's 6% policies if they made any money - wrote a lot of business but ..... Good agency owners understand that it's important to make a profit not just a sale - which in turn lets them hire more staff, buy more equipment, etc - not to mention pay the rent.

It takes stamina to survive let alone prosper in this industry. Unlike many businesses, ours is ever changing. It's about what you know, who you know and how much you're willing to learn.

[Alal]

To all of you who have replied to this post and praised the original (blogger).

It seems that all of you guys are mad. Why are you guys so angry? If you guys are so elite in your field and are so hard working and know the business, why do you come hear to this forum?

Why do you have a free subscription to this journal?

If you are a experienced broker / consultant / others, why don't you play with the big boys and join the subscription based forum, clubs, organization, etc to discuss your thoughts, it does not cost much you know.

I am sure you could find other forums out there, every industry has its elite members. Stop being cheap and stop coming to this forum for free education.

I guess everybody wants something free and you guys are mad because you probably learned the hard way, old school way, where these new guys are getting answers to what they want at their finger tips.

I have sympathy for people that work hard but not for you guys, with those words that you posted. No respect for any of you.

Grow up insurance addicts, be nice with other guys. Remember when you first started out, those cold calls, those walks day after day, that you made from door to door. The past is the key to the future, don't forget your past.

I dare someone to tell me that they came to this industry with experience. Get out of hear;;;;;;;;;;;;;;;;;. If your not making enough money with your business, let me know cause I will buy you. I just opened up 6 months ago, and yes with new signs on my window and stuff, and I am making gwap ( do you know what that is)

Anyway, I am tired of people talking about how smart they are. Why are you guys so jealous of people who are trying to make something from what they have.

If your not happy about something, don't take it on somebody else. This forum is for everybody OK ladies.

[Big Dog]

First, the original post is something that I've wanted to say for a long time.

Recently, there was a request on how to fill out an Acord application. My first thought was - are you kidding? You don't know how to fill one out? Where'd you get your training?

As to Alal's comments, here's my thoughts. I moderate forums on a computer/IT website. Many of the questions are the most basic in nature. They beg the question - did you do ANY research on your own? It's not a question of being "elite", but more of an issue that many of the questions are almost - trivial.

You'll find that there are many people here that are willing to help. But when, on a regular basis, someone posts - I want to be an insurance agent. Should I work for Allstate or State Farm? Yikes! Do some research first!

[volstrike3]

Alal,

You are new to this forum and new to the business. When you see the same "new agent" questions over and over again every other month you will be annoyed as well. It is not that we are elitists or snobs, we all started somewhere and w all know what it is like to in over our heads. We are trying to save some of these guys from wasting their life savings by jumping in way over their head. Many of the questions they ask lead us to believe they have done very little homework are are not in a position to succeed.

If these guys want to set up a small bucket shop that sells non standard auto with minimum limits, then they are probably qualified. If they want a successful agency that will be around in 10 years, they have a lot of learning to do and I suggest they do the learning and make mistakes on someone else's dime for 5 years. Regarding your 6 month old agency making "gwap", I am glad you are successful but you may adjust your sights a little higher. There are agency owners and producers on this forum that make high six and seven figure incomes.

[racecarlover]

First I concur with all but Alal.

Alal,
I come here to give something back to those who want to learn and strive to be successful in this business. We are not angry, cheap nor elite. I do play with the big boys...always have and was fortunate to get into the business in that arena. You are the one that sounds elitist.
We can come to this forum if we like. The USA is a free country in case you did not know it.
What do you write? What are your 6 month commissions to buy us?
I may not know what gwap means but I do know how to correctly use the homonym hear and here. Evidently you do not. Do you hear me?
I rest my case with big mouth clowns like you.

[Alal]

BIG DOG Wrote

"""You'll find that there are many people here that are willing to help. But when, on a regular basis, someone posts - I want to be an insurance agent. Should I work for Allstate or State Farm? Yikes! Do some research first"""""""""""




That is exactly what I am talking about. When you say do some research, that is what everybody is doing. No disrespect to you big dog, but these other people in this forum need to wake up and smell the coffee. One of forum poster stated that , it's a free country, and your right, that is why we pose questions on forums such as this one.

Don't think about this forum when you go to sleep, it's only a forum.

[d's insurance store]

Well, I must be getting old, because I didn't know what GWAP is...but, with the ability to do a minimum of research and by using the Google tool on the internet, I discovered it is slang (Harlem slang) for Money.

With appreciation to those who've replied, my point remains that somewhere out 'there' is the expectation that in this day and age, it is possible to find out all there is to know about 'anything'...in this case the launching and maintance and success of an insurance agency...with just a couple of clicks of the mouse and a willing audience that will spill forth with pearls of wisdom. Those who congregate here and have succeeded will know that it takes much more than a couple of web postings and answers to get the information necessary to thrive in this, or any other business for that matter.

This is not a free business consultancy and there is no way to adequately answer one who asks for a complete business plan package in this forum. And to expect myself or others to take such a questioner seriously, when in fact they demonstrate their total lack of basic business knowledge in general and insurance business knowledge in particular and approach us with a totally unfocused manner as to suggest they can get licensed, open their doors and immediately succeed without ANY plan is absurd.

Based on our newly minted correspondent, Alal, who by his admission is experiencing wild success in the suburb or Ozone Park, it is we, the more experienced who are failing because we refuse to enthusiastically participate in the folly of dispensing free advice. Well, Alal, I'm very happy for you at this six month marker, and perhaps there will come a time that your commissions will allow you to buy one of our businesses, but my experience was vastly different both at my six month point in my career AND at my six month point of agency ownership. Truly, I wish you nothing but the best, and hope you can continue to bank scads of GWAP while all the while having the time to profer business advice to those too new to know any better.

Cheers.

[pita3333]

As a hiring manager of a successful agency...I can tell you that I am honestly scared for our industry.

The quality of people in this industry is decreasing every year. When I entered some 25 years ago...I was trained and mentored by some wonderful people. Today when I try to train a person they constantly ask me for the answer and get angry when I try to show them the path to the answer. To me the teaching of the path (how to develop the answer, where to look for it, how to recognize it) is greatly more important than the answer itself.

Don't get me started on the work ethic...I may just explode!

I respect those who want to enter this industry, but must remind them...you can not always start at the top! You have to get wet and dirty working in the trenches, and walk the steps that get you to the top. That way when you get there you will have a great deal of respect and even more important the necessary skills to be successful.

[badger]

what struck me the most from your post was how poorly you construct a sentence...express yourself , maybe you missed that from the free info you got in NY, learn how to write a professional response before you talk about $$$$

[sanddog1]

BABGER, your name fits you, or maybe you need some chocolate with your whining. You guys hit the proverbial nail on the head. And who the hell cares about perfect spelling, at this point of time and night. Most of us are drinking a nice glass of wine and participating to improve the agency force by helping the peep's get ahead. AFTER ALL YOU WERE NEW TO THE BUSINESS, AND THERE WAS NOTHING LIKE THIS FORUM AVAILABLE.

[independent guy]

Perhaps we need to come up with a FAQ with the most basic of questions already answered there, and make it a "read first" sticky. Sound like a good idea?