Well after a long day, I have an opportunity which I find attractive and hard to turn down. Hopefully the voices of experience will be able to provide some direction.
Again here is a little background: I recently obtained my licenses in: P&C, L&H.
Today I went around again looking for an opportunity and came across a "mentor" who is willing to work with me ,but he is specialized in Pensions and Annuities, he has always held L&H only never looked into going the P&C route.
So here is the "opportunity”, he is willing to take me in and teach me his trade in life health while teaching me how to specialize in pensions and annuities.
I feel it’s a great opportunity as I know that he is an expert in this niche, but where my concern is what about my P&C. I want to be able to use this as well; actually he even commented to me that it was very important now of days to use the P&C to be able to get the L&H. However, I asked how he has been able to do this , and he well told me it’s his experience and just of the time hes been around the community that he’s become the "to go to" when comes to annuities and pensions as well as life . Although again he does recommend that I need to find the P&C which unfortunalty he cannot offer as it’s not part of his field.
Well hopefully this explains the scenario I’m in and here is my question. If I should go with this opportunity I’m concern that I may hinder my opportunities to do P&C especially since most of the offers I had received so far came from captive carriers.
Maybe it’s a bite complex but since I’m a rookie , I’m concern that although I feel this is a great opportunity yet even my potential "mentor" has commented that having P&C is necessary to be able to reach clients and is something which he cannot offer to teach since it’s not part of his field.
Again the main concern is since I be with him , it leaves me wondering how I be able to get my P&C training as this set up eliminates captives taking me in.
I was actually blown away as he was so open and even allowed me to sit with him thru a couple of meetings where he finshed the day by closing a 400K annunity where he made what i hope to make in a year(going captive while training). Again he explained to me this is not an everyday occurence but he is able to pull a couple a month.I just loved how he worked and just felt at home nearly forgot that I want to do P&C. Again I know that I wont get that type of cases overnight but just by sitting there I felt as I could envision myself on the other side of those shoes.
He offered to take me in and teach me and he was actually willing to hand me some of his smaller cases sort of to equate to what I was offered by the captives but after that I was on my own .. which I find as amazing yet this gentleman is in his final years of working so he is looking to pass it on it appears.
Just again my concern is what about my P&C or Im being stubborn ? its just that he even commented that its neccesary to have P&C going to get people in.. and well its a whole different set up now of days then when he started and he was fortunate to have been successful without having to do p&C but he strongly believes that p&C is critical to be able to bring in potential clientes for the L&H.
Any help will be appreciated.
AZ Newbie help
Moderators: Josh, independent guy
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scott
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Re: AZ Newbie help
When opportunity knocks, open the door.
Check this guy out. If he is the real deal you have a tremendous opportunity here.
Rhetorical questions - What are your downsides? Why wouldn't you do this?
Check this guy out. If he is the real deal you have a tremendous opportunity here.
Rhetorical questions - What are your downsides? Why wouldn't you do this?
Scott Simmonds, CPCU, ARM
Insurance Consultant
Insurance Consultant
Re: AZ Newbie help
Hes for real, hes been in the business 20+ years.. again my concern is what do I do about getting p&c training?
The opportunity is incrediable its just that even he has stated that having p&c will allow me to be more successful. Here the issue is once being tied up doing l&h, captives wont take me up because of their nature of having to sell their whole product line.
If you guys have any suggestions I appreciate it.... again my concern is if I do take this on which I believe I will.... how do I go out and get the P&C training?
Again I appreciate any input, and understand that even though it would seem everyone would want to open the doors ... people dont want to train a future competitor????..... I even had a guy come out with a 4 year non compete clause which was just nuts as it would mean I would have to move to a different town to be able to sell.
thanks guys
The opportunity is incrediable its just that even he has stated that having p&c will allow me to be more successful. Here the issue is once being tied up doing l&h, captives wont take me up because of their nature of having to sell their whole product line.
If you guys have any suggestions I appreciate it.... again my concern is if I do take this on which I believe I will.... how do I go out and get the P&C training?
Again I appreciate any input, and understand that even though it would seem everyone would want to open the doors ... people dont want to train a future competitor????..... I even had a guy come out with a 4 year non compete clause which was just nuts as it would mean I would have to move to a different town to be able to sell.
thanks guys
Re: AZ Newbie help
If your going independant, do not worry about P&C training. The main carriers hold webinars monthly. You can also get training from the Sales Reps.
If you have any kind of common sense, you will leearn the products quickly as they are easy.
If you have any kind of common sense, you will leearn the products quickly as they are easy.
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d's insurance store
- Insurance Journal Addict
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Re: AZ Newbie help
If you're inclined to want to learn this end of the business...then forget for the time being your P&C issues. Although it's just fine to have both sides of the license equation, the insurance business has become far too complex to be a jack of all trades, especially when it comes to expertise in the pension/annuity field.
The one thing I would caution you about is 'traditional' life insurance sales training was often presented with some minor product knowledge and then throwing the recruit out into the world with a phone book and phone and telling that person to start calling everyone they knew and then start with the phone book, asking about interest in life insurance. It's a VERY tough way to begin and that kind of situation explains why the insurance business is littered with ex life insurance sales people who managed to talk a few of their friends and relatives into buying policies and then getting rejected by anyone else they approached.
If this 'mentor' is truly a mentor, he will not train you and then leave you to your own devices to develop a client list. It's one thing to have been doing that job for a few decades and have a reputation that leads to referrals, and quite another to start out cold, asking people if they want to sink their money into annunities and life insurance. Be very clear about what he will do to help you develop yourself in the business and how he might facilitate the acquisition of leads and your compensation under his direction. It's a whole lot easier to ask the questions and get answers now, as oppossed to later when your assumptions were never addressed.
The one thing I would caution you about is 'traditional' life insurance sales training was often presented with some minor product knowledge and then throwing the recruit out into the world with a phone book and phone and telling that person to start calling everyone they knew and then start with the phone book, asking about interest in life insurance. It's a VERY tough way to begin and that kind of situation explains why the insurance business is littered with ex life insurance sales people who managed to talk a few of their friends and relatives into buying policies and then getting rejected by anyone else they approached.
If this 'mentor' is truly a mentor, he will not train you and then leave you to your own devices to develop a client list. It's one thing to have been doing that job for a few decades and have a reputation that leads to referrals, and quite another to start out cold, asking people if they want to sink their money into annunities and life insurance. Be very clear about what he will do to help you develop yourself in the business and how he might facilitate the acquisition of leads and your compensation under his direction. It's a whole lot easier to ask the questions and get answers now, as oppossed to later when your assumptions were never addressed.
Re: AZ Newbie help
If you accept this 'mentorshop' then you have to rule out the captive carriers. You cannot do both.
The fact is, you should be able to get a contract with a captive company at any time. This opportunity doesn't come along often. You will obtain practical sales training as opposed to product trainging and then told to sell it.
Starting out as L&H is difficult, pensions and annuities usually requires credibility and experience. You can expedite that issue by associating with the 'go to' guy. Give it a whirl, you may love it and forget the P&C side. YOu may hate it and get out, but at least you tried. Then you can join a captive if you see fit.
You will have trouble getting appointments with P & C companies because of your inexperience. It is possible that your mentor contact a couple of IA companies and explain that you are being hired to develop a P&C market within his agency. That way you will gain access to some P&C, gain the knowledge/training of your mentor, and figure out which market is better suited for you.
Compensation of this two avenues is about 180 degrees from each other.
Life/Annuities is a big up front commission with small amounts of residual/renewal income.
It sometimes will take several appointments to make the sale, but usually not as much service work afterwards.
You can make some good first year commissions right away, but you will need to produce each month to keep the income rolling in and it can lead to instability in your income stream.
P&C is much smaller initial commissions and will take a while to build a decent income. The benefit comes in the form of residual/renewal commissions. Each time a policy renews, you get about the same commission as when you first sold it. Over a period of time, these build up to a nice 'base' income and gives you some stability in your income stream. The initial sale is usually fairly quick and easy, however, there is more service work associated with it as people change cars, move, have claims etc.
One isn't better than the other. It's just what are you are more comfortable with and suits you the best. You can be VERY successful at either one. The key to this industry is to establish trust and credibility. ALWAYS do what is best for your client and you will gain that trust.
Best of Luck
The fact is, you should be able to get a contract with a captive company at any time. This opportunity doesn't come along often. You will obtain practical sales training as opposed to product trainging and then told to sell it.
Starting out as L&H is difficult, pensions and annuities usually requires credibility and experience. You can expedite that issue by associating with the 'go to' guy. Give it a whirl, you may love it and forget the P&C side. YOu may hate it and get out, but at least you tried. Then you can join a captive if you see fit.
You will have trouble getting appointments with P & C companies because of your inexperience. It is possible that your mentor contact a couple of IA companies and explain that you are being hired to develop a P&C market within his agency. That way you will gain access to some P&C, gain the knowledge/training of your mentor, and figure out which market is better suited for you.
Compensation of this two avenues is about 180 degrees from each other.
Life/Annuities is a big up front commission with small amounts of residual/renewal income.
It sometimes will take several appointments to make the sale, but usually not as much service work afterwards.
You can make some good first year commissions right away, but you will need to produce each month to keep the income rolling in and it can lead to instability in your income stream.
P&C is much smaller initial commissions and will take a while to build a decent income. The benefit comes in the form of residual/renewal commissions. Each time a policy renews, you get about the same commission as when you first sold it. Over a period of time, these build up to a nice 'base' income and gives you some stability in your income stream. The initial sale is usually fairly quick and easy, however, there is more service work associated with it as people change cars, move, have claims etc.
One isn't better than the other. It's just what are you are more comfortable with and suits you the best. You can be VERY successful at either one. The key to this industry is to establish trust and credibility. ALWAYS do what is best for your client and you will gain that trust.
Best of Luck
Re: AZ Newbie help
d's insurance store makes an excellent point. Pick a field visavis 'specialty' and go with it. It's mentioned that insurance, as well as, pensions/annuties are both complex fields and being a slave to too many masters is dangerous to you and your E&O policy. Lots of companies and people do it (try to do it) - Farmers, State Farm, etc, but how can you really be an 'expert' in so many fields that are so entirely complex in their own respective ways. Choose your discipline, learn it, master it, and be prosperous! Best of luck! 
Re: AZ Newbie help
Sacman has some good advice on the income side of the business. One thing I might recommend to anyone new to the life side is to place all of the commissions you earn into one checking account and draw only 10% weekly against it. Let it continue to build, and at the end of each week draw only 10% of the balance. No more. When the weekly draw is more than sufficient to cover all of your expenses, both personal and business, you might allow a "bonus" to yourself occasionally... say once per quarter. But, only if it's there. Remember... 10%.
I earned my P/C license along with my life & health license in 1979. Never used the P/C part until the opportunity to buy a retiring friend's independent P/C agency in 1997. It was a learning curve, believe me! But, I was smart enough and lucky enough to find the right people to work with me. They had probably forgotten more than I ever knew. It's been great. Now I do a lot of the "bird-dog" work for my crew, and I rarely need to actually complete an application. Life is good!
Good Luck, AZ Newbie!
Wayne Lunday, LUTCF, CLU, ChFC
I earned my P/C license along with my life & health license in 1979. Never used the P/C part until the opportunity to buy a retiring friend's independent P/C agency in 1997. It was a learning curve, believe me! But, I was smart enough and lucky enough to find the right people to work with me. They had probably forgotten more than I ever knew. It's been great. Now I do a lot of the "bird-dog" work for my crew, and I rarely need to actually complete an application. Life is good!
Good Luck, AZ Newbie!
Wayne Lunday, LUTCF, CLU, ChFC
Re: AZ Newbie help
I've worked at a captive company for a few years. Although P&C is a large part of what's sold, L&H has the largest profit margin. At this particular company, if a producer is selling P&C like crazy but is unable to close a L&H deal, they get fired. It all comes down to profit. L&H is much more difficult to sell. If you can master selling L&H and get really good at it, not only will those skills transfer over to P&C, but you will also look like a great candidate to a captive company if you choose to go that route in the future. For now, learn what you can from your mentor. It seems like you've got a great opportunity on your hands.