Is This Possible?

Mark T · Post by **Mark T** » Sun Apr 24, 2005 5:08 pm

Need some feedback for a present situation that I am facing as follows:

I am a life underwriter and have been for 5 years. I have never sold insurance before. I have sold though. Before underwriting I was in sales for a cellular company and was promoted to manager over 3 stores. Was hired to start a new market from the ground up.

Anyway, I now have an opportunity to start an insurance agency (P&C). The agency will be funded by an investor with partial ownership. I would be put up in a nice facility (paid) and start up cost would be taken care of also. This 'backer' would pay me base salary for the first 12 months.

Whatever profit I make during the first 12 months would be on a draw off of the salary. I absolutely trust this backer and I know what's in it for him. (He funds his organization to build churches and orphanages.) He's already started several other businesses for

I have to meet with him (and his board) when I have a 5 year proforma showing numbers of what it will take to start the business and how it will increase in revenue and profit each year.

Before I ask a few questions, I feel I should mention that I am not a flake and this is serious. I am an extremely hard worker and I am not afraid of new challenges or opportunities. I've always wanted to own my own business and this is something that really appeals to me.

QUESTION: How does a guy who's never sold insurance, started an agency get the numbers he needs to build this proforma.

QUESTION 2: How does a guy who's never sold insurance get companies to offer contracts to sell their company's products.

QUESTION 3: How would a guy who's never sold insurance before
find a company to sponsor him to get his license - with the understanding that he would sell multiple for companies.

I understand this is a HUGE question. But any information would be greatly appreciated.

Grant · Post by **Grant** » Mon Apr 25, 2005 5:50 am

Mark,

I am not in P&C, so I can't provide that much information.

Some good info in this thread

<a href='index.php?showtopic=606' target='_blank'>ind...p?showtopic=606</a>

About starting an agency, you will have to start small and plan a good advertising strategy, once more business comes in then hire other agents.

sanddog · Post by **sanddog** » Mon Apr 25, 2005 12:13 pm

Mark T. I'm sure your not a flake, but after several years, you may be come flakey and loose your mind in this business. :blink: ****CLICK ON INSURANCE JOURNAL FORUMS ,THEN CLICK ON (HARD TO PLACE ACCOUNTS), THEN SCROLL DOWN TO (HOW DID YOU ALL GET STARTED). Read every single one of thoughts replies.
And read the Krystal ball for your future in the P & C business, it's all there for you.
Quote of the day: (Don't quit your day job), after 90 to 120 days you maybe thankful for that advice.

LCIS · Post by **LCIS** » Mon Apr 25, 2005 3:57 pm

You need to give a whole lot of additional information,
What State are you looking to do this?
what lines are you looking to sell, personal & commercial?
Would it be possible for you to buy an existing book of business? this would make it a lot easier to capture markets and have an income from the beginning. It is tough for about 4-5 years but there is a lot of variables to nail down. If you think you are going to get rich and make a lot of money and have free time, don't kid yourself. You can do all that but it takes TIME, TIME, TIME and lots of planning.
the following faces will describe a typical week in an agency from Monday thru Friday

Mon :huh:
Tues :unsure:
Wed

Thur

Fri :blink:

Good Luck

Mark T · Post by **Mark T** » Mon Apr 25, 2005 6:53 pm

Great feed back! I really appreciate the comments I'm getting. Very helpful.

LCIS,

I'm in Alabama. I'd be selling homeowners, some commecial and auto (this is what I know right now). I would not be getting an existing book of business.

OH don't I know it will be excrutiating the first several years. And, no, I have no get-rich-quick scheme dancing through my head. I know, and am fully prepared to work my rump off for the first several years - or however long it takes to gain momentum.

I have no doubt that I have a lot more planning and question-asking to do. I'm continually asking and inquiring all day long...

Thanks again for all the helpful comments people.

Look forward to hearing from others.

Blessings,
Mark T

goredsox · Post by **goredsox** » Wed Apr 27, 2005 10:58 am

Mark,

I just had a meeting with a very large P/C insurance company (I have other large companies but was checking out what is going on with the market). They want $350,000 in premium the first two years of signing with them (they told me it used to be $250,000 up until this year). If you don't hit that number, all commissions go to 8% which is really crappy.