Is it possible to make a career without selling to your family and friends?

[NewbieNewbie]

Somarca summed it up well but I will summarize. You have limited family and friends. What then. Do you think you will get an endless stream of referrals. Let's be frank. When was the last time you bought p and c from a referral. Guessing never

 

[somarco]

my p and c license is useless? I was thinking of testing to be an adjuster...

I considered that road at one time but learned how difficult it was to break into that field. You spend a lot of time as a journeyman (or woman) and hope you have found a place to grown.

I think carriers still have in house adjusters but there are also independent adjusters working on a contract basis.

I quickly gave up on the P&C side and focused on employee benefits. Turns out that was a better fit for my personality and served me well for a number of years . . . until it didn't. So I switched to a different market, still health insurance, but different and allows me more control.

Goals and aspirations change over time. I once had a dream of playing second base for the Yankees and hopefully taking over after Bobby Richardson retired. Didn't take long to realize that was an unreachable goal.

 

[Bunny95]

Quota (production requirements), particularly if you are on any kind of "subsidy", vs straight commission, no advance.

Limited product line. You can only sell plans and carrier(s) they allow.

If you "stumble" across a "big" case you may not be allowed to pursue it.

Required to assign commissions. Don't EVER do this.

Non-compete. Of course the forum lawyers will say a NC isn't enforceable but they fail to mention it will cost YOU money to defend a suit if they decide to go after you.

Agents don't just fall into a situation with no cost of entry, no production requirements, free leads and free coffee (which, as we all know, is for closers only).

You don't get a corner office with a view. No one will be standing outside your door with checkbook in hand.

To survive and prosper in this business you need to have a system where you have a USP . . . something beyond quoting a lower price.

You also need a steady stream of prospects who WANT to talk to you about their problems and have you help them find a solution that meets their needs and budget.

In other words, a dog with a note in his mouth could take the application.

This won't happen overnight but if you make this your goal, your business plan, and you stick with it, you will do well.

I will heavily research all of that...really good points.

I have read how lots of agencies will have you be 1099, so if a customer wants to sue, they'll come after you and not the agency. Especially if you don't have E and O insurance.

The places I interviewed at wanted me to have a base salary plus a small amount of commission. I think it was called earned as paid commission.

I know I'll get fired if I can't hit quotas, but would there be any other consequences for not hitting them?

When I read about people going into debt, many of them take hitting their quotas very seriously. Some of them even say they signed contracts to hit certain quotas, but they don't say why it's so serious. Ultimately they can just quit since it's at will employment right?

 

[somarco]

The places I interviewed at wanted me to have a base salary plus a small amount of commission.

Base salary means they own you. If you can't live off the base don't count on commissions to come through.

How small is small?

If you have to ask . . .

would there be any other consequences for not hitting them?

Maybe, it depends on how deep in debt you are to them. Some contracts may be written as if they are loaning you money.

they can just quit since it's at will employment right?

"At will" means the employer can let you go without cause.

If you don't like the job you are free to quit anytime.

 

[Travis Price]

So, salary isn't all doom and gloom. The question you have to ask yourself is if you want to be an employee or business owner.

If you want to be an employee, nothing wrong with that. Liberty Mutual pays 50k with bonus, looking at 70k and benefitis.

No need to worry about leads.

On the other hand, if you don't own the book.

Want to be a business owner? You need money or long hours.

I always thing of the average Joe going to P&C for a job, and you go to health to own a business.. but that's my opinion.

 

[rousemark]

I just got my P and C license. I've interviewed with companies like Farmers and Allstate and State Farm. They were all small agencies, and the owners kept telling me that they expected me to refer my family and friends.

I've worked in call centers before, and 99% of calls are either answering machines or you get hung up on in the middle of your intro.

So when I asked what the job was like during my interviews, the owners also told me that they expected me to do a lot of cold calling.

If the success rate from cold calling is just as low as my call center rate, then where do my clients come from? Do I have to sell to all the people I know?

I've read extensively and many people say they regret selling to family and friends. Especially while being an inexperienced agent like me...they said they made a lot of mistakes and that their family and friends were really unhappy and it led to a lot of issues with claims and other things.

I know I'll have to hit quotas. Is it really possible to do that only with the leads the agencies provide?

Why would you not want to sell to those that are close to you? If you have a product they don't have it, how are you going to feel when they have a loss and then ask, "you knew we needed it, why didn't you mention it yo us" Even if they don't say, you will believe they are thinking it when you see them suffering.

 

[Bunny95]

Why would you not want to sell to those that are close to you? If you have a product they don't have it, how are you going to feel when they have a loss and then ask, "you knew we needed it, why didn't you mention it yo us" Even if they don't say, you will believe they are thinking it when you see them suffering.

Because everyone I know does it online themselves. And since I'm new to the field, I don't have any kind of expertise to offer anyway.

 

[rousemark]

Because everyone I know does it online themselves. And since I'm new to the field, I don't have any kind of expertise to offer anyway.

I will guarantee you there are some coverages they will not shop the internet for. And, as far as no expertise, you have far more than they if you passed their lie censing exam. And, if you do get stuck on something you would have access to someone who can answer whatever questions you have.

 

[somarco]

everyone I know does it online themselves.

There are probably YouTube videos on how to perform brain surgery. That doesn't mean you should try it yourself.

GEICO was one of the first carriers to market direct to consumers. Some agents said that was the end of the independent agent.

It wasn't.

Allstate (once owned by Sears) had a booth in the middle of every Sears store. "Let us compare HO and auto rates while your wife shops".

Sexist? Yes, but nobody thought of it that way at the time.

The concept worked well but not well enough.

If everyone you know shops online that is good enough reason to figure out a way to sell to someone you DON'T know.

I don't have any kind of expertise to offer anyway.

Not yet . . .

But you will.

Everyone on here started somewhere. We knew little or nothing. Had no idea what we were doing. Made mistakes that cost us a sale or two.

Brain surgeons have YEARS of study, practice on cadavers, assisting surgeons before someone hands them a scalpel and says "here, you do it".

The more you study, the more questions you ask, the more mistakes you make (that don't cost a life) the closer you are getting to finding your niche.

It. Just. Takes. Time.

Don't be like the person that prayed, "God give me patience and give it to me right now".

 

[somarco]

And, as far as no expertise, you have far more than they if you passed their licensing exam. And, if you do get stuck on something you would have access to someone who can answer whatever questions you have.

THIS^^^^^^