- 11,305
I bet the daughter would be the primary agent?
Starting my Own Insurance Agency - HELP!!
- Thread starter Misr
- Start date
Warrior
Super Genius
- 150
My red flags are these:
1. There are legalities in order to contact folks for an insurance quote. Just because they go to a CPA does not allow him to contact them for insurance. He could be held liable in a law suit because he has all their personal info and is using it for other means that was not part of the CPA firm. Then you will be dragged down with him in law suits.
2. If you do not have appointments with Carriers, you will need to find a brokerage that will open you to them. Then you will make a cut of the commissions. Some brokerages will have the CRM packages that you pay a small monthly fee for. Find an independent agency that has been in business for over 20 years to see if they will take you on as a producer that has his own business.
3. If the business is making money, how much of a cut will the CPA get and how much will his daughter get? If he gives all of these clients to you, it is for a reason....to make him and his daughter money. Better get an attorney to make sure your getting the bigger cut. If you are going through a brokerage or an MIAA, you will have a monthly fee associated and a portion of your commissions will be cut drastically. Your amount you get paid then pay the CPA and his daughter will leave you with little or no money left to pay your office rent or operational cash.
4. If you are only selling commercial and not personal lines, there are certain appetites each carrier looks for to write it. It can take 1-3 months to get the policies written and issued as there are underwriting things that are taking place that are different than personal lines. Life insurance is simple to sell and you should be able to get appointments without a broker.
5. Remember, many carriers will only pay 1x per month and if it is a commercial policy, it will take longer to get paid.
I do not think you are thinking this through. I think you are seeing fools gold with all the Clients he has. But in reality, you never got their permission to contact them and you do not have carriers to write with yet. The appointments take 30-90 days to get you up and running. Is your CPA going to help with other operational expenses? HE is looking out for his daughter and will help you as long as your helping his daughter make sales. GET A LAWYER!!
1. There are legalities in order to contact folks for an insurance quote. Just because they go to a CPA does not allow him to contact them for insurance. He could be held liable in a law suit because he has all their personal info and is using it for other means that was not part of the CPA firm. Then you will be dragged down with him in law suits.
2. If you do not have appointments with Carriers, you will need to find a brokerage that will open you to them. Then you will make a cut of the commissions. Some brokerages will have the CRM packages that you pay a small monthly fee for. Find an independent agency that has been in business for over 20 years to see if they will take you on as a producer that has his own business.
3. If the business is making money, how much of a cut will the CPA get and how much will his daughter get? If he gives all of these clients to you, it is for a reason....to make him and his daughter money. Better get an attorney to make sure your getting the bigger cut. If you are going through a brokerage or an MIAA, you will have a monthly fee associated and a portion of your commissions will be cut drastically. Your amount you get paid then pay the CPA and his daughter will leave you with little or no money left to pay your office rent or operational cash.
4. If you are only selling commercial and not personal lines, there are certain appetites each carrier looks for to write it. It can take 1-3 months to get the policies written and issued as there are underwriting things that are taking place that are different than personal lines. Life insurance is simple to sell and you should be able to get appointments without a broker.
5. Remember, many carriers will only pay 1x per month and if it is a commercial policy, it will take longer to get paid.
I do not think you are thinking this through. I think you are seeing fools gold with all the Clients he has. But in reality, you never got their permission to contact them and you do not have carriers to write with yet. The appointments take 30-90 days to get you up and running. Is your CPA going to help with other operational expenses? HE is looking out for his daughter and will help you as long as your helping his daughter make sales. GET A LAWYER!!
Yeah. I would pass.
I think this would turn out to be an unhappy experience for both you and the CPA. You would be much better off to establish your own business and then revisit this subject a few years from now. You may find that this business is not for you. Obviously, you do not know how difficult it can be obtain carrier appointments. My opinion would be you need to find a mentor and learn the business before taking on something of this magnitude.
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For Multi-quote software, TheBusiness360 would be the good choice. They will provide the tailor-made solution for the same. This way, you can serve customers in much better manner. TheBusiness 360 also have a SaaS based application so that no investment needed at initial point.
- Thread starter
- #16
Thank you for the feedback.
1) I will be owner in the business
2) there will be a formal LLC with all terms spelled out
3) I will contact his "business" clients to offer a "new" service (he does other things beyond being a CPA) for an insurance review
4) I worked for a "semi-captive" agency before, I have a full understanding of what I need to do. I was hoping to hear "suggestions" here. But we'll pay for the fee to secure assistance from an association that was creating a pilot program just like what I was asking for information. I was trying to do some outside research on my own.
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also, he has a book of almost 10,000 clients, of which about 8,000 own businesses. We will be cross marketing commercial real estate and insurance as an "new aspect" of his business - he and I will have a separate LLC covering that "aspect" of his business.
Our LLC will be written with the lawyer of my choosing.
His daughter is studying for the exam and will work his book as well. Since I am part owner in the business, I get my commission and cut of "all" profit.
His daughter is only 24, I am 55, if I want to retire in 15-20 years, she can "buy" out my interest, otherwise, I will receive renewals until I die. We've discussed all of that, I'm just doing ground work to see the cost to see "if" we want to do it.
- Thread starter
- #17
Thank you for your response. He actually paid for my licenses last year. not for this purpose. I'm the one who approached him. I approached him initially looking to have him refer clients. He came back to me after tax season with this idea. His daughter will only get her license if we go through with this.
I respect your trust issues. He has helped me with some things and sees the potential. But, we both will be meeting with an attorney to draft the LLC. I've written them before and know what I want included for my protection..
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Thank you and I will. I'll meet with him this week.
I respect your trust issues. He has helped me with some things and sees the potential. But, we both will be meeting with an attorney to draft the LLC. I've written them before and know what I want included for my protection..
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Good Morning,
Thank you and I will. I'll meet with him this week.
You did hear "suggestions" here. Unfortunately, they did not validate what you had already made up your mind to do. Wish you the best of luck.
- Thread starter
- #19
Good Morning,
I respect everyone's feedback and desire to provide constructive advice. I've actually started and owned several businesses, as well as helped people set up their businesses in the past. From Medical Practice consulting, Real Estate, Credit Repair, Travel, EBay, Grant Writing, Resume Writing, and setting up a US office (including all the legal and licensing) for an International Freight Forwarder (also a friend) - I was offered a share in this business as well, but after setting up, going to training (he paid), I decided it wasn't a fit for me. He's also interested in this idea.
My friends are always looking for business ideas and have the resources to set up, and if needed, lose the money (up to about $100k). But, they never lose money
If we go through with it, the plan will be well researched and well laid out in writing.
I have a lot of business experience, which transfers over to this field, management - government and large private contractor, professional sales training (Sandler), sales psychology training, HR (so I know how to write job descriptions, screen for skills and hire and train new employees), worked for an insurance company in claims, worked for a semi-captive agency, and have a S.C.O.R.E. rep retired from L&H - he wasn't as knowledgeable as I'd like. He was more focused on having me follow his plan versus helping me test out mine based on his experience.
I appreciate everyone's supportive advice, my biggest need is understanding the infrastructure needed - software, E&O, the things required to set up my own agency to function as an independent insurance agency.
Thanks again
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Please see one of my later responses - it makes more sense then. I've also been a licensed Realtor for 15 years, 12 active and very productive. Never one compliant to the board, and I taught the real estate licensing courses and always had our office Real Estate attorney on speed dial. Being polite, when it came to the legality, I was very anal, to the letter, interpreting and apply the law. Insurance is no different, same compliance structures - and I've worked for an insurance company before, in claims. Both these areas alone bring the required transferable skills, not to mention being trained in utilizing the Sandler sales system for over 20 years.
For me, with my professional experience, selling insurance wouldn't be rocket science.
I appreciate your feedback
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Thank you for responding, please see my recent responses at the end of the chain, it will make sense then
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Thank you for your feedback - please see my later responses to understand my experience and how/why this opportunity exists.
Thank you for the info on " MGA and/or join a cluster or aggregator", could you tell me more about these.
Thank you
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This is what I was looking for, thank you. Any suggestions on something I heard mentioned "MGA and/or join a cluster or aggregator "?
I'll look into the 360.
Thank you again
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I am actually printing all the suggestions so I can refer back to to help using this process. I will meet with him this week and will now if we're proceeding.
Thank you again for your feedback
I respect everyone's feedback and desire to provide constructive advice. I've actually started and owned several businesses, as well as helped people set up their businesses in the past. From Medical Practice consulting, Real Estate, Credit Repair, Travel, EBay, Grant Writing, Resume Writing, and setting up a US office (including all the legal and licensing) for an International Freight Forwarder (also a friend) - I was offered a share in this business as well, but after setting up, going to training (he paid), I decided it wasn't a fit for me. He's also interested in this idea.
My friends are always looking for business ideas and have the resources to set up, and if needed, lose the money (up to about $100k). But, they never lose money
If we go through with it, the plan will be well researched and well laid out in writing.
I have a lot of business experience, which transfers over to this field, management - government and large private contractor, professional sales training (Sandler), sales psychology training, HR (so I know how to write job descriptions, screen for skills and hire and train new employees), worked for an insurance company in claims, worked for a semi-captive agency, and have a S.C.O.R.E. rep retired from L&H - he wasn't as knowledgeable as I'd like. He was more focused on having me follow his plan versus helping me test out mine based on his experience.
I appreciate everyone's supportive advice, my biggest need is understanding the infrastructure needed - software, E&O, the things required to set up my own agency to function as an independent insurance agency.
Thanks again
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no worries - please one of my later replies which clarifies
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Good Morning DHK,
Please see one of my later responses - it makes more sense then. I've also been a licensed Realtor for 15 years, 12 active and very productive. Never one compliant to the board, and I taught the real estate licensing courses and always had our office Real Estate attorney on speed dial. Being polite, when it came to the legality, I was very anal, to the letter, interpreting and apply the law. Insurance is no different, same compliance structures - and I've worked for an insurance company before, in claims. Both these areas alone bring the required transferable skills, not to mention being trained in utilizing the Sandler sales system for over 20 years.
For me, with my professional experience, selling insurance wouldn't be rocket science.
I appreciate your feedback
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Good Morning XRAC,
Thank you for responding, please see my recent responses at the end of the chain, it will make sense then
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Good Morning VolAgent,
Thank you for your feedback - please see my later responses to understand my experience and how/why this opportunity exists.
Thank you for the info on " MGA and/or join a cluster or aggregator", could you tell me more about these.
Thank you
----------
Good Morning Altonroot,
This is what I was looking for, thank you. Any suggestions on something I heard mentioned "MGA and/or join a cluster or aggregator "?
I'll look into the 360.
Thank you again
----------
Good Morning Rousemark,
I am actually printing all the suggestions so I can refer back to to help using this process. I will meet with him this week and will now if we're proceeding.
Thank you again for your feedback
linwoodforest
Expert
- 32
I recommend reading the thread by NCAgent if you haven't. http://www.insurance-forums.net/for...guide-p-c-new-agents-new-agencies-t46957.html
As for answers to your 3 questions:
1) EzLynx
2) Ezlynx for personal lines. Agentsecure for commercial lines quoting.
3) E & O and Professional Liability Insurance for the Insurance Industry - U.S. E & O Brokers
As for answers to your 3 questions:
1) EzLynx
2) Ezlynx for personal lines. Agentsecure for commercial lines quoting.
3) E & O and Professional Liability Insurance for the Insurance Industry - U.S. E & O Brokers
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